Wednesday, July 7, 2010

Are You Living Near Metro; Be Prepared to Burn Hole in your pocket

Very happy that Your House is near Metro: Consider Once Gain Because You Will Have to Pay More Tax

Living near the Metro line might cost some colonies dearly with the interim report of the third municipal valuation committee recommending re-categorizing colonies like Lajpat Nagar-I from category C to A along with many other colonies such as Chandni Chowk E to C , Saket from C to A etc. Other colonies which have been re-categorized based on other criteria such as civic amenities; road network includes Mayur Vihar which has been upgraded from D to C

Said an official: ‘‘Other colonies which have been upgraded due to proximity to the Metro include Model Town from C to B, Rajouri Garden and Sarvapriya Vihar from B to A, Janakpuri from D to B and Moti Nagar from D to C, Kamla Market and Kalkaji which are proposed to be upgraded from D to C.’’

Meanwhile, colonies being re categorized based on other criteria include Madhu Vihar from D to C, Preet Vihar from C to B and Rohini from D to C. As per the report, a total of 168 colonies will be re-categorized with maximum colonies being upgraded from E to D.

If MCD goes ahead with re-categorization of colonies, there will be a major change in the tax slab for upgraded colonies. Areas under the jurisdiction of MCD are at present, divided into categories A to H depending on the infrastructural facilities there. Any colony that has a grading of 89 or more in terms of facilities, comes under category A and category B has grading between 75 and 88. At present, there are 28 category A colonies in Delhi, where the tax rates are higher.

The reports also suggest increasing the property tax levied on commercial rented properties. Added the official: ‘‘The report says that by doing so, MCD will earn an additional revenue of Rs 180 crore.’’

Besides this, the report suggests levying taxes on 5-star hotels, multiplexes, petrol pumps, farmhouses (non-residential), malls based on the rates fixed for category ‘A’ while for three and four star hotels, the rates will be same as those charged for category ‘B’. Said an official: ‘‘If this happens, malls will land up paying Rs 8.90 crore more, guesthouses will have to shell out 10 crore more. Similarly, the amount of money paid by all the above categories will increase substantially.’’

The third municipal valuation committee’s interim report has also recommended MCD should try and increase its tax base.