Delhi Municipal Corporation Falls Short of Property Tax Target by ₹400 Crore
MCD collects ₹3,116 crore in property tax, falls ₹400 cr short of target
Hindustan Times
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In the fiscal year 2025-26, the Municipal Corporation of Delhi collected ₹3,116 crore in property tax, falling short of its ₹3,500 crore target by ₹400 crore. Despite a 46% increase in revenue from the previous year, many properties remain untaxed, highlighting a significant gap in tax compliance.
- 01MCD collected ₹3,116 crore in property tax, missing the target by ₹400 crore.
- 02The revenue represents a 46% increase from the previous year's collection.
- 03Only a fraction of properties in Delhi are paying taxes, indicating low compliance.
- 04The SUNIYO scheme helped collect ₹1,236 crore from taxpayers, with many new participants.
- 05The New Delhi Municipal Council (NDMC) reported a rise in collections to ₹1,396.82 crore.
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The Municipal Corporation of Delhi (MCD) reported a collection of ₹3,116 crore in property tax for the fiscal year 2025-26, falling short of its target of ₹3,500 crore by ₹400 crore. This figure marks a 46% increase compared to the ₹2,132.89 crore collected from 1,133,161 taxpayers in the previous year. However, a significant number of properties in Delhi remain untaxed, indicating a compliance issue. The MCD had initially set a higher target of ₹4,000 crore for 2024-25, which was later revised downwards. The MCD's efforts included the SUNIYO scheme, which allowed property owners to waive penalties by settling outstanding dues. This initiative resulted in collections of ₹1,236 crore from 206,861 taxpayers, including ₹242.87 crore from residential properties and ₹993.52 crore from non-residential properties. The New Delhi Municipal Council (NDMC) also reported an increase in property tax collections, totaling ₹1,396.82 crore in 2025-26, up from ₹1,040.33 crore the previous year, as they aim to improve tax compliance without causing undue hardship to citizens.
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The shortfall in property tax collection may affect the MCD's ability to fund essential services and infrastructure projects in Delhi. Increased compliance could lead to better public services and infrastructure development.
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