The New Delhi Municipal Council (NDMC) has stepped up consultations with resident welfare associations and traders’ bodies on its proposed property tax bye-laws for 2026. The deadline for submitting objections and suggestions is October 23.
According to a statement issued on Wednesday, the draft rules propose introducing the Unit Area Method for property tax assessment. The civic body is seeking public feedback on the factors that would determine tax liability for residential and commercial properties.
Unit Area Method proposed for property tax assessment
The proposed NDMC property tax bye-laws 2026 focus on property valuation, building age and size, usage, occupancy status and classification of residential and commercial properties.
The NDMC Property Tax Department has held discussions with resident welfare associations representing Golf Links, Hanuman Road and Babar Road Colony, along with the Khan Market Welfare Association.
Trade bodies participating in the consultations include the New Delhi Traders Association, Khan Market Traders Association and Bengali Market Traders Association.
Stakeholders have been invited to submit suggestions on proposed rebates for eligible categories, depreciation for older buildings and the impact of different valuation factors on tax calculations.
The council aims to ensure that properties with similar characteristics receive fair assessments while generating sufficient revenue to deliver civic services.
NDMC seeks feedback on rebates and valuation factors
The consultations are intended to help the civic body understand how the proposed valuation framework could affect different property categories.
The draft rules seek to establish a clearer basis for calculating property tax by considering factors such as property size, age and use. The proposed rebates and depreciation provisions are also open to stakeholder feedback before the rules are finalised.
A senior official from the Tax Department said the council was engaging with residents, traders and other stakeholders to understand their concerns.
The official emphasised that public participation was essential to developing a transparent, equitable, simple and citizen-friendly property tax system. The council has urged stakeholders to submit their objections and suggestions before October 23.
Draft rules aim to simplify digital tax services
The proposed bye-laws have been framed under the NDMC Act, 1994, as amended by the Jan Vishwas Act, 2026.
They also seek to simplify online self-assessment, improve digital payment facilities and make property tax calculations easier to understand. These changes are intended to reduce the scope for disputes between taxpayers and the civic body.
After the consultation period closes, NDMC will examine the submissions and place relevant matters before the appropriate authorities for consideration.
Issues concerning valuation methods may also be referred to the Municipal Valuation Committee, wherever applicable.
The final framework will be shaped by the feedback received during the consultation process and the subsequent consideration of proposed changes by the relevant authorities.
