Faridabad Mixed-Use Properties May Face Double Property Tax Under New Policy

Faridabad | August 10, 2026: Property owners in Faridabad who run shops, workshops or other commercial activities from residential premises could see their property tax bills rise sharply under a new policy being considered by the municipal corporation.

The proposed change could affect around one lakh mixed-use properties, particularly in residential colonies and sectors where homeowners have converted part of their houses into commercial spaces.

Residential Homes Used for Business Could Pay Double Tax

Under the new urban local bodies policy, properties being used for both residential and commercial purposes may attract twice the applicable property tax.

This could have a direct impact on homeowners in areas where small businesses operate from residential buildings.

For example, properties currently paying around ₹500 in annual property tax could see the amount rise to about ₹1,000 under the proposed treatment.

What Happens If Owners Want to Avoid Higher Tax

Property owners may have to stop commercial activity from their residential premises if they want to avoid the higher tax liability.

The other option could involve bringing the property back into compliance with the approved building plan.

This means homeowners using part of their house as a shop, workshop or other commercial space may need to reassess both their property use and building approvals.

 

Setbacks and Building Violations Could Also Increase Tax

The proposed policy is not limited to mixed-use properties.

In HSVP sectors, properties where owners have not maintained the required front or rear setbacks according to the approved plan could also face double property tax.

This makes building-plan compliance an important issue for homeowners, particularly those who have made extensions or structural changes over the years.

Faridabad Property Owners Face Another Challenge

The proposed tax changes come at a time when many residents are already dealing with property ID verification and correction issues.

According to the information provided by the municipal corporation, Faridabad has around 7.80 lakh properties, but only about 2.34 lakh property IDs have been verified and corrected so far.

The data includes around 4.54 lakh residential properties, 17,000 commercial properties and nearly one lakh mixed-use properties.

 

Policy Still Has Some Unclear Areas

Municipal officials have sought guidance from the state government on several aspects of the new policy before implementing the changes.

The uncertainty is important for homeowners because the final interpretation could determine how mixed-use properties and properties with building deviations are assessed.

Officials have indicated that further clarity will be available after guidance is received from the urban local bodies department.

Why This Matters for Homeowners

For residents using their homes for small businesses, the proposed policy could directly increase their annual property expenses.

It also highlights the importance of checking whether a property's actual use, property ID and approved building plan are consistent with municipal records.

For prospective buyers, the development is another reminder to verify the property's sanctioned use and tax records before purchasing a house in Faridabad.