Delhi Launches Property Tax Amnesty "SAMRIDDHI" Scheme w.e.f 26th October, 2022

CA Ankit Gulgulia (Jain) (B.COM (H) FCA CIFRS CBV R-ID (IICA) R. Valuer (IBBI))   (5842 Points)

27 October 2022  


 Delhi Lieutenant Governor Vinai Kumar Saxena on Tuesday, October, 25th, 2022 launched “SAMRIDDHI 2022-23”, a scheme providing residential and commercial property holders an opportunity to clear their outstanding property tax dues by paying up only for the past six and seven years, including the current one and without any interest, instead of coughing up the entire tax dues along with interest and penalty since 2004.

 

This scheme, which will be valid from October 26, 2022 till March 31, 2023, could go a long way in resolving thousands of pending court cases involving citizens and the Municipal Corporation of Delhi (MCD).

The amnesty proposal could also bring such property owners under the tax purview and generate revenue that could help in building better infrastructure and provide efficient municipal services to the public.

A senior official from Raj Niwas said in case a taxpayer fails to settle his tax dues by March 31, 2023, s/he shall be liable to pay all tax dues along with interest and penalty since 2004 or since whichever year it has been pending and shall not be entitled to any waiver as per the scheme. The coercive measures to collect the tax dues shall be launched against such defaulters from April 1, 2023.

The official said in order to avail the benefit of the scheme, tax payer have to apply in the prescribed form online and make payment of the dues, as per scheme, online.

While informing the features of this amnesty scheme, a senior official from Raj Niwas stated that it consists of “One Plus Five” for residential and “One Plus Six” for Non-Residential property holders.

“The taxpayers of residential properties under ‘One Plus Five’ scheme are required to pay the principal amount of property tax for the current Year and previous five years, whereupon 100 per cent interest and penalty on the outstanding tax amount shall be exempted and all the previous dues prior to 2017-18, will be waived off,” he said.

“Similarly, under ‘One Plus Six’ for Non-Residential properties Scheme, property owners have to make payment of Principal amount of property tax for the current Year and previous six years and the 100 per cent interest and penalty and all the previous dues prior to 2016-17, will be completely waived off,” he said.

“According to this scheme, if any taxpayer has already paid tax dues of any of the years 2017-18 onwards or 2016-17 onwards, but which has not been captured in MCD tax data, they have to submit the proof of payment so that the tax data base can be updated. Such cases where principal, interest and penalty has already been paid before the launch of the scheme, shall not be reassessed and reopened,” official informed.

“The Scheme will also cover cases of the dishonored cheque (s) including cases where bank account and property has been attached as well as those pending under litigation in any court (s) of law, subject to respective terms and conditions,” he said.

“During the scrutiny, if it is found that the taxpayer has not deposited the right amount of tax by willful suppression of fact or misrepresentation of fact, the benefits extended shall be withdrawn. However, any discrepancy in this regard may be raised only within a period of one year from the receipt of the application and, thereafter no claim in this regard shall be made by the department and the case will be deemed as closed,” the official stated.

The LG said this scheme was a people friendly initiative taken by MCD, which will provide a big relief to the residents of authorised and regularised colonies and encourage property owners to get rid of long pending disputes and related harassment, he said.

Saxena said waiver of tax liability means more money in the hands of taxpayers, more revenue for the corporation, thereby, enabling it to undertake much desired civic infrastructure work for better service delivery to the people of the national Capital.

Thus, the scheme brings prosperity (samriddhi) to all stakeholders, officials further said.

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