Property taxesState · Delhi

Section 122 of The Delhi Municipal Corporation Act, 1957 in hindi

(1)On the failure to recover any sum due on account of property taxes in respect of any land or building from the person primarily liable therefor under section 120, the Commissioner shall recover from every occupier of such land or building by attachment, in accordance with section 162 of the rent payable by such occupier, a portion of the total sum due which bears, as nearly as may be, the same proportion to that sum as the rent annually payable by such occupier bears to the total amount of rent annually payable in respect of the whole of the land or building.
(2)An occupier from whom any sum is recovered under sub-section (1) shall be entitled to be reimbursed by the person primarily liable for the payment, and may in addition to having recourse to other remedies that may be open to him, deduct the amount so recovered from the amount of any rent from time to time becoming due from him to such person.

Summary

This section allows the municipal authority to collect unpaid property taxes directly from a tenant by claiming their rent payments.
The amount demanded from a single tenant is limited to a fair share based on how much of the total building rent they pay.
Any tenant who pays this tax on behalf of the owner is legally allowed to deduct that amount from their future rent.
The collection is enforced by legally attaching the rent so the tenant must pay the government instead of the landlord.

Practical examples

1Rahul rents a flat in a building owned by Amit. Amit fails to pay his property taxes for the year. The Commissioner serves a notice to Rahul, requiring him to pay his 15,000 rupees monthly rent directly to the municipal authority until Amit's tax debt is cleared.

2Priya occupies a small shop in a large commercial complex and her rent makes up 10 percent of the total rent collected for the building. If the complex owner defaults on property taxes, the Commissioner can only demand up to 10 percent of the total tax owed from Priya's rent payments. Priya then deducts this payment from her next rent check to the owner.

FAQ

1. Can the municipality collect unpaid property taxes from a tenant under Section 122 of The Delhi Municipal Corporation Act, 1957?

Yes. Under Section 122 of The Delhi Municipal Corporation Act, 1957, the Commissioner can recover unpaid property taxes directly from the occupier or tenant by attaching the rent they normally pay to the owner.

2. Will a tenant lose money if they are forced to pay the owner's tax under Section 122 of The Delhi Municipal Corporation Act, 1957?

No. Section 122 of The Delhi Municipal Corporation Act, 1957 allows the tenant to reimburse themselves entirely by deducting the paid tax amount from the rent they owe to the property owner.

3. How much tax can be recovered from a single occupier under Section 122 of The Delhi Municipal Corporation Act, 1957?

Under Section 122 of The Delhi Municipal Corporation Act, 1957, the amount recovered from an occupier is strictly proportional to the share of the total rent that they pay for the property.

Test yourself

Q1.Under Section 122 of The Delhi Municipal Corporation Act, 1957, what specific funds belonging to the occupier does the Commissioner attach to recover unpaid taxes?

Q2.According to Section 122 of the 1957 Delhi Municipal Act, how does an occupier recover the money after paying the owner's property tax?

Q3.Under Section 122 of The Delhi Municipal Corporation Act, 1957, if a building has multiple tenants paying different rent amounts, how is the tax recovery divided among them?

Q4.What must happen before the Commissioner can target an occupier for tax recovery under Section 122 of The Delhi Municipal Corporation Act, 1957?

121PreviousSection 121 Apportionment of liability for property taxes when the premises assessed are let or sub-let.123NextSection 123 Property taxes a first charge on premises on which they are assessed.

←Section 121 Section 123→