![\"Rates](\"https:\/\/static.toiimg.com\/thumb\/msid-131753409,imgsize-574246,width-400,height-225,resizemode-72\/file-photo-pkl-property-taxjpg.jpg\" "\\"Photo")
<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\nNew Delhi: New Delhi Municipal Council (NDMC) is planning to roll out a comprehensive property tax assessment system based on the unit area method (UAM) within the next three months.The council has sent the bylaws outlining the implementation process to the Union home ministry for notification. The bylaws were framed following amendments to NDMC Act 1994, notified in May 2026 under Jan Vishwas (Amendment of Provisions) Bill 2026.Around 7% of the properties in the NDMC areas continue to be assessed under the older rateable value method, while the remaining properties are already covered under UAM, resulting in two parallel taxation systems.Officials said the reform was likely to reduce the upper property tax slab from 30% to 20% while enabling broader rationalisation of the taxation structure. Tax rates are expected to range between 10% and 20% of the annual value of properties.\u201cOnce the bylaws are notified, a municipal valuation committee (MVC) will be constituted to recommend the parameters on the basis of which property tax will be calculated. Since most NDMC areas enjoy upscale civic infrastructure, various factors may be considered while determining tax liabilities,\u201d an official said.After the valuation formula is finalised, objections and suggestions will be invited from the public. A hardship and anomaly committee will also be formed to address grievances related to property tax assessments and the new methodology.\u201cProperty owners who have not paid taxes can take advantage of the new system once it is implemented, likely by the end of the year,\u201d an official said.However, residents and traders remain sceptical about the timeline. \u201cMVC itself takes months to finalise the formula, and thereafter, public objections and grievances will have to be addressed,\u201d said a trader.Officials said earlier attempts to fully introduce UAM couldn\u2019t be successful as NDMC Act mandated assessment based on annual rental value, calling for amendments to the parent legislation.\u201cThe reform will reduce disputes, improve transparency and bring greater predictability to tax liabilities. It will also eliminate what is described as the pre-Independence-era ‘property tax inspector raj\u2019,\u201d said an official.NDMC collected Rs 1,396.8 crore in property tax during 2025-26, registering a growth of 34.2% over the previous financial year. For 2026-27, the council has set a target of Rs 1,290 crore as it plans to switch fully to the standardised UAM system.<\/div>\n