New Delhi: While the rest of Delhi has moved to a simpler, more transparent ‘unit area method’ of property tax calculation, the New Delhi Municipal Council on Tuesday once again asked residents to verify their house tax assessments and contest discrepancies under the old system, which is set for a phase-out.
The civic body has released its latest assessment list based on the rateable value method.
Even though Parliament has cleared the Jan Vishwas (Amendment of Provisions) Act, 2026, which enables NDMC to adopt the unit area method (UAM)—a system already in use across areas governed by the Municipal Corporation of Delhi since 2004—the NDMC is still in the process of switching over to the new system, officials said.
Under UAM, property tax is calculated using clear, fixed parameters such as the size of the property, its use, age, and location, making the process more predictable and easier for taxpayers to understand.
In NDMC’s case, taxes are calculated based on a dual system involving estimates of rental value, property records, and ground surveys.
“We are in the process of switching over to the unit area method within this financial year. Until it is implemented, the existing system will continue,” a senior NDMC official said.
A public notice issued by NDMC said the assessment list for 2026–27 is available for inspection on the 9th floor of Palika Kendra and can also be accessed online. Property owners can file objections either digitally or in person within the stipulated period.
Over the last few years, the archaic tax system has been at the centre of a tussle between property owners, occupiers, and the civic body, leading to sealing drives in areas such as Connaught Place, Khan Market, Gole Market, and KG Marg.
Atul Bhargava, New Delhi Traders Association president, said, “The current system allows officials to act arbitrarily and leaves room for corruption. We recently saw a case where a self-occupied property was assessed as deemed rental, with the tax pegged at over ₹2 crore.”
“There are 200–250 property tax disputes pending in courts. NDMC should also work towards settling these cases,” he said.
An NDMC official said a committee will soon be formed to determine the multiplication factors that will form the basis of tax calculation under the unit area method. “There is no fixed deadline for moving to the unit area method,” the official said.
NDMC currently has around 16,400 properties under its tax net, with approximately 10,500 taxpayers. This includes about 1,600 government-owned properties. Officials noted that the number of taxpayers assessed under the rent-based system remains fluid, adding to the complexity of administration.
