Delhi Lieutenant Governor Vinai Kumar Saxena launched a one-time real estate tax amnesty on Tuesday, “SAMRIDDHI 2022-23”, saying it will bring great relief to lakhs of residential and commercial property owners in the city.
SAMRIDDHI, an acronym for Strengthening and Augmentation of Municipal Revenue for Infrastructure Development in Delhi, will begin on October 26 and end on March 31, 2023, with no further extensions.
Under the scheme, homeowners can only pay the current and past five-year property tax principal. For commercial real estate, owners can pay the principal for the past six years and get a waiver of past dues, including penalty and interest, according to an official statement.
The lieutenant governor said SAMRIDDHI 2022-23 is a people-friendly initiative of the Delhi Municipal Corporation, which will bring great relief to the residents and encourage property owners to get rid of long-running disputes and related harassment.
He added that exemption from tax liability means that taxpayers get more money and MCD gets more revenue, enabling the civil society body to carry out the coveted civil infrastructure work for better services to the residents of Delhi.
Mr Saxena added that this new amnesty scheme will also broaden the tax base and allow MCD to build a decent tax database by being more pragmatic about the enforcement of its long-term tax levies.
According to the statement, the tax amnesty program provides for a “One Plus Five” option for residential properties and a “One Plus Six” option for non-residential properties.
“The taxpayers of homes under ‘One Plus Five’ are required to pay the principal of property taxes for the current year and the preceding five years (i.e. FY 2022-23 FYs 2017-18 to 2021-22), after which 100 percent interest and penalty on the outstanding tax amount will be waived and all previous dues before 2017-18 will be waived,” the statement said.
Similarly, under the ‘One Plus Six’ non-residential property scheme, property owners are required to pay the principal of property taxes for the current year and the preceding six years (i.e. FY 2022-23 FYs 2016- 17 to 2021-2022), after which 100 percent interest and penalty on the outstanding tax amount will be waived and all previous dues waived before 2016-17 in full,” it said.
If a taxpayer has not paid his tax debt before March 31, 2023, he is liable to pay all tax debts, together with interest and penalties since 2004 or since whatever year it is pending, and he is not entitled to any exemption.
Coercive measures will be taken against such defaulters from April 1 next year to collect the tax debt, the statement said.
It stated that if a taxpayer has already paid dues for any of the years 2017-18 or 2016-17, but that is not recorded in MCD tax records, he must provide proof of payment so that the tax database can be updated.
Such cases where the principal, interest and penalty have already been paid before the start of the settlement will not be reassessed and reopened, the statement said.
(Except for the headline, this story has not been edited by NewsMadura staff and has been published from a syndicated feed.)