BCD Writes To LG Against Levy Of Professional Tax on Lawyers, Charge Of Property Tax On Offices At Higher Rate As 'Business Buildings' [Read Letter]

The Bar Council of Delhi has on Tuesday approached the NCT's Lieutenant Governor, raising the concern that the South Delhi Municipal Corporation has proposed to levy professional tax on lawyers, besides other self-employed professionals such as doctors, architects, chartered accountants.

The proposal having been referred to the LG for approval, "the legal community in Delhi" has voiced its 'strong objection' to the move, seeking to 'lodge its protest' against the levy of professional tax on lawyers.

"There appears to be some bias and malice against the lawyers, since even in the past, the municipal corporations in Delhi have made feeble attempts to impose professional tax on the lawyers and other professionals", reads the communication.

The BCD has "highly condemned" and "conveyed its acceptability" to such a repeated attempt over-and-over again despite having been proposed and dropped in the past.

"We are not aware of any evil design behind such a repeated move, after decisions having been taken in the past to drop such a proposal", the letter states unequivocally.

Asserting that the legal profession is "a noble profession" and as officers of the court, the lawyers do not perform any commercial activity, it is urged that the SDMC cannot be expected to resort to imposition of professional tax, for whatever reason.

"This move has caused immense anger and anguish among the legal fraternity, which is already severely hit by the ongoing Covid crisis and on account of various charges on commercial basis", reads the letter.

The BCD has also expressed its opposition to the move of the SDMC in doubling the property tax on rented properties being used for office. "A very large number of lawyers in Delhi are operating from rented accommodation as there is acute shortage of chambers in various courts", it is pressed.

It is submitted that if the SDMC is allowed to levy double the existing property tax on such establishments, naturally the rent of the said premises will be highly detrimental to the legal profession.

Finally, it is pointed out that under the Use Factor for property tax, the professionals should have been included in Use Factor-1 (Residential and Public Purpose), but there is no specific category provided, and consequently, for the property tax which ought to be paid in Use Factor - 1, the lawyers have been subjected to unnecessary harassment, because of the administrative laxity. The advocates are at present liable in the category of 'business' under 'Use Factor 4' , which is a much higher tax slab.

It is advanced that as far as doctors' clinics are concerned, a separate category has been provided in Use Factor - 2 (being, 'Utilities'), but for lawyers, who should be categorised in Use Factor - 1, no such provision has been made, causing undue harassment.

Click Here To Download Letter

[Read Letter]