Payment and recovery of taxesState · Delhi

Section 152 of The Delhi Municipal Corporation Act, 1957

Time and manner of payment of taxes.

1[152. Time and manner of payment of taxes.—(1) Save as otherwise provided in this Act, any tax levied under this Act shall be payable on such dates, in such number of installments and in such manner as may be determined by bye-laws made in this behalf: Provided that if, on the coming into force of the Delhi Municipal Corporation (Amendment) Act, 2003, there is any increase in the amount of property tax which was being paid or was payable immediately before the coming into force of the Delhi Municipal Corporation (Amendment) Act, 2003, the difference in the amount of property tax in excess of fifty per cent above the tax being paid or being payable, shall be given effect to by stages covering a period of three years by dividing the amount of such increase in the property tax by three, the quotient being added to the amount of property tax which was payable immediately before the coming into force of the Delhi Municipal Corporation (Amendment) Act, 2003, and to the amount of property tax which shall be payable respectively in each of the remaining two successive years after such addition.

(2)Where any person liable for the payment of property tax under this Act has failed to pay--
1. (a)such tax by the date as specified in sub-section (3) of section 123 B; or
2. (b)the arrear of tax, interest and penalty, if any, and any other sum in the nature of tax up to the 31st March of the preceding financial year; he shall be liable to pay simple interest at the rate of one per cent for every month or part of the month comprising the period from the expiry of the due date, till the amount is actually paid.]

Summary

It states that taxes must be paid on dates and in installments determined by specific municipal bye-laws.
This phased increase divides the excess amount into three equal parts, adding one part to the base tax bill each successive year to soften the financial impact.
If a person fails to pay their property tax by the deadline, they will be charged a penalty of one percent simple interest for every month or part of a month they are late.

Practical examples

1In 2004, Ravi's property tax jumps from 10,000 rupees to 22,000 rupees due to the new amendment. Since the increase of 12,000 rupees is more than 50 percent of his old tax, the first 50 percent increase sets his base to 15,000. The remaining 7,000 rupee increase is divided by three, so his tax goes up by about 2,333 rupees each year for the next three years.

2Sunita forgets to pay her property tax by the March 31, 2025 deadline. She finally pays the arrear on May 15, 2025. Because she is late, she must pay a simple interest of one percent per month for two months (April and a part of May) on top of her original tax bill.

FAQ

1. When are taxes supposed to be paid under section 152 of the Delhi Municipal Corporation Act?

Section 152 of the Delhi Municipal Corporation Act states that taxes must be paid on the dates, in the installments, and in the manner set by the local bye-laws.

2. How does section 152 of the municipal tax law handle large increases in property tax?

Under section 152 of the municipal tax law, if a property tax increases by more than fifty percent over the old amount, the excess amount is phased in gradually over a period of three years.

3. What happens if I miss the property tax deadline under section 152 of the Delhi city rules?

If you fail to pay by the date specified in section 123B, or miss paying arrears by the 31st of March of the previous financial year, section 152 of the Delhi city rules says you must pay a simple interest of one percent for every month or part of a month that you are late.

Test yourself

Q1.Under Section 152 of The Delhi Municipal Corporation Act, 1957, what is the interest rate applied if a person fails to pay their property tax by the specified due date?

Q2.Under Section 152 of The Delhi Municipal Corporation Act, 1957, how is an excessive property tax increase resulting from the 2003 amendment managed?

Q3.Under Section 152 of The Delhi Municipal Corporation Act, 1957, the penalty interest for late payment triggers if tax is not paid by the date specified in Section 123B. Based on Section 123B, what is the required method and timeline for this payment?

Q4.Under Section 152 of The Delhi Municipal Corporation Act, 1957, what determines the general rules for the dates and number of installments for paying taxes?

151PreviousSection 151 Supplementary taxation.152ANextSection 152A Punishment for wilful default in payment of property tax, furnishing wrong information in return of assessment, etc.

←Section 151 Section 152A→