NDMC issues 30-day notice for property tax payment, traders say 'excessive'

The New Delhi Municipal Council (NDMC) has issued showcause notices to 380 property tax defaulters, warning of strict action, including attachment and account freezing, if their dues remain unpaid.

With the financial year 2024-25 nearing close, the NDMC has intensified its tax recovery efforts, identifying 3,200 taxpayers who have defaulted for three consecutive years, the civic body said in a statement.

The defaulters have been warned of coercive measures if payments are not made within the stipulated time.

"Under NDMC regulations, a 30-day show-cause notice is issued to 380 defaulters, followed by additional reminders. If there is no response or payment, the Council may take action, including property attachment, sealing, or account freezing," said the statement issued on Thursday.

The NDMC, which oversees approximately 15,600 properties, aims to collect Rs 1,150 crore in property tax this year. As of mid-February, Rs 807 crore had been collected.

The NDMC also announced that the tax collection centre at its headquarters in Palika Kendra and three counters in Gole Market, RK Puram and Sansad Marg will remain open on Saturdays and Sundays in March (except any gazetted holiday) beyond normal working days due to for the ease of taxpayers.

The NDMC has attached 13 properties in Connaught Place and sealed some shops and restaurants over the last three days for the non-payment of property taxes.

Meanwhile, the New Delhi Traders Association (NDTA) expressed concerns over what it calls were excessive tax demands and business closures. It has urged the civic body to streamline tax collection and ensure ease of doing business.

One NDTA member pointed out alleged disparities in tax structures. "Businesses in MCD areas pay almost 20 times less tax than those under NDMC's jurisdiction. We demand 'one city, one tax' for a level playing field," he said.

With both the New Delhi MP Bansuri Swaraj and local MLA Parvesh Sahib Singh from the BJP, traders are hopeful their concerns will be addressed.

"Now, we have BJP representatives at all levels. A 'single engine' government is in the NDMC, and we expect our issues to be resolved soon," an NDTA office-bearer said.

The traders body has approached both the MP and the MLA and they have assured that a new law is under process to remove ambiguities in the tax system, the NDTA office-bearer added.

"The prime minister has consistently emphasised ease of doing business. We hope that more streamline taxation system will be there in the NDMC area," another NDTA representative said.