NDMC Releases New Property Tax Bye-Laws for Lutyens Delhi

The New Delhi Municipal Council (NDMC) is set to bring in a new property tax regime for Lutyens' Delhi.

It has released the New Delhi Municipal Council (Property Taxes) Bye-laws 2026 for public feedback. People can send objections and suggestions to the property tax department by October 23.

From Rent-Based Assessment to Unit Area Method

Under the current system, the tax department uses a dual approach. It combines an estimate of rent value, property records, and ground surveys. Residents review the assessment list and can raise objections each year.

The rest of Delhi, under the Municipal Corporation of Delhi, moved to the Unit Area Method (UAM) in April 2004.

Under the Jan Vishwas Act, passed by Parliament in April this year, the old method is expected to be phased out. The entire New Delhi area will then operate on UAM.

How Tax Will Be Calculated

Officials said the new regime follows amended provisions of the NDMC Act, 1994. The tax will depend on several factors.

• The property's usage
• The age of the construction and the building's structure
• Whether it is self-occupied or rented
• Infrastructure in the area, with rates varying by road width

A Municipal Valuation Committee will recommend tax rates, slabs, base values, and categorisation of colonies. Base unit area values will stay in force for three years.

They will be multiplied by five factors: use, age, structure, occupancy, and infrastructure and location.

Streets will fall into three categories. Category I is 24 metres and above. Category II is 13.5 metres to under 24 metres.

Category III is under 13.5 metres. Buildings will be grouped into eight age categories, from Group A, built before the 1960s, to Group H, built between 2020 and 2029.

Also Read: DDA Offers 2,516 LIG Flats in Narela at 25% Discount

Rebates, Payment, and Interest

The draft prescribes up to 30 percent rebate for senior citizens, women, and physically challenged persons.

It applies where the covered space is up to 100 square metres. Vacant plots will face a vacant land tax, with rates to be set later. If ground-floor construction covers 25 percent or more of the plot, no vacant land tax applies.

Tax can be paid as a lump sum or in four quarterly instalments, due on June 30, September 30, December 31, and March 31.

A rebate of up to 15 percent applies for lump sum payment before June 30. Late payments attract simple interest of 1.5 percent per month.

Also Read: NDMC Announces 10% Rebate on Property Tax Payments Until June 30

What It Could Mean for Taxpayers

NDMC has around 16,400 properties under its tax net. It has approximately 10,500 taxpayers, including 1,600 government-owned properties. The civic body said UAM may reduce property tax by 20 to 30 percent, especially for old and self-occupied properties.

This is because the tax will use a uniform unit area basis, not expected rental income.

An NDMC functionary said suggestions will be reviewed internally, and the draft revised and placed before the Council. A notification will follow approval.

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