TAX NEWS - June 2010

MCD to launch criminal prosecution against tax defaulters

With owners of only about 30% of properties in the city paying tax to the Municipal Corporation of Delhi (MCD), the civic body today approved a proposal for launching criminal prosecution against defaulters.

"A provision is already there in the DMC Act for launchingcriminal prosecution proceedings against defaulters, but it was not being implemented. There was a confusion about who should take action -- the law department or the house taxdepartment," leader of MCD House Subhash Arya said.

"At the MCD meeting, we have passed the proposal under which the house tax department will prepare reports about defaulters and prosecution department will proceed with further action," he said.

The cash-strapped MCD is looking at various ways to increase its tax revenue.

The MCD has recorded an all-time high gross property tax collection of Rs1157 crore in the 2009-10 fiscal, with thenumber of taxpayers also reaching the highest-ever figure of 9.73 lakh.

However, officials say owners of an estimated 22 lakh properties in the city are not paying tax to the civic agency.

The tax collection for 2009-10 fiscal was nearly 250 crore less than the target of Rs1400 crore.

MCD has also roped in domestic mosquito breeding checkers to carry out a door-to-door survey to detect those staying out of the tax net.