New Delhi: New Delhi Municipal Council (NDMC) is unlikely to implement the unit area method (UAM) for property tax collection during the current financial year, amid growing discontent among traders in Lutyens’ Delhi markets.Traders have reported receiving property tax bills running into lakhs, calculated on the basis of the annual expected rental value of their properties.While an official stated that the proposed bye-laws for introducing the UAM are still awaiting approval from Union home ministry and subsequent gazette notification, traders questioned the purpose of introducing Jan Vishwas Act, 2026, three months back, if NDMC is not certain about implementing the method anytime soon.“The move to introduce UAM was part of key amendments proposed under the Jan Vishwas (Amendment of Provisions) Act, 2026, which included changes to the NDMC Act, 1994. While majority of NDMC areas receive bills as per the UAM, others — especially markets — continue to receive bill as per annual expected rental value. The council is not even providing clarity on the issue despite attempts to hold discussion,” said Sanjiv Mehra, president of Khan Market Traders’ Association.Vikram Badhwar, general secretary of New Delhi Traders Association, said traders in Connaught Place were concerned over the high tax demands. “While the agency expects support from traders in organising events, what about our issues and concerns?” he said.Once implemented, property tax assessment will no longer be based on expected rental income or market rent—parameters that often varied even within the same colony and resulted in higher and inconsistent tax liabilities.Officials had earlier said the reforms could lower the upper property tax slab from 30% to 20% and enable rationalisation of the taxation framework. “After notification, a committee will be constituted to finalise the calculation matrix. The method will be uniform, but the process will take time,” an official said.NDMC’s tax rates are expected to range from 10% to 20% of the annual value of properties.The method for calculating property tax has remained contentious for years, with several associations previously challenging it in court. “While NDMC had attempted to introduce the UAM earlier, it could not be implemented through bye-laws as the NDMC Act, 1994 mandates an ‘annual rent’ basis. Hence, an amendment to the parent law became necessary,” the official said.
