To provide tax relief to lakhs of property owners, the Lieutenant Governor of Delhi, Vinai Kumar Saxena, announced a one-time property tax amnesty scheme, Samriddhi 2022-23’ on October 25, 2022. Samriddhi, the acronym for Strengthening and Augmentation of Municipal Revenue for Infrastructure Development in Delhi, will commence on October 26, 2022, and will continue till March 23, 2023, with no further extensions.
According to an official statement, under the property tax amnesty scheme, owners of residential and commercial properties in the city are eligible to pay only the principal property tax amount of the current and past five years. On the other hand, owners of commercial properties can pay the principal amount of the last six years and obtain a waiver on the past pending dues, including penalties and interest.
The lieutenant governor said that Samriddhi 2022-23 is a people-friendly initiative of the municipal corporation of Delhi (MCD), which will give a huge relief to the citizens and encourage property owners to get rid of long-pending disputes and related harassment.
The waiver of tax liability implies more money for taxpayers and increased revenue for the MCD. Therefore, it will enable the civic body to carry out civic infrastructure work for improved service delivery for the citizens, he added. Moreover, the new amnesty scheme will expand the tax base and help the municipal authority to develop a proper tax database by being more pragmatic about enforcing the long-pending tax dues.
As per the official statement, the property tax amnesty scheme envisions a ‘One Plus Five’ option for residential and a ‘One Plus Six’ option for non-residential properties.
Under the ‘One Plus Five’ option, taxpayers of residential buildings will have to pay the principal amount of property tax for the current year (FY 2022-23) and the past five years (FY 2017-18 to FY 2021-22) wherein 100 per cent interest and penalty on the outstanding tax amount will be exempted, and the previous dues before 2017-18 will be waived off.
Likewise, under the ‘One Plus Six’ for non-residential properties, property owners must pay the principal amount of property tax for the current year (FY 2022-23) and the previous six years (FY 2016-17 to FY 2021-22). In this case, 100 per cent interest and penalty on the outstanding tax amount will be exempted, and the previous dues before 2016-17 will be waived off.
If a taxpayer fails to pay the dues by March 31, 2023, he will not be eligible for any waiver and will have to pay all the tax dues along with interest and penalty since 2004 or since the year it has been pending.
Stringent measures to collect the tax dues will be initiated against defaulters from April 1, 2023, as per the statement.
If a taxpayer has already paid the tax dues for any year from 2017-18 or 2016-17 but if it has not been recorded in the authority’s tax data, he must submit a proof of the tax payment so that it can be updated in the tax database. As per the official statement, cases where principal, interest and penalty are already paid before the launch of the new scheme, shall not be reassessed, and reopened.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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