'SAMRIDDHI 2022-23' is a one-time property tax amnesty scheme that was launched by Delhi Lieutenant Governor Vinai Kumar Saxena. This move could be seen as a significant move, as it will benefit lakhs of property owners, both residential and commercial. The SAMRIDDHI initiative, which stands for Strengthening and Augmenting of Municipal Revenue for Infrastructure Development in Delhi, started on October 26 and will continue until March 31, 2023, with no extensions.

Understanding SAMRIDDHI 2022-23

Residential property owners will be able to pay only the current and preceding five years' principal property tax under the SAMRIDDHI 2022-23 scheme. Commercial property owners, according to an official statement, can pay the principal amount for the last six years and receive a waiver on past pending dues, including penalties and interest.

The elimination of tax duty results in more money in the hands of taxpayers and increased revenue for the Municipal Corporation Of Delhi (MCD). The new amnesty programme will strengthen the tax base and enable MCD to develop a proper tax database by being more pragmatic in the collection of its long-overdue tax obligations. The tax amnesty programme offers a "One Plus Five" option for residential properties and a "One Plus Six" option for commercial properties.

One Plus Five & One Plus Six

Residential property taxpayers 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% interest and penalty on the outstanding tax amount is exempted and all previous dues prior to 2017-18 are waived. This payment requirement is known as the "One Plus Five" policy.

Similar to this, the "One Plus Six" scheme for non-residential properties requires property owners to 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% interest and penalty on the outstanding tax amount are exempted and all prior dues from before 2016-17 are entirely waived.

What if Taxpayers miss the deadline

If a taxpayer does not pay his tax bills by March 31, 2023, he will be responsible for paying all tax debts accrued since 2004 or the relevant year, including interest and penalties, and he will not be qualified for a waiver. Beginning on April 1 of the following year, such defaulters will be subject to coercive measures to recover tax debts.

Proof of payment

A taxpayer must provide proof of payment in order for the tax database to be updated if they have previously paid their dues for any of the years 2017 to 18 or 2016 to 17 but their payment has not been noted in MCD tax data. No cases will be reevaluated or reopened in which the principal, interest, and penalty have already been paid before the start of the scheme.