Property tax: Two classes for schools

Shruti Maheshwari

New Delhi, November 3

Paying property tax may become simpler for private schools in Delhi.

The MCD’s Hardships and Anomaly Committee has recommended that schools be divided into just two categories for calculating property tax. Schools were earlier divided into three slots on the basis of the fees they charge.

The first category comprises schools which charge up to Rs 600 as fees. Schools charging more than Rs 600 as fees will be in the second category and will have to pay twice the tax as those in the first category.

While fixing a school's category, fees for boarding and transport would be deducted from the final figure.

This means that only fees charged for development, security, library and cultural activities will comprise the final figure on the basis of which fees charged per student is calculated, said an MCD official.

The third category for schools which charged more than Rs 1,200 has been done away with, said a committee member. This was done because of fears that schools would pass on the tax burden to parents.

Committee member Sanjay Puri said schools have already been given other benefits, said Puri. The early payment rebate had been increased from 5 per cent to 15 per cent for schools which paid their tax till October 31.

Schools had been demanding that the policy for calculating property tax be reviewed. "As per property tax rules, private schools falling in category C would have been asked to pay an additional Rs 37 lakh as tax which means Rs 2000 more per child per year," said V.K. Williams, of the Association of Progressive Schools in a representation to the committee