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Delhi Property Tax

Delhi property tax is collected by the municipal co-corporation of Delhi (MCD). The property tax collected is an important source of revenue for the MCD, and these funds are used for the maintenance and improvement of civic amenities and infrastructure. Any person owning land or property in Delhi is accountable to pay an MCD property tax or house tax.

Delhi is a huge city, both in terms of area and population and thus, the municipal corporation has been divided into 3 regions namely: East Delhi Municipal Corporation or the EDMC, North Delhi Municipal Corporation or the NDMC, and South Delhi Municipal Corporation or SDMC. Since the MCD is separated into different regions, the property owners have to determine under which region their property is located and must pay the property tax to the respective MCD only.

So, the North Delhi property tax is paid to NDMC, East Delhi property tax to EDMC, and South Delhi property tax to SDMC.

How To Compute Property Tax in Delhi?

The Municipal Corporation of Delhi uses the ‘Unit Area System’ for computing the property tax. The formula used for the computation of the property tax is as follows:

Property Tax = annual value * rate of tax

Annual Value = Unit area value per square meter * unit area of property * age factor * use factor * structure factor * occupancy factor

Rate of Tax = Every year, MCD publishes the rate of tax for A-H categories.

You can find the tax rate applicable on the official website of MCD property tax.

The elements used in the computation of Delhi Property tax are as follows:

  • Unit area value is the value per square meter assigned for the built-up area of the property
  • The unit area of the property is the built-up area not included in the carpet area per square meter.
  • The age parameter indicates the age of the property, where the value of the factor ranges between 0.5 to 1.0.
  • Use factor is determined by the type of property whether residential or commercial
  • Constructions like RCC constructions are levied higher tax as compared to low-value constructions
  • Occupancy factor: properties that are rented out are levied higher tax than as compared to the self-occupied ones.

Steps to Pay MCD Property Tax online

Given below are the steps to pay the MCD Property Tax online:

Step 1: Go to the official website of MCD http://www.mcdpropertytax.in/ and pick whether the property tax needs to be paid to the South Delhi MCD, North Delhi MCD, or the East Delhi MCD.

Step 2: After choosing one of the options, you will be directed to a distinct page. There, you tick the box for agreeing to the terms and conditions and click on ‘click here to file property tax’.

Step 3: Choose any one of the options- Property Id for property tax paid in 2019-20 or other year property id. Enter the property ID.

Step 4: In case you are filing the property tax for the first time, then click on the option ‘First time online taxpayer’. Click on ‘click here if property id has not been allotted earlier.’ You will be directed to a page where you will have to enter the required details. Give the total area of the property by ticking on the box - ‘I have read and I accept the declaration made above’. Click on ‘Submit’. The property ID will be received at your registered mobile number’. You can use the property ID to file your property tax in the future.

Step 5: As mentioned above, you can pick any one of the options - Property id for property tax paid in 2014-15 or other year property id. Enter the property id in the given box.

Step 6: You will be directed to a different page that contains the details about the ownership of your property.

Step 7: Key in the details about your property and automatically compute the tax payable. Click on ‘Submit’.

Step 8: You can pay the tax either by credit/debit card or by netbanking.

Step 9: Once you pay the tax, click on ‘generate challan’. The challan will be displayed. You can download it for future reference.

Offline Payment Process

Apart from the online process, you can pay your tax at one of the 800 ITZ cash counters that are strategically placed all across Delhi.

Alternatively, you can pay your tax at one of the 800 ITZ cash counters that are placed at important places all across Delhi. An MCD property tax receipt is issued instantly on completing the payment. Furthermore, this receipt incorporates a property tax ID that is useful in future tax payments.

Additionally, the entire property tax in Delhi is to be paid in a single lump sum before the first quarter of a given financial year. Therefore, you must pay the Delhi property tax due online or offline before the last date of payment, i.e, June 30, 2022.

Individuals and Bodies Who Are Exempted From MCD Property Tax

Several individuals and bodies enjoy exemption from property tax in Delhi. They are:

  • Empty buildings or land that serve as a place of worship, heritage site, public burial, or which are used for charitable purposes.
  • Property belonging to individuals martyred when on paramilitary/police duty
  • Agricultural land or building. Residential houses do not feature in the list.
  • A sportsperson who has obtained awards in international games.
  • Property owned by an individual who has won the gallantry award or a war widow who utilizes the entire property for self residence.
  • Property owned by an employee of South MCD who is completely handicapped.

Reduction On MCD Property Tax

MCD offers a reduction on property tax in the following cases:

  • A 30% reduction is offered to senior citizens, physically handicapped individuals, ex servicemen, and women for a single property and that too upto 200 square meters.
  • A 15% reduction is offered if tax is paid as a lump sum by a taxpayer during the first quarter of the applicable financial year.
  • Reductions are offered to CGHS/DDA flats for up to 100 square meters and on the annual value.
  • A rebate of 20% is given to owners of group housing flats who pay their MCD property tax before June 30 of a given financial year.

Penalty for Delay Payment of MCD Tax

In case you delay the payment of property tax, a penalty of 1% will be levied each month by the MCD on the tax amount payable.

The Delhi Municipal Corporation (DMC) announces the deadline for the payment of tax.

Conclusion

As explained above, Delhi property tax is an important source of revenue for MCD. So, it is important that you as an individual pay the property tax on time without fail.

FAQs

1. How can I check my property tax online in Delhi?

mcdonline.nic.in is the official website of the Municipal Corporation of Delhi. The portal provides the option to pay online to its users. By visiting mcdonline.nic.in, citizens can pay property tax, house tax, professional tax, and water bill.

2. What Is the annual value of house property?

As per the Income Tax Act, the annual value of the property is the capacity of the property to earn income and is taxed to the owner. As per the same, the taxable income could be either the Gross Annual Value (GAV), Annual Value, or the Net Annual Value (NAV).

3. How can I lower my property taxes?

  • Comprehend Your Tax Bill
  • Ask for Your Property Tax Card.
  • Research your neighbors
  • Walk the home with the assessor
  • Allow access to the assessor.
  • Check for Exemptions.

4. How much is the property tax in Punjab?

Property tax = collector rate of property + construction cost (Rs. 500 per square feet) minus depreciation (10 percent of construction cost) * 5 percent of the total cost. This is taken as the annual cost and 0.5 percent tax is levied on the annual cost.

5. How much income from house property is taxable?

Deduction of municipal tax is allowed only if it has been obtained by the owner and paid during that financial year. Standard deduction - standard deduction is 30% of the net annual value calculated above. This 30% deduction is permitted even when your actual expenditure on the property is higher or lower.

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