Delhi Moves to Digital Property Tax Payments

The Municipal Corporation of Delhi (MCD) has announced a significant change in its property tax payment policy, discontinuing the acceptance of cheques starting July 1. This decision aims to address legal complications associated with dishonoured cheques and streamline the payment process for property owners.

As per the MCD’s statement, the legal issues arising from bounced cheques have necessitated this shift. “Due to legal issues arising out of dishonoured cheques, cheque payments of property tax shall be done away with July 1 onwards,” the MCD stated. The civic body will now promote digital payment modes, including Unified Payments Interface (UPI), digital wallets, demand drafts, pay orders, and other online payment gateways.

The MCD emphasised the advantages of electronic payments, highlighting that these methods would not only ensure timely payments and receipt issuance but also enhance the overall ease of doing business. “The electronic payment will not only ensure timely payment and issue of receipt but also facilitate ease of doing business. Taxpayers will be able to pay property tax conveniently and receive faster reconciliation of the same,” the statement added.

In addition to this payment policy update, the MCD has issued an appeal to property owners to pay their property taxes for the year 2024-25, including taxes for vacant buildings. The MCD is encouraging property owners to self geo-tag their properties, a measure aimed at improving the accuracy and efficiency of property tax administration.

The MCD’s appeal also includes a financial incentive for early payment. Property owners who make a lump sum payment of their property tax before June 30, 2024, will receive a 10% rebate. This incentive is designed to motivate timely compliance and reduce administrative burdens.

“MCD appeals to all the property owners and occupiers of the vacant lands and buildings to pay tax for the current year 2024-25 and get a 10% rebate on lump sum payments of tax before 30th June 2024. All property owners/occupiers of the vacant lands and buildings are also advised to geo-tag their properties,” the civic body urged.

This move aligns with the provisions of Section 114 of the Delhi Municipal Corporation Act, 2003 (Amended), which mandates that all buildings and vacant lands under MCD jurisdiction are liable to pay property tax. By promoting digital payments and geo-tagging, the MCD aims to enhance tax collection efficiency, reduce instances of non-compliance, and improve overall urban governance.