NEW DELHI: The New Delhi Municipal Council (NDMC) announced on Monday that implementing the Unit Area Method (UAM) could lower property taxes by 30 to 50%, particularly benefiting older, self-occupied properties.
This initiative is part of key amendments in the Jan Vishwas (Amendment of Provisions) Bill, 2026, introduced by Minister of State for Commerce and Industry Jitin Prasada in the Lok Sabha on Friday. The bill seeks to amend several provisions of the Delhi Municipal Corporation Act, 1957.
NDMC Vice-Chairperson Kuljeet Singh Chahal emphasized that UAM could provide significant relief for older properties and allow for separate assessments of different property parts, such as shops and storage. He stated that the system promotes transparency through self-assessment and online payment, which can lessen disputes.
During a meeting with traders in Connaught Place, Chahal announced that the maximum property tax rate would drop from 30% to 20%, directly benefiting taxpayers in the NDMC jurisdiction.
“This new approach will replace the existing rental value-based system with a uniform unit area assessment, ensuring equitable taxation for similar properties within the same locality,” Chahal commented.
He assured traders that tax rates would be adjusted responsibly, with thorough consultations with their representatives before implementation, aiming for a more transparent and effective system.
However, traders expressed concerns regarding the UAM implementation, particularly about tax rates, enforcement authority, and fairness in recovery processes. Atul Bhargava, President of the NDTA, insisted on uniform taxation practices: “There should be ‘one city, one tax’ applicable to both MCD and NDMC areas.”
He voiced objections to coercive measures like sealing shops, stating that recovery should focus only on defaulters. “Most traders in Connaught Place are compliant taxpayers,” he noted.
“We pay GST and income tax. However, officials’ actions sometimes make us feel as if we are dishonest,” Bhargava added.
Chahal explained that the age factor in the UAM would support older properties, while differentiation would allow for tailored assessments of various property components.
He also mentioned existing issues related to property ownership structure. “Previously, plots in Connaught Place were sold in lots, leading to complications when some shops default. Why penalize compliant businesses?” Bhargava argued.
Chahal highlighted that the NDMC collected Rs 1,045 crore in property tax last year, expecting it to rise to around Rs 1,350 crore this year.
Additionally, to promote PNG connections, Chahal announced a three-month waiver on road restoration charges for pipeline work conducted by Indraprastha Gas Limited (IGL).
