Property tax amnesty brings 85,000 new properties into tax net

New Delhi | Arun Sharma

The Delhi Municipal Corporation’s (MCD) ‘Suniyo’ property tax scheme has emerged as a major revenue booster, helping the civic body collect a whopping ₹726 crore and significantly strengthen its financial position.


Launched by the MCD’s Property Tax Department, the Suniyo Scheme concluded on December 31, 2025, and was aimed at encouraging defaulting and non-compliant property owners to clear their dues. The response, particularly in the final days, exceeded expectations, with hundreds of taxpayers coming forward to settle long-pending liabilities.


Officials said the revenue figure is likely to touch ₹750 crore once final data reconciliation is completed, underscoring the scheme’s strong impact.


85,000 New Properties Added to Tax Base
One of the most notable achievements of the Suniyo Scheme was the inclusion of around 85,000 properties that were previously outside the property tax framework. These properties paid tax for the first time, ensuring not just a one-time gain but a sustainable revenue stream for future years.


Relief on Penalties, Focus on Compliance
Under the scheme, property owners were offered relief from interest and penalties of the past five years, provided they paid the current financial year’s tax. This incentive proved decisive, encouraging widespread participation and improving overall tax compliance.


According to official sources, MCD has so far recorded a total property tax recovery of ₹2,535 crore, a figure described as unprecedented. Of this, ₹278 crore has come exclusively from first-time taxpayers — a milestone in the civic body’s revenue history.


Stronger Financial Health for MCD
Compared to the previous financial year (2024–25), MCD has collected ₹676 crore more in property tax, reflecting a sharp improvement in fiscal performance. Officials believe the Suniyo Scheme has not only boosted revenue but also strengthened public trust in the tax system.


Experts say the success of the scheme demonstrates that tax amnesty combined with incentives can significantly improve compliance. With its twin focus on revenue generation and widening the tax base, the Suniyo Scheme is being seen as a model initiative that could shape MCD’s future fiscal strategies.