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The Municipal Corporation of Delhi (MCD) has launched a comprehensive house tax amnesty scheme to help property owners clear long-pending dues. Under the scheme, taxpayers only need to pay the principal property tax for the past five years; all interest and penalties will be waived. Arrears dating back to 2004 will also be forgiven. Applicable to both authorised and unauthorised colonies, the scheme offers a No Objection Certificate (NOC) upon payment, simplifying future property dealings. Available until March next year, it aims to boost compliance among Delhi's 3.5 million properties, where only 1.3 million currently pay taxes, and address revenue shortfalls.
The Municipal Corporation of Delhi (MCD) has recently launched an extensive house tax amnesty scheme intended to relieve property owners from the financial strain of accumulated tax arrears and penalties. This new policy directly addresses widespread concerns about rising property tax bills and overdue payments. Advertisement
Under the terms of the scheme, property owners will be required to pay only the principal property tax dues for the previous five years. All accumulated interest and penalties on these dues will be waived. Furthermore, the scheme completely forgives property tax arrears dating as far back as 2004. Once dues are settled under this scheme, taxpayers will be issued a No Objection Certificate (NOC), which will simplify interactions with various civic authorities and ease property-related transactions.
The scheme extends to property owners in both authorised and unauthorised colonies, including those in regularised colonies. Taxpayers will benefit from the waiver of arrears and penalties of up to 15 years, provided they clear the principal dues for the current year plus the last five years. If an individual has missed payments for a certain number of years, they would only need to settle arrears corresponding to those specific years.
The scheme is designed to be available throughout the year, concluding at the end of March next year, with the intention of encouraging as many property owners as possible to participate. The last similar amnesty scheme, introduced during the 2022-23 financial year, saw nearly 130,000 taxpayers take advantage of the relief.
Currently, the MCD oversees approximately 3.5 million properties across Delhi, yet only about 1.3 million property owners regularly pay their property taxes. For the recent financial year, property tax collections reached around INR 2,163 crore, falling short of the expected targets. The introduction of this amnesty scheme is expected to improve these figures significantly by increasing taxpayer compliance.
In contrast, the previous government had proposed waiving property tax entirely for properties up to 100 square yards and halving it for properties up to 500 square yards. However, the MCD has chosen to opt for a broader amnesty approach rather than those specific concessions.
With millions of properties in Delhi and a large gap in tax compliance, this move could mark a turning point in addressing chronic revenue shortfalls while easing long-standing taxpayer grievances. The scheme's inclusive nature and extended timeframe offer a practical path forward for Delhi's urban administration.
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