Delhi LG launches one-time property tax amnesty scheme ‘SAMRIDDHI 2022-23’

Vinai Kumar Saxena, the lieutenant governor of Delhi, on Tuesday, unveiled the “SAMRIDDHI 2022–23” one-time property tax amnesty programme, claiming that it will be a significant relief for thousands of city residents and business property owners. Strengthening and Augmenting of Municipal Revenue for Infrastructure Development in Delhi, or SAMRIDDHI, will begin on October 26 and conclude on March 31, 2023, with no further extensions.

Residential property owners only need to pay the principal property tax for the current year and the previous five years under the plan. According to a formal declaration, owners of commercial properties may pay the principal owed for the previous six years and receive a remission of any past-due fees, including penalties and interest.

According to the L-G, SAMRIDDHI 2022–23 is a people-friendly programme of the Municipal Corporation of Delhi that will significantly relieve citizens’ concerns and motivate property owners to terminate long-standing conflicts and ensuing harassment.

The civic organization would be able to carry out much-needed civic infrastructure projects for better service delivery to the people of Delhi thanks to the waiver of tax duty, he continued, because it puts more money in the hands of taxpayers and generates more revenue for MCD.

Saxena continued by saying that by being more practical about the enforcement of its backlog of unpaid tax obligations, this new amnesty policy will help broaden the revenue base and allow MCD to create a proper tax database.

The tax amnesty scheme, according to the announcement, includes a “One Plus Five” option for residential properties and a “One Plus Six” option for non-residential buildings.

The taxpayers of residential properties covered by “One Plus Five” are obligated to pay the principal amount of property tax for the current year and the previous five years (i.e., FY 2022-23 + FYs 2017-18 to 2021-22) when all past-due amounts incurred before 2017–18 will be forgiven together with 100% interest and penalty on the unpaid tax amount.

Similar to this, the “One Plus Six” for non-residential properties scheme requires property owners to pay the principal amount of property tax for the current year and the prior six years (i.e., FY 2022-23 + FYs 2016-17 to 2021-22) after which 100% interest and penalty on the outstanding tax amount will be exempted and all previous dues before 2016-17 will be completely waived off, according to the statement.

If a taxpayer doesn’t pay his or her taxes by March 31st, 2023, he or she will be responsible for paying all outstanding taxes plus interest and penalties dating back to 2004 or since the relevant year and will not be eligible for any waivers.

According to the statement, such defaulters would start facing coercive measures on April 1 of the following year to collect unpaid taxes.

To update the tax database, it was declared that any taxpayer who has previously paid dues for any of the years from 2017–18 or 2016–17 but who had not done so as of yet would need to produce proof of payment.

The statement further stated that cases, where principle, interest, and penalties have already been paid before the beginning of the scheme, will not be reevaluated and reopened.

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