New Delhi, March 27 The government has proposed a new property tax framework in the New Delhi Municipal Council (NDMC) areas, ease criminal provisions for minor offenses, and tighten enforcement for tax violations.
This is part of the Jan Vishwas (Amendment of Provisions) Bill, 2026, which was introduced by Minister of State for Commerce and Industry Jitin Prasada in the Lok Sabha on Friday.
The bill proposes a complete overhaul of the tax structure under the New Delhi Municipal Council (NDMC) Act, 1994, specifying that property tax will now comprise two components: building tax and vacant land tax, replacing the earlier section 61 of The New Delhi Municipal Act 1994.
To implement this, it is proposed that a Municipal Valuation Committee will be set up every three years to classify properties, fix base values, and recommend how taxes should be determined and revised. If revisions are delayed, values may be indexed to inflation, ensuring periodic increases, proposed legislation states.
The proposed bill seeks to introduce a mandatory Property Identification Code for each property, which residents will need for tax payments and civic services.
The bill also clarifies that service charges on Union government properties in NDMC areas may be levied at 75 per cent of the applicable property tax, addressing a long-standing issue in municipal finances.
According to the proposed legislation, a large number of existing provisions in the NDMC Act relating to taxation and procedures are proposed to be omitted, signalling a shift away from the older framework towards a more standardised, formula-driven system. New definitions, including those for annual value, vacant land and the valuation committee, have been inserted to support this change.
Under the Delhi Municipal Corporation (MCD) Act, 1957, the bill seeks to rationalize penalties and improve compliance. It proposes clearer timelines for assessment, barring tax authorities from reopening cases beyond seven years, except in instances of wilful suppression of information.
Penalties for tax evasion are proposed to be linked directly to the amount evaded, with fines of at least 50 per cent, while serious cases may still invite imprisonment.
The proposed amendments also update legal references in the MCD law to align with the new criminal codes, including the Bharatiya Nyaya Sanhita, 2023.