MCD Property Tax Collection Soars by 46% in FY 2025-26
The Municipal Corporation of Delhi (MCD) has announced a significant boost in property tax revenue, with collections surging by 46% to reach Rs 3,116.6 crore in the financial year 2025-26. This marks a substantial increase from the nearly Rs 2,132.9 crore collected in the previous fiscal year, 2024-25.
Rise in Taxpayer Numbers and Amnesty Scheme Impact
Accompanying this revenue growth, the number of taxpayers has also climbed by 19.3%, rising from 11,33,161 to 13,52,562. A key driver of this collection spike is the Sumpattikar Niptaan Yojana (Suniyo) 2025-26, a one-time amnesty initiative that contributed over Rs 1,236 crore to the total revenue.
Despite extending the Suniyo scheme for the entire year—a departure from previous short-term offers—MCD fell short of its revised target of Rs 3,500 crore. In response, the civic body has now prolonged the scheme until April 30, 2026, introducing a reduced penalty of 5% on arrears and dues to encourage further compliance.
Revenue Breakdown and Commercial Focus
Detailed figures reveal that 2,06,861 taxpayers benefited from the Suniyo scheme, with contributions split between residential and non-residential properties. Specifically, Rs 242.9 crore came from over 1.4 lakh residential units, while Rs 993.5 crore was generated from more than 59,000 commercial properties. Notably, 1,11,909 new taxpayers availed the scheme for the first time, adding Rs 448.9 crore to the coffers.
MCD officials emphasized that commercial units formed a major share of the revenue, with residential contributions remaining comparatively lower. To enhance collections, the corporation implemented targeted measures, including the use of third-party data sources such as health trade licences and general trade licences. This strategy led to the identification of 5,808 new properties, generating nearly Rs 25.7 crore in revenue.
Enhanced Compliance and Data-Driven Strategies
Further efforts involved leveraging data from discoms to pinpoint non-filers, resulting in the discovery of 43,114 new properties and an additional Rs 40.2 crore in revenue. The assessor and collection department also took strict action against long-pending defaulters, including property attachments to ensure compliance.
NDMC Also Sees Revenue Growth
In a related development, the New Delhi Municipal Council (NDMC) reported a 34.2% increase in property tax and transfer duty collections, rising from Rs 1,040.3 crore in 2024-25 to Rs 1,396.8 crore in 2025-26. NDMC Vice-Chairman Kuljeet Chahal attributed this success to a good governance model that avoids harassment, encouraging more people to clear their dues.
Chahal added that future revenue may climb higher as NDMC moves towards implementing the unit area method, which is expected to reduce the tax burden and incentivize payments from those currently avoiding higher rates.
Other Revenue Streams and Outlook
Beyond property tax, MCD's collection from the remunerative and project cell stood at Rs 265.6 crore in 2025-26, down from Rs 275.7 crore the previous year. Conversely, revenue from advertisements increased to Rs 441.6 crore from Rs 361 crore in 2024-25, indicating a diversified revenue approach.
Overall, MCD's proactive strategies and the extended amnesty scheme underscore a concerted push to bolster municipal finances, with ongoing efforts aimed at sustaining this upward trajectory in tax compliance and revenue generation.
