MCD in Delhi plans to introduce 2 taxes, making house construction more costly

New Delhi Building a house in East and South Delhi may soon become more expensive as the Delhi Municipal Corporation is considering imposing two additional charges. The proposal for compensation and regulatory fees for approving the map has been brought up in a House meeting. Currently, these charges do not apply in East and South Delhi.

File photo
File photo

Preparation of the New Charges    

According to the corporation’s proposal, fees will be applicable for the construction of houses on residential plots up to 250 square meters or larger. These fees will need to be paid for the approval of house and building construction maps in East and South Delhi. The compensation and regulatory charges will be based on the circle rate prescribed for A to H category plots in both areas. For residential plots up to 250 square meters, a compensation and regulatory charge of 0.05 percent of the circle rate per square meter will be required. For plots larger than 250 square meters, the fee increases to 0.10 percent. The corporation has also proposed similar fees for industrial areas, commercial areas, and agricultural land. The compensation and regulatory fee was implemented by the erstwhile North Delhi in November 2020, but not in the erstwhile East Delhi Municipal Corporation and the erstwhile South Delhi Municipal Corporation.

Corporation House Meeting Today

The Delhi Municipal Corporation House meeting is scheduled for today. Various proposals related to the corporation will be discussed in the meeting, which is expected to be contentious. Councilors from the ruling party and the opposition may clash over several issues. Congress councilors are expected to raise development concerns in the Corporation House.

Details of the Proposed Charges

According to the corporation’s proposal, the following charges will apply based on the category:

A category: Rs 387 per square meter

B category: Rs 122.76 per square meter

C category: Rs 79.92 per square meter

D category: Rs 63.84 per square meter

E category: Rs 35.04 per square meter

F category: Rs 28.32 per square meter

G category: Rs 23.10 per square meter

H category: Rs 11.64 per square meter

For residential plots larger than 250 square meters, the charges will be 0.10 percent of the circle rate for each category. These charges will apply in East and South Delhi.

Summary:

Delhi Municipal Corporation is proposing new compensation and regulatory fees for approving house and building construction maps in East and South Delhi.

These charges will apply to residential plots up to 250 square meters and larger.

The fees will be based on the circle rate prescribed for different categories of plots.

The compensation and regulatory charges will range from 0.05 percent to 0.10 percent of the circle rate per square meter.

The proposal will be discussed in the Corporation House meeting today, which is expected to be contentious.

https://delhibreakings.com/mcd-in-delhi-plans-to-introduce-2-taxes-making-house-construction-more-costly/