New Delhi, March 30 The New Delhi Municipal Council on Monday said that implementing the Unit Area Method (UAM) could reduce property tax by 30 to 50 percent, particularly benefiting older and self-occupied properties.
This move is part of key amendments under 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 proposed multiple changes to the Delhi Municipal Corporation Act, 1957.
Highlighting the benefits of UAM, NDMC Vice-Chairperson Kuljeet Singh Chahal said that it may lead to a reduction of 30 percent to 50 percent in property tax (especially for older and self-occupied properties). The age factor will provide relief for older properties, and bifurcation will allow separate assessment of different portions of a property (such as shops and storage).
The system also enables self-assessment and online payment, making the process simpler and more transparent, while reducing disputes, he added.
Addressing traders at a meeting in Connaught Place, Chahal said the proposed system would also bring down the maximum property tax rate from 30 percent to 20 percent, offering a direct 10 percent relief to taxpayers in the NDMC area.
"The new method would replace the existing rental value-based system with a uniform unit area-based assessment, ensuring that similar properties are taxed equally and reducing disparities within the same locality," Chahal said.
Chahal assured traders that tax rates would not be increased arbitrarily and that detailed consultations would be held with their representatives before implementation to make the system more transparent and effective.
Meanwhile, traders said that while they welcome the introduction of the UAM, several concerns remain around its implementation, particularly regarding tax rates, enforcement powers, and fairness in recovery mechanisms.
Calling for parity in taxation, Atul Bhargava, President of the NDTA, said, "There should be 'one city, one tax'. The same rates applicable in MCD areas should be implemented in NDMC as well".
Raising objections to coercive enforcement, he said, "We do not want officials to come and seal shops. At most, they should attach the property or the rent for recovery. You cannot raise arbitrary demands and then seal a place if the person goes to court".
He added that most traders in Connaught Place are compliant taxpayers.
"We are GST-paying, income tax-paying businesses. Yet when officials come, they behave as if we are thieves," Bhargava said.
Explaining the benefits, Chahal said the introduction of an age factor would provide relief to older properties, while provisions for bifurcation would allow separate assessment of different portions of a property, such as shops and storage areas.
He added that the system would enable self-assessment and online payment, simplifying compliance and reducing disputes.
Bhargava further pointed out structural issues in property ownership.
"Earlier, plots in Connaught Place were sold in lots. Today, one plot may have multiple shops. If some shops default, the outstanding is imposed on the entire plot. Why should my shop be attached if I am paying regularly? Action should be taken only against defaulters," Bhargava said.
The vice-chairperson said the civic body collected Rs 1,045 crore in property tax last year and expects the figure to rise to around Rs 1,350 crore this year.
Chahal said under a special initiative to promote PNG connections, NDMC has waived road restoration charges for a period of three months for pipeline works carried out by Indraprastha Gas Limited (IGL).