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Delhi civic body introduces digital portal to streamline property tax collection

Synopsis

The Municipal Corporation of Delhi (MCD) has launched a digital portal for zonal inspectors to submit daily inspection reports, aiming to improve property tax collection and expand the taxpayer base. The portal will track new taxpayers, property visits, and support weekly reviews of inspectors. To enhance transparency and continuity, the reports will include property details and issues impacting tax payments. This year, MCD has set ambitious collection goals and geo-tagged thousands of properties, with plans to make geo-tagging mandatory from the next financial year. MCD's recent initiatives address previous shortfalls in tax collection, aiming for a more efficient system.

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The Municipal Corporation of Delhi (MCD) has launched a new portal requiring zonal inspectors to submit daily digital reports on inspections they conduct, covering data on new taxpayers and properties they visit. This initiative aims to enhance property tax collection and broaden the taxpayer base. The collected data will be processed further to generate information and support tax collection efforts. Additionally, MCD plans to conduct a weekly review of zonal inspectors, assessing them based on the reports or data they submit online.

An official explained that the digital reports would offer comprehensive information about the properties, including location details and issues contributing to non-payment of taxes. The digital format will also allow easy continuity in case a zonal inspector is reassigned to a different zone, enabling the new officer to follow up smoothly. The official noted that while accountability measures for field staff were already established, the portal would further streamline the process.

Currently, out of approximately 1.3 million registered taxpayers, 1.02 million have submitted their taxes. The civic body reports having collected INR 1,781 crore in taxes to date, reflecting a 16% increase compared to the same period last year. MCD has set a target to collect INR 4,000 crore in property tax this year. To boost efficiency, over 400,000 properties from the total 1.33 million registered with Unique Property Identification Code (UPIC) numbers by last month have been geo-tagged.

Initially, geo-tagging was required for those looking to benefit from advance tax payment; however, this requirement was later removed. The official noted that the response to geo-tagging has been lukewarm, with many claiming they are unaware of the process. A circular has been issued to inform that geo-tagging will become mandatory from the next financial year (2025-26), with no exemptions.

To encourage advance property tax payments for the current financial year, MCD conducted over 800 camps in June, enabling thousands of taxpayers to pay their taxes in advance. The official added that a similar effort would be repeated at the end of the financial year. In the 2023-24 fiscal year, MCD experienced an 11.5% decline in property tax collection compared to the prior year. The total collected amounted to INR 2,137 crore, a reduction of INR 280 crore from the INR 2,417 crore collected in 2022-23.

The number of taxpayers also fell from 1.33 million in 2022-23 to 1.26 million in 2023-24. Officials attributed the higher collections in 2022-23 to the Samriddhi scheme, which contributed an additional INR 400 crore in revenue. However, the scheme was discontinued in subsequent years, and no plans for its revival this year have been announced.

MCD's digital portal marks a significant step toward modernising property tax collection in Delhi. By digitising inspection records and mandating geo-tagging in the near future, the civic body aims to streamline processes, improve accountability, and enhance revenue generation. The initiatives reflect MCD's proactive approach to addressing past collection challenges while preparing for a more sustainable and transparent tax administration. With these measures, MCD hopes to broaden the taxpayer base and ensure more consistent compliance, paving the way for improved civic services in Delhi.

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