Capital taxes have become a main issue these days and especially when they seem to be increasing at a good pace in a short passage of time. There has been another rise in the property tax rate from April 2010. Delhi’s Municipal Valuation Committee (MCV) has re-organized the tax structure regarding the eight categories of colonies in Delhi. These categories are divided from the alphabet A to Alphabet H, starting with the best places like Shanti Niketan, Vasant Vihar, etc. in the category A.
The residential areas from the category view point will face a change in the current rate of tax on property:
- Category A- a proposed hike of 2%
- Category B- a proposed hike of 2%
- Category C-a proposed hike of 3%
- Category D-a proposed hike of 3%
- Category E- a proposed hike of 100%, where the current rate of 6% will be replaced by 12%
- Category F-a proposed hike of 1%
- Category H-a proposed hike of 1%
From the above, a sequence has been created in which the disadvantage remains to the middle categories like Category C, D and E. Category E seems to be the worst affected category as the people belonging to those areas will now have to double their taxation expense on properties. There seems to be a gradual increase in the category A and B, but never then less this increase in 1% will fetch greater revenue to the state government than in any other class or category.
In addition to it the Delhi government has also proposed to increase the number of colonies under the category A. The MCV wants the number of colonies to be 100 in ‘A’ category as a result of which numerous areas of East Delhi, West Delhi and South Delhi will become accessible to Metro. This current increase has resulted in the second time increase in property tax in Delhi, the first one being in January 2010. Now getting into the figure game, the valuation of property 100 square meter property will cost about:
- Category A- Rs 5, 670
- Category B- Rs 5, 000
- Category C-Rs 3, 000
- Category D-Rs 2, 500
The estimated hike for non-residential property is from 10% to 15% in Category A and B, whereas the hike in property belonging to Category C, D and E will be from 10% to 13% and categories like F, G, and H will face a hike from 10% to 12%. The Public schools and nursery school have also been taken into account with a new rate of 12% instead of the ld rate of 10%, added to it the farm houses also faces the hike from 10% to 15% which have a residential purpose, if not, then the hike is from 15% to 20%.
Hence, it can be concluded that the sudden increase in property tax in Delhi has really made a lot of change its financial plan and is looking to finance feasible projects in the future. Therefore, the hike should not be said as a burden but as an additional help for the development for the state.
Related posts:
- More Tax on House Property Income under Direct Tax Code
- Tax Implications on Second House Property
- Changes in Taxation of Income from House Property
- New Provisions of Service Tax on Sale and Construction of Residential Property
- Only House Owner can Claim Deduction u/s 80C
Sponsored Links
Comments on this entry are closed.