NDMC property tax relief for traders in prominent Delhi markets such as Khan Market, Connaught Place, Sarojini Nagar and Janpath is likely to be delayed by around six months as the proposed changes await approval through multiple government departments.
The proposed system is intended to simplify property tax assessment in the New Delhi Municipal Council area and address complaints over high rates and complex calculation methods. However, traders now face uncertainty over payments under the existing system while the revised framework moves through the approval process.
According to the report, the proposed draft is expected to be cleared by the Delhi government’s law department before being sent to the Union Ministry of Housing and Urban Affairs. After that, the proposal will undergo a public process for suggestions and objections. Final approval will then be required from the Ministry of Home Affairs, a process that the NDMC leadership has indicated could take at least six months.
The issue was raised at a recent meeting chaired by Member of Parliament Bansuri Swaraj, which was attended by the NDMC chairperson and representatives of traders from Khan Market and Sarojini Nagar. Trader representatives sought the early introduction of a new property tax assessment system and revised rates.
Traders have claimed that property tax rates in the NDMC area are around 15 times higher than those in areas administered by the Municipal Corporation of Delhi. They are seeking a reduction that would bring the rates closer to twice the MCD level, along with a more predictable method of assessment. These comparisons and demands were presented by trader representatives and are not independently quantified in the supplied report.
The proposed changes are linked to the Jan Vishwas (Amendment of Provisions) Act, 2026, which the report says seeks to improve the ease of doing business, decriminalise certain minor business and administrative offences, and amend the New Delhi Municipal Council Act, 1994. The intended framework would replace the existing complex assessment formula with a more transparent unit-area or practical rate-based system.
For businesses, the immediate concern is the treatment of property tax during the transition. Traders have asked the NDMC either to defer the current year’s payment until the new system is implemented or to allow payment in instalments. They fear that paying under the current rates could create disputes over later adjustments or refunds if the revised framework is introduced the following year.
The proposed reform is also expected to clarify the rules governing assessments and reduce repeated administrative proceedings and legal disputes between traders and the council. The report says the revised system is aimed at reducing the scope for discretionary assessments and easing compliance for businesses in the council’s high-value commercial areas.
The proposal must still pass through the Delhi government’s law department, the Union housing and urban affairs ministry’s public consultation process and final approval from the home ministry before implementation. Until those steps are completed, property tax payments in the NDMC area remain governed by the existing system.
