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MCD property tax collection rises 46% to INR 3,116 crore in FY26 on improved compliance and amnesty scheme

#Taxation & Finance News#India#Delhi
Last Updated : 3rd Apr, 2026
Synopsis

Municipal Corporation of Delhi has reported a 46% increase in property tax collection to INR 3,116.62 crore in FY26, driven by enhanced enforcement measures and the Sumpattikar Niptaan Yojana (SUNIYO) amnesty scheme. The number of taxpayers rose 19.36% to over 13.5 lakh, indicating a broader tax base. The amnesty scheme contributed INR 1,236.03 crore, with significant collections from both residential and non-residential properties. The civic body also leveraged third-party data sources to identify unassessed properties and initiated action against defaulters. The scheme has been extended until the end of April with a penalty provision to encourage further compliance.

Municipal Corporation of Delhi has recorded a 46.12% increase in property tax collection in the 2025-26 financial year, with total collections reaching INR 3,116.62 crore compared to INR 2,132.89 crore in the previous year, according to an official statement released in recent days. The increase has been attributed to improved compliance, targeted enforcement measures, and the implementation of a property tax amnesty scheme.


The number of taxpayers also rose during the year, increasing by 19.36% to 13,52,562 from 11,33,161 in the previous financial year. The rise in taxpayer participation indicates an expansion of the tax base, supported by policy interventions and administrative measures undertaken by the civic body.

A significant portion of the total revenue was generated through the Sumpattikar Niptaan Yojana (SUNIYO), an amnesty scheme designed to encourage taxpayers to clear outstanding dues. The scheme contributed INR 1,236.03 crore from 2,06,861 taxpayers during FY26. Of this, INR 242.87 crore was collected from more than 1.47 lakh residential properties, while INR 993.52 crore came from over 59,000 non-residential properties.

Officials indicated that the scheme also helped bring new taxpayers into the system. Around 1.12 lakh individuals paid property tax for the first time under the scheme, contributing INR 448.89 crore. This reflects the scheme's role in improving compliance and expanding coverage across previously unregistered or non-compliant properties.

In addition to the amnesty initiative, the MCD undertook data-driven measures to identify unassessed properties. By leveraging third-party data sources such as trade licences and electricity consumption records, the civic body mapped 5,808 new properties, generating INR 25.68 crore in revenue. A further 43,114 properties were identified through power distribution data, contributing approximately INR 40.20 crore.

Enforcement actions were also taken against long-pending defaulters, including the attachment of properties in certain cases to recover dues. These measures formed part of a broader strategy to strengthen compliance and ensure timely payment of property taxes.

The MCD has extended the SUNIYO scheme until the end of April, with a 5% penalty applicable on dues, urging property owners to clear pending liabilities within the revised timeline. The extension is aimed at sustaining the momentum in collections and further expanding the tax base.

The increase in property tax revenue highlights the role of policy interventions and administrative reforms in improving municipal finances. With a combination of amnesty measures, data-driven identification, and enforcement actions, the civic body has enhanced its revenue collection framework, supporting urban governance and infrastructure funding.

Source - PTI

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