Profession tax rate hiked in Delhi

A person earning over Rs 30,000 per month may have to pay a ‘professional tax’ of Rs 100-200 under new tax proposals unveiled by the MCD in its 2010-11 budget, which also envisaged a hike of five per cent in property tax rates. The civic agency will focus on Commonwealth Games 2010 related infrastructure and parking projects in the coming year, for which an additional Rs 1,005 crore has been allocated, Municipal Commissioner K S Mehra said.

Presenting the Revised Budget Estimates for 2009-2010 and the Budget Estimates for 2010-2011 at a special meeting of the MCD Standing Committee, Mehra said the Rs 6,346.70-crore budget will be mainly spent on sanitation and cleanliness, engineering works, health and education sectors.

He said the civic body is proposing to introduce a “professional tax” for those professionals living in Delhi and having an income of more than Rs 30,000 per month.

“MCD can levy such a tax under the discretionary tax system. It will be applicable to all people who are in a profession, trade or employment,” he said, adding the tax rates may vary from Rs 100 to Rs 200 a month.

The Commissioner also proposed an increase of five per cent in property tax in all categories and imposition of 20 per cent commercial tax on rented non-residential properties and “high-end non-residential” properties like high-class hotels, malls, air-conditioned gymnasiums and clubs having swimming pools.

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