Delhi LG unveils ‘SAMRIDDHI 2022-23’: Here’s all you need to know

In what could be seen as a significant move for the benefits of lakhs of residential and commercial property owners, Delhi Lieutenant Governor Vinai Kumar Saxena launched the ‘SAMRIDDHI 2022-23’ which is a one-time property tax amnesty scheme.

SAMRIDDHI, which stands for Strengthening and Augmentation of Municipal Revenue for Infrastructure Development in Delhi will begin on October 26 and end on March 31, 2023, with no extensions.

What is SAMRIDDHI 2022-23?

The SAMRIDDHI 2022-23 scheme will allow residential property owners to pay only the current and previous five years' principal property tax. According to an official statement, commercial property owners can pay the principal amount for the last six years and receive a waiver on past pending dues, including penalty and interest.

Tax liability is waived, which means more money in the hands of taxpayers and more revenue for MCD. The new amnesty scheme will further increase the tax base and act as an enabler for MCD to build a proper tax database by being more pragmatic about the enforcement of its long-pending tax dues.

The tax amnesty programme includes a ‘One Plus Five’ option for residential properties and a ‘One Plus Six’ option for non-residential properties.

Under 'One Plus Five,' taxpayers of residential properties are required to pay the principal amount of property tax for the current year and the previous five years (i.e. FY 2022-23 + FYs 2017-18 to 2021-22), after which 100 per cent interest and penalty on the outstanding tax amount is exempted and all previous dues prior to 2017-18 are waived.

In the same way, with the 'One Plus Six' scheme for non-residential properties, property owners must pay the principal amount of property tax for the current year and the previous six years (i.e. FY 2022-23 + FYs 2016-17 to 2021-22), after which 100 per cent interest and penalty on the outstanding tax amount is exempted and all previous dues prior to 2016-17 are completely waived.

If a taxpayer fails to settle his tax debts by March 31, 2023, he will be obligated to pay all tax debts, including interest and penalties, since 2004 or the year in question, and will not be eligible for a waiver.

Coercive measures to collect tax debts will be implemented against such defaulters from April 1 of the following year.

Any taxpayer who has already paid dues for any of the years 2017-18 or 2016-17 but whose payment has not been recorded in MCD tax data must submit proof of payment so that the tax database can be updated.

Cases where the principal, interest, and penalty have already been paid prior to the launch of the scheme will not be reassessed and reopened.

Also read: Virat Kohli’s match winning knock against Pakistan: Key lessons to learn