Revamping Property Tax: NDMC's New Legislative Agenda

The Jan Vishwas (Amendment of Provisions) Bill, 2026, proposes a new property tax framework in NDMC areas, enhancing enforcement and easing penalties for minor offences. It introduces changes like the Property Identification Code and updates to the NDMC and MCD Acts for better compliance.

The government's new legislative proposal aims to overhaul the property tax framework in the New Delhi Municipal Council (NDMC) areas. Unveiled in the Lok Sabha by Minister Jitin Prasada, the Jan Vishwas (Amendment of Provisions) Bill, 2026 targets streamlining tax structures and tightening enforcement against violations.

The bill proposes replacing section 61 of the current NDMC Act, 1994, with a two-component tax system comprising building and vacant land taxes. A Municipal Valuation Committee will be established every three years to assist in property classification, base value allocation, and tax revision. This new system ensures periodic adjustments linked to inflation if revisions are delayed.

One key change includes a mandatory Property Identification Code for properties to facilitate tax payments and civic services access. Additionally, service charges can be levied at 75% of the applicable tax on Union government properties in NDMC areas, aiming to resolve financial issues. To enhance compliance, the bill updates penalties and timelines under the Delhi Municipal Corporation Act, 1957, aligning with new criminal codes.

(With inputs from agencies.)