A New Era for Property Taxes in Delhi: MCD Announces Online Filing Requirement

On September 19, 2024, the Municipal Corporation of Delhi (MCD) announced a crucial update regarding the filing of Property Tax Returns (PTR). This new directive is aimed at streamlining the property tax process and ensuring that all tax payments are recorded accurately in the MCD’s system.

Overview of the Notification

Under the Delhi Municipal Corporation (Amendment) Act, 2003, property owners or occupiers are mandated to file their Property Tax Returns and make property tax payments online through the MCD’s designated system. This initiative is designed to enhance transparency, efficiency, and ease of access for taxpayers by allowing them to view their payment history in the E-Passbook.

The Problem with Offline Payments

Despite the emphasis on online filing, many taxpayers have been circumventing the online PTR process by making lump sum payments via RTGS, NEFT, or other offline methods. This practice has led to significant reconciliation issues, making it difficult for the MCD to accurately track payments and update records. Such discrepancies can complicate tax assessments and create confusion for both the taxpayers and the municipal authority.

New Rules Effective April 1, 2025

To address these challenges, the MCD has made a significant decision: starting April 1, 2025, the corporation will no longer accept property tax payments without a corresponding online PTR filing. This means that all property tax payments must be preceded by the completion of the online PTR process.

Benefits of the New System

  1. Streamlined Process: The mandatory online filing is designed to create a more organized and efficient method for tax assessment and collection.
  2. Transparency: By keeping records in the E-Passbook, taxpayers can easily track their payments and obligations, reducing the potential for disputes.
  3. Improved Accountability: This system will help the MCD maintain accurate records, ensuring that all payments are documented properly.
  4. Easier Compliance: Property owners will find it simpler to comply with tax regulations as the online system will guide them through the process.

The MCD’s announcement regarding mandatory online Property Tax Returns filing is a step towards modernizing and improving the efficiency of the tax collection system in Delhi. By eliminating offline payment methods without prior online PTR submissions, the MCD aims to enhance accuracy and accountability in property tax management.

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