MCD increases house Tax & Imposed New Professional Tax on Delhiites

In the capital of the country which is facing economic trouble during the Corona period, the South Delhi Municipal Corporation has approved the decision to increase the tax. With this, the BJP-ruled South Delhi Municipal Corporation has not only increased the tax but has also prepared to take a new ‘professional tax‘ from the public.

Professional tax

In South Delhi, all professionals including doctors, engineers, architects, chartered accountants will have to pay a new type of tax ‘professional tax’. According to the passed proposal, professionals whose annual income will be between Rs 6 lakh and Rs 9 lakh, will have to pay Rs 1200 tax every year

Monthly IncomeAmount Payable
Less than ₹50,000Nil
₹50,001 – ₹75,000₹100/- Per Month
₹75,001 – ₹1,00,000₹150/- Per Month
₹1,00,001 and Above₹200/- Per Month
Annual IncomeAmount Payable
₹6 Lacs per AnnumNill
₹6 – 9 Lacs₹1200/- Per Year
₹9 – 12 Lacs₹1800/- Per Year
12 Lacs and Above₹2400/- Per Year

And the professionals whose annual income will be from 9 lakh rupees to 12 lakh rupees, they will have to pay 1800 rupees tax every year. At the same time, professionals with an annual income of 12 lakh or more will have to pay a professional tax of Rs 2400 annually.

House tax

House tax will be levied by the Municipal Corporation in unauthorized colonies. A senior officer of the Municipal Corporation says that house tax was always being collected from raw colonies. According to the Act, if the colony is raw or confirmed, house tax has to be paid. 

But till now only 8 to 10% of people from raw colonies were paying house tax. For this reason, since the new tax system was implemented in 2004, the house tax till 2018 has been waived. But for this, it will be mandatory to submit house tax annually for 2019 and 2020.

A senior official said that for example, for any residential house built in a 100-meter section in raw colonies, a house tax of 1000 to 1200 rupees has to be paid annually. The municipal corporation estimates that 150 to 200 crores can be collected from raw colonies on the recovery of the outstanding tax.

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However, Opposition Prem Chauhan, the leader of the Aam Aadmi Party’s South Delhi Municipal Corporation, has alleged that the Municipal Corporation is taking a new tax from unauthorized colonies in the name of waiving old tax arrears. Prem Chauhan said that “There are 927 unauthorized colonies in South Delhi, Municipal Corporation does not use any fund for basic facility and development in these colonies. Then why BJP-ruled Municipal Corporation wants to collect tax from unauthorized colonies? There is a demand that basic arrangements should be provided by the corporation in raw colonies. “

At the moment, politics has got hot in the whole matter. MCD in-charge of the Aam Aadmi Party in Delhi, Durgesh Pathak, has said that “The BJP’s South MCD has imposed a tax burden on Delhi’s people during the Corona era. Now, even during this epidemic, every citizen will face an additional burden.”

The Aam Aadmi Party has also targeted Delhi BJP, President Adesh Gupta. In fact, Adesh Gupta had tweeted on Sunday, saying, “I have spoken to the Mayor of South Delhi Municipal Corporation and requested to withdraw the Corporation’s proposal for an increase in taxes brought by the Corporation officials. The Mayor agrees.”

Surprisingly, contrary to BJP’s Delhi Pradesh President Adesh Gupta’s claim, the BJP-ruled South Delhi Municipal Corporation approved the proposal to raise taxes in the House. At the same time, the Aam Aadmi Party has given a statement that if the BJP-ruled South Delhi Municipal Corporation does not take back the decision to implement the new tax and increase the duty tax, then it will protest on the streets.