In the latest update, the Municipal Corporation of Delhi (MCD) has said that it will not accept property tax payments through cheques starting July 1. The move comes as there have been rising cases of dishonoured cheques also termed as bounced cheques.
The decision seen as a significant change in MCD’s property tax payment policy, is aimed at addressing legal complications associated with dishonoured cheques and streamlining the payment process for property owners.
According to the MCD, the legal issues arising from bounced cheques have necessitated this shift. In a press statement, the MCD said, “Due to legal issues arising out of dishonoured cheques, cheque payments of property tax shall be done away with July 1 onwards.”
Taxpayers can now pay property tax through digital modes of payment such as UPI, digital wallets, Demand Draft, Pay orders, and other online payment gateways
Online tax payments, according to the MCD, would be more convenient and speed up reconciliations. “The electronic payment will not only ensure timely payment and issue of receipt but also facilitate ease of doing business. Taxpayers will be able to pay property conveniently and receive faster reconciliation of the same,” it said.
The civic body has also appealed to all property owners or occupiers of vacant lands and buildings to pay their taxes for 2024- 25 and get a 10% rebate on lump sum payments made before June 30, 2024.
“The Municipal Corporation of Delhi appeals to all the property owners/occupiers of the vacant lands and buildings to pay tax for the current year 2024-25 and get a 10 per cent rebate on lump sum payment of tax before 30th June. For tax payment, the property owners/occupiers can log onto www.mcdonline.nic.in.,” the MCD said.
“All property owners/occupiers of the vacant lands and buildings are also advised to geo-tag their properties,” it added.
Under section 114 of the Delhi Municipal Corporation (Amendment) Act, 2003, all buildings and vacant land that come under the jurisdiction of the MCD are liable to pay property tax.
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Additional Information:
Is Cheque bounce counted as a crime?
It is a crime, indeed, if a check bounces due to inadequate money in the bank account. A payee may, in such a case, use Section 138 of the Negotiable Instruments Act, 1881, to bring a criminal complaint.
What are the consequences of dishonoured cheque?
If a cheque is dishonoured because of insufficient of funds in the payer’s account, it is a criminal offense under the Negotiable Instruments Act of 1881. Legal action can be taken against the payer for issuing a cheque against an account with inadequate funds. In such a situation, the payer may also be asked to re-issue a cheque within three months.
Apart from this, banks also charge a penalty for dishonour of cheque. The penalty for bounced cheques may differ from bank to bank. The sums for which a dishonoured cheque is issued may be subject to varying penalty slabs across banks.
As per Section 138 of the Negotiable Instruments Act, 1881 (“Act”) A cheque bounce is a punishable offence with a fine which can extend to twice the amount of the cheque or imprisonment, 2-years imprisonment, and maybe both, depending on the court’s order.
