The New Delhi Municipal Council (NDMC) is seeking public feedback on its proposed Property Tax Bye-Laws, 2026, which would introduce the Unit Area Method and expand digital self-assessment for properties in the council area. Residents, traders and market associations have until October 23 to submit objections and suggestions.
The draft bye-laws were published on September 24 in Hindi and English newspapers and uploaded on the NDMC website. The council has since intensified consultations with resident welfare associations, traders and market bodies across New Delhi before moving ahead with the statutory process for finalising the framework.
NDMC officials have held discussions with resident welfare associations in Golf Links, Hanuman Road and Babar Road Colony, as well as the Khan Market Welfare Association. Trade organisations, including the New Delhi Traders Association and associations representing Khan Market and Bengali Market, have also been consulted.
The proposed Unit Area Method is intended to make property tax assessment more transparent and uniform. Under the framework, tax calculations would take account of factors including property age, plot size, covered area, occupancy status and whether a property is residential or commercial.
The consultations have also brought attention to the practical effect of the proposed valuation factors on tax liabilities. Stakeholders have raised questions about rebates, depreciation for older buildings and the way different categories of properties would be assessed. These issues are particularly relevant in an area where older buildings, established commercial markets and high-value residential neighbourhoods exist within the same municipal jurisdiction.
The draft framework also seeks to strengthen online self-assessment, simplify tax calculations and improve digital payment facilities. NDMC has indicated that these changes are intended to reduce disputes between taxpayers and the administration by making the assessment process easier to understand and access.
A tax department official said wider public participation was essential to developing a fair and accessible taxation system. The council will examine the objections and suggestions received before proceeding with the statutory process required to finalise the bye-laws.
Questions concerning the valuation methodology may also be referred to the Municipal Valuation Committee wherever applicable. The immediate public deadline is October 23, after which the feedback will form part of NDMC’s review of the proposed property tax framework.
