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Relevat Provisions Of DMC ACT

 
   
The Main features of the relevant provisions of the DMC Act are as under:-

114. The property tax is leviable on lands and buildings in Delhi and shall consist of (a) a building tax; and (b) a vacant land tax.
114A. The building tax shall be equal to the rate of building tax as may be prescribed by the Corporation under section 114D multiplied by the annual value of the covered space of building determined under sub-section (1) of section 116E or section 116F.
114B. Provides for the rebate for senior citizens, women and physically challenged persons, in case of self-occupied residential buildings, which shall not be available for more than one residential building within the jurisdiction of National Capital Territory of Delhi.
114C. The vacant land tax in respect of any premises shall be equal to the rate of vacant land tax as may be specified by the Corporation under section 114E multiplied by the annual value of the vacant land determined under sub-section (3) of section 116E; provided that where there is any construction of the land and the area of plinth of such building is in excess of such percentage of the area of the plot, as may be prescribed in the bye-laws, no vacant land tax shall be levied.
114D. The base rate of property tax on buildings in Delhi shall be between a minimum of six percent and a maximum of twenty per cent of the annual value of such buildings, as may be specified by the Corporation from time to time; provided that the Corporation may, at any time, prescribe fixed rates between the minimum and the maximum rates of tax as aforesaid for different colonies or for different groups of buildings in such colonies; and further provided that the Corporation may introduce graduated rates of tax within the minimum and the maximum rates of tax as aforesaid on the basis of straight line system or any other system as may be specified by the Corporation.
114E. The rate of tax on vacant lands in Delhi shall be between a minimum of six per cent and a maximum of twenty per cent of the annual value of such lands, as may be specified by the Corporation from time to time.
115. Provides that property tax shall be levied on all vacant lands and buildings in Delhi except those (i) exclusively used for agricultural purposes; (ii) included in any village abadi occupied for residential purposes by any individual owner or his legal heir, subject to a maximum of one hundred square metres of covered space; (iii) exclusively used for the purpose of public worship; (iv) exclusively occupied and used, with the approval of the Corporation, for the purpose of public charity, as may be specified in the bye-laws or for the purpose of medical relief to, or education of the poor, free of charges; (v) exclusively used for the purpose of public burial or as cremation ground or any other place used for the disposal of the dead, duly registered under this Act; (vi) specifically notified for exemption by the Corporation as also so specified by the Archaeological Survey of India; (vi) exclusively owned by war widows, gallantry award winners in Defence Forces, Police and Para-military Forces as also civilians who have received bravery awards of the highest order from the Government including Annual Bravery Awards given by the President, subject to certain conditions; and (vii) owned by, or vested in the Corporation but not leased out or tented out and in respect of which the property tax, if levied, would, under the provisions of this Act, be leviable primarily on the Corporation.
115(3) The Corporation may levy on such vacant lands and covered space of buildings as are exempt from the property tax, service charge on such scale, as may be provided under this Act or as prescribed by the Corporation, provided that the service charge so levied shall not be less than seventy five per cent of the amount that would have been payable as property tax for the covered space of the building or the vacant land as referred to in section 114D or section 114E.
115A. Provides that every building and every vacant land shall be assessed as a single unit, except in the cases as provided thereunder.
116. Provides for constitution of Municipal Valuation Committee by the Government soon after commencement of DMC (Amendment) Act, 2003 and thereafter at the expiration of every third year.
116A. Provides for classification of vacant lands and buildings into colonies and groups and specification of base unit area values therefor.
116B. Provides for notification of classification of vacant lands and buildings into colonies and groups and specification of base unit area values therefor and factors for increase or decrease, by the Corporation, having regard to the recommendations of the Municipal Valuation Committee..
116C. Provides for objection to classification of vacant lands and buildings into colonies and groups and fixation of base unit area values and factors for increasing or decreasing such base unit area values by any owner or occupier of any vacant land or building in any ward in respect of which a public notice has been issued under Section 116B.
116D. Provides that subject to the provisions of section 169, the base unit area value of vacant land and the base unit area value of covered space of building in any group, as may be specified under sub-section (3) of section 116C, shall be final.
116E. Provides that the annual value of any covered space of building in any ward shall be the amount arrived at by multiplying the total area of such covered space of building by the final base unit area value of such covered space and the relevant factors, as referred to in clause (b) of sub-section (2) of section 116A. Explanation under this section provides that covered space in relation to a building, shall mean the total floor area in all the floor thereof, including the thickness of walls, and shall include the space of covered verandah and courtyard, gangway, garage, common service area, staircase, and balcony including any area projected beyond the plot boundary and such other space as may be prescribed.
116F. Provides that where any vacant land is exempted from property tax under any law for the time being in force, the annual value of any building erected on such land, which is in existence for more than one year and is not entitled to any exemption from such tax under this Act or any other law for the time being in force, shall be determined in accordance with the provisions of this chapter.
116G. Provides that a tax on vacant land or covered space of building or both, levied under this Act immediately before the date of coming into force of the DMC (Amendment) Act, 2003, shall, on coming into force of DMC (Amendment) Act, 2003, be deemed to be the tax on such vacant land or covered space of building or both, levied under this Act as amended by the DMC (Amendment) Act, 2003, and shall continue to be in force until such tax is revised in accordance with the provisions of this Act, as amended by the DMC (Amendment) Act, 2003.
116H. Provides that in the cases where the owner has already aid one time tax under some scheme in the past, the extent of the rateable value on the basis of which the one-time tax was paid shall be set off against the annual value calculated under the provisions of the DMC (Amendment) Act, 2003 and the tax liability shall be worked out on the basis of net annual value.
116-I. Provides that the base unit area value of vacant land and the base unit area value of covered space of building in respect of a specified group in a ward shall remain in force for a period of three years.
116. Provides that if for any reason the base unit area value of any vacant land or any covered space of building, in any group in any ward has not been revised on the completion of a period of three years from the date on which such base unit area values were last determined, it shall be lawful to increase or decrease the base unit area values according to the changes in the consumer price index of urban non-manual workers or such other suitable index, as the government may determine till such revision is made by the MVC and to realise the amount of property tax for such covered space of building ro vacant land on the basis of the revised base unit area values.
116K. Provides for appointment of a Hardship and Anomaly Committee.
119. Provides that the lands and buildings being properties of the Union shall be exempt from the property taxes specified in section 114, provided that nothing shall prevent the Corporation from levying any of the said taxes on such lands and buildings to which immediately before the 26th January, 1950, they were liable or treated as liable, so long as that tax continues to be levied by the Corporation on other lands and buildings.
120. Provides that primarily, the property tax shall be leviable upon the owner of the land or building; (b) the liability shall be joint and several, in case of joint owners of a single unit of assessment; (c) the tax shall be recovered from the occupier or occupiers, in case of the land or building which is not self-occupied and where the owner is constrained by any law, order of the Government or order of a court from recovering the tax due; (d) the tax shall be leviable upon the transferee or the licensee in respect of any land or building which is the property of the Corporation and possession of which has been delivered under any agreement or licensing arrangement; (e) the tax shall be leviable on the transferee, in respect of any land or building being the property of the Union, the possession of which has been delivered in pursuance of section 20 of the Displaced Persons (Compensation and Rehabilitation) Act, 1954. For the purpose of this section, tenant shall include any person deriving title to the land or the building erected upon such land, from the tenant, whether by operation of law or by transfer inter vivos.
120A. Provides for levy of service charge in slums and resettlement colonies, to the extent not exceeding the actual cost of providing the services as may be specified by the Corporation.
120B. Provides for grant for the group housing society, resident welfare association, market association or industrial estate.
122. Provides for recovery of property taxes from occupiers, in case of failure to recover the same from the person primarily liable therefor under Section 120.
123. Provides that property taxes due under this Act in respect of any land or building , shall subject to the prior payment of the land revenue, if any, due to the Government thereon, be a first charge.
123A. Provides that the Commissioner shall, with a view to determining the annual value of vacant land and covered space of building in any ward and the person primarily liable for the payment of property tax, by public notice, or by notice, in writing, require the owner and the occupier of such vacant land or covered space of building or any portion thereof, including such owner or the person computing the tax due under the provisions of section 123B, to furnish a return in such form as may be prescribed by bye-laws and within such time, not being less than thirty days from the date of publication of such notice, as may be specified therein, containing the information provided therein. Whoever omits to comply with such requisition, shall in addition to any penalty to which he may be liable, be precluded from objecting to any assessment made by the Commissioner in respect of such land or building.
123B. Provides that any owner of any vacant land or covered space of building or any other person liable to pay the property tax or any occupier in the absence of such owner or person, shall file a return of self-assessment within sixty days of the coming into force of DMC (Amendment) Act, 2003, (2) shall, thereafter, file the annual return only in those cases where there is a change in the position as compared to the previous return, within three months after the end of the financial year in which the change in position has occurred. (3) Such person shall compute the tax due under section 114A or section 114C, as the case may be, and pay the same in equated quarterly instalment by the 30th day of June, 30th day of September, 31st day of December and 31st day of March of the financial year for which tax is to be paid. In the event of tax being paid in one lump sum for the financial year by the 30th day of June of the financial year, rebate of such percentage not exceeding fifteen per cent as may be notified by the Corporation, of the total tax amount due shall be allowed; (4) Such owner or person liable to pay property tax who computes such property tax under this section, shall on such computation, pay the property tax on such vacant or covered space of building, as the case may be, together with interest, if any, payable under the provisions of this Act on (a) any new building or existing building which has not been assessed; or (b) any existing building which has been redeveloped or substantially altered or improved after the last assessment, but has not been subjected to revision of assessment consequent upon such redevelopment or alteration or improvement as the case may be.; (5) such owner or person shall furnish to the Commissioner a return of self-assessment in such form and in such manner, as may be specified in the bye-laws and every such return shall be accompanied by proof of payment of property tax and interest, if any; (6) In the case of any new building for which an occupancy certificate has been granted, or which has been occupied after the coming into force of the DMC (Amendment) Act, 2003, such payment shall be made, and such return shall be furnished, within thirty days of the expiry of the quarter in which such occupancy certificate is granted or such building is occupied, whichever is earlier. Explanation For the removal of doubt, it is declared that occupancy certificate may be provisional or final and may be for the whole or any part of the building and occupancy may be of the whole or any part of the building. (8) If any owner or other person as aforesaid, liable to pay the property tax under this Act, fails to pay the same together with interest thereon, if any, in accordance with the provisions of this section, he shall, without prejudice to any other action to which he may be subject, be deemed to be a defaulter in respect of such property tax, or interest, or both, remaining unpaid, and all the provisions of this act applicable to such defaulter shall apply to him accordingly. (9) If the payment on self-assessment under this section is found to be less than that of the amount payable by the assessee, the assessee shall pay the difference within two months from the date of final assessment, failing which recovery shall be made in accordance with the provisions of this Act, but, after the final assessment, if it is found that the assessee has paid excess amount, such excess amount shall be refunded; Provided that in any case where the amount of tax determined in the final assessment is more than the amount of tax paid under self-assessment, and the difference in the amount of tax is, in the opinion of the Commissioner, the result of wilful suppression of facts as defined in the bye-laws, the Commissioner may levy a penalty not exceeding thirty per cent of such difference in the tax besides the interest thereon; and levy of such penalty shall be in addition to any other punishment provided for under this Act; the procedure for sending of notice, hearing of objection and determination of tax and penalties shall be such as may be specified in the bye-laws; (10) Where no notice is sent by the Commissioner under section 123C within twelve months after the year to which such self-assessment relates, such self-assessment shall be regarded as assessment made under this Act; provided that in any case where there has been wilful suppression of facts, penalty upto thirty per cent of the tax due may be imposed.
123C. Provides for revision to be made at any time in the annual value of any vacant land or covered space of building or any portion thereof in the cases (i) where the nature of use changes; or (ii) where the nature of occupancy changes; or (iii) where a new building is erected or an existing building is re-developed or substantially altered or improved during the period the annual value remains in force; or (iv) where on written application of the owner or the person liable to pay the property tax, it is established that during the period the annual value is in force, such value has been reduced by reason of any substantial demolition or has suffered depreciation on account of any accident or any calamity proved to the satisfaction of the Commissioner to have been beyond the control of such owner or person; or (v) where any vacant land or covered space of building or portion thereof is acquired by purchase or otherwise by the Central Government or the Government or the Corporation, or (vi) where any vacant land or covered space of building or portion thereof is sold or otherwise transferred to the Central Government or the Government or the Corporation; or (vii) where upon the acquisition or transfer of a part of any vacant land or covered space of building, a residual portion remains, or (viii) where it becomes necessary so to do for any other reason to be recorded in writing; (7) An appeal shall lie against an order of revision of annual value under sub-section (6) to an officer appointed by the Government, within forty five days from the date of receipt of the order.
123D. Commissioner may, at any time (a) make suo-motu, an assessment in any case where a return on the basis of self-assessment has not been filed; (b) revise any assessment where the information furnished in the return of self-assessment is found to be incorrect; (c) reopen any assessment even after the period of one year in any case where it has been detected that there is wilful suppression of information; and (d) impose a penalty not exceeding thirty per cent of the difference in tax arising from non-filing of a return in time, giving wrong information or wilful suppression of facts.
124. Provides for the Corporation to maintain a Municipal Assessment Book and make it available for inspection, free of charge, through electronic media or otherwise;
125. Provides for assignment of Property Identification Code by which any premises or part thereof shall be known.
128. Provides that where title of any person primarily liable for payment of property taxes on any land or building, is transferred, the person whose title is transferred and the person to whom the same is transferred, shall give notice of such transfer in writing to the Commissioner, within three months; and in case of death of any person primarily liable, the person on whom the title of the deceased devolves, shall give notice of such devolution within six months from the date of the death of the deceased.
129. Provides for giving notice in writing to the Commissioner within fifteen days of completion of construction of a new building, re-building, enlargement or re-occupancy of any building or occupation of such building, whichever first occurs, or from the enlargement or re-occupation of such building.
130. Provides for a notice in writing to Commissioner, when any building or any portion of a building which is liable to the payment of property taxes, is demolished or removed.
152A. Provides for punishment for wilful default in payment of property tax, furnishing wrong information in return of assessment, etc., without prejudice to any other penalty provisions under the Act to which he may be subject, (a) where the amount of tax sought to be evaded exceeds tent lakh rupees with rigorous imprisonment for a term which shall not be less than three months but which may extend up to seven years and with fine of not less than fifty per cent of the amount fo tax evaded; and (b) in any other case, with rigorous imprisonment for a term which shall not be less than one month but which may extend up to three years, and with fine of not less than fifty per cent of the amount of tax evaded.
156A. Provides that if the person liable for payment of property tax does not file a return of self assessment within sixty days of the coming into force of the DMC (Amendment) Act, 2003 or does not pay the amount due within the due date, such sum together with all costs and penalty may be recovered under a warrant, by distress and sale of the movable property, or the attachment and sale of the immovable property, of the defaulter.
158. provides for disposal of distrained property and attachment and sale of immovable property by public auction, unless the amount mentioned in the warrant is forthwith paid.
160. Provides that any sum due on account of a tax may be recovered by a suit in any court of competent jurisdiction.
162. Provides for recovery of the amount of property tax from any occupiers of the building.
169. Provides for an appeal against the levy or assessment or revision of assessment of any tax which shall lie to the Municipal Taxation Tribunal constituted under this section, provided that full amount of property tax shall be paid before filing any appeal.
170. Provides for the conditions under which the appeal shall be heard or determined under section 169.
171. Provides that the order of Municipal Taxation Tribunal shall be final, provided that it shall be lawful for the MTT, upon application ro on its own motion, to review any order within three months from the date of the order.
172. Provides that Commissioner may, without giving any previous notice, enter upon and make an inspection of any land or building for determining the annual value.
177. Provides that the Corporation may, by resolution passed in this behalf, exempt either wholly or in part from the payment of any tax levied under this Act, any class of persons or any class of property or goods.