Delhi to tax professionals; hikes rates on property
10 Dec 2009
The Municipal Corporation of Delhi has come up with a proposal to slap a 'professional tax' on workers living in Delhi and earning over Rs30,000 a month. The tax may be up to Rs200. The new tax proposals of the MCD in its budget for 2010-11 also include a five per cent hike in property tax rates.
MCD commissioner K S Mehra said the civic body can levy such a tax under the discretionary tax system. ''It will be applicable to all people who are in a profession, trade or employment,'' he said. The amount will vary from Rs100-Rs200, depending on the salary slab.
The MCD is seeking to raise Rs100 crore annually from this tax. Mehra sought to justify the proposal by saying that Gujarat, Kolkata and Chennai also imposed such a tax.
Mehra also proposed a five per cent increase in property tax in all categories and imposition of 20 per cent commercial tax on rented non-residential properties and high-end non-residential properties like three-star hotels, malls, air-conditioned gymnasiums and clubs having swimming pools, for which a special category will be created.
Residents of colonies coming under A to E categories (upscale and relatively exclusive) will pay 15 per cent tax instead of 10 per cent. For F to H categories, the rate will rise from 6 per cent to 11 per cent. For rented commercial properties, the MCD has raised the tax from 10 per cent to 20 per cent. The increase for self-occupied commercial properties is 5 per cent, from 10 per cent to 15 per cent.
On the professional tax front, besides wage earners, other categories that will be charged professional tax are dealers liable to pay VAT. For such dealers, those paying up to Rs25 lakh will be exempt. The highest slab under this category is Rs 2 crore and above, under which the dealers will have to pay Rs2,500 per annum.