According to the new system, the tax rate for properties in rural areas has been fixed at six per cent while that in urban areas would be 10 per cent.
"The new scheme would be more people-friendly and people can now assess their tax liability themselves," Delhi's Minister of Urban Development and Finance, A K Walia told reporters here.
Various tax concessions have been granted to properties owned by women, senior citizens and handicapped persons, he said.
"The number of disputed properties would be reduced considerably as a result of a drop in litigations," Walia said adding the overall revenue will increase because the number of assessees will rise.
"We have targeted a revenue of Rs 1,200 crore from this scheme in the first year," the minister told PTI.
Walia claimed the system, which is in force in other major cities of the country will lead to greater transparency in the tax structure.
Meanwhile, BJP Member of Parliament V K Malhotra has criticised the new scheme as "draconian" and asked Delhiites not to pay tax under it.
He alleged that under the scheme, tax burden in most areas will go up by 200 to 5000 per cent.