MCD refutes property tax exemption reports

The Municipal Corporation of Delhi (MCD) has issued a clarification regarding reports circulating on various social media platforms that claim property tax exemption for Delhi residents.

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In a statement, the MC confirmed that there is no exemption or relaxation on property tax payments. There are certain misleading reports and discussions on social media.

The MC emphasised that all property owners and occupiers are still obligated to pay property tax as per the existing laws. The clarification came in response to several public inquiries asking whether they are exempt from the tax.

“Property tax remains payable by all occupiers and owners,” the MC said, reaffirming that there had been no changes in the tax structure.

Property tax is a significant revenue source for the MC, contributing about 25 per cent of its total earnings. The tax structure for the fiscal year 2024-25 was finalised in February 2024 during the budget process and taxes for FY 2025-26 were decided in a meeting held on February 13, 2025.

The MC also highlighted its ongoing financial challenges with over Rs 14,000 crore outstanding dues, including salaries of municipal employees and payments of contractors. The corporation pointed out that without financial stability, it would struggle to provide essential civic services such as sanitation, road maintenance and drainage systems.

Given these financial constraints, the MC stressed that there was no legal or financial basis for waiving property tax payments. It urged property owners and occupiers to file their property tax returns on a self-assessment basis by March 31 to avoid penalties.