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Residents within the New Delhi Municipal Council (NDMC) jurisdiction are likely to come under a uniform property tax regime in the coming weeks as the civic body prepares to implement a revised assessment framework based entirely on the Unit Area Method (UAM). The move follows amendments to the NDMC Act, 1994, under the Jan Vishwas (Amendment of Provisions) Bill, 2026. NDMC has completed technical preparations, updated its online property tax platform and approved the required bye-laws. The reform will replace the decades-old rateable value assessment system still applicable to a small section of properties and bring all properties under a single taxation framework. Officials said the change is intended to improve transparency, reduce disputes and create a more predictable method of calculating property tax for property owners in the NDMC area.
The New Delhi Municipal Council (NDMC) is preparing to roll out a uniform property tax regime across its jurisdiction, replacing the remaining instances of the decades-old rateable value assessment system with the Unit Area Method (UAM). The transition is expected to be implemented in the coming weeks after the civic body completes the final procedural requirements, including the constitution of a Municipal Valuation Committee.
According to officials, NDMC has already approved the necessary bye-laws, upgraded its online property tax platform and completed testing in collaboration with the National Informatics Centre (NIC). These preparations pave the way for the implementation of amendments introduced through the Jan Vishwas (Amendment of Provisions) Bill, 2026, which mandates a single assessment framework for all properties within the NDMC area.
The reform marks a significant shift in the way property tax is assessed in Lutyens' Delhi and other NDMC-administered areas. Until now, a small proportion of properties continued to be taxed under the older rateable value method, which relied on the estimated rental value of a property. The majority of properties, however, were already assessed under the Unit Area Method, resulting in two parallel systems operating within the same jurisdiction. Officials indicated that this disparity had led to assessment-related disputes and litigation over the years. Approximately five per cent of properties remained under the older mechanism.
Under the new framework, property tax liability will no longer be linked to estimated rental values. Instead, assessments will be based on five objective parameters: the built-up area of the property, its location, the category of the colony, the nature of usage and whether the property is residential or commercial. Officials said the adoption of standardised criteria is intended to make tax calculations more transparent and easier for property owners to understand.
The Jan Vishwas amendments also provide for the creation of a Municipal Valuation Committee, which will recommend the base value for vacant land and buildings and advise on the methodology for determining and revising property tax. The committee will comprise between two and six members, including the NDMC Chairperson. Once constituted, it will play a central role in operationalising the revised taxation framework.
Property tax remains one of NDMC's principal sources of revenue, covering thousands of private properties as well as eligible government-owned assets within its jurisdiction. Civic officials said the transition to a uniform assessment system is expected to simplify tax administration, reduce ambiguities and provide greater certainty for property owners. The move also aligns NDMC's property tax framework more closely with assessment systems already used in other parts of Delhi, while establishing a single methodology for all properties within the council's limits.
Source - PTI
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