MCD Property Tax (Municipal Corporation of Delhi) Last Updated : 03 Jun 2020

The Municipal Corporation of Delhi (MCD) is responsible for collecting property taxes from residents.Taxes are collected annually and the MCD sets a deadline. Payments can also be made through the MCD website by following a few easy steps.

  1. MCD Property Tax Calculation Method
  2. Steps to Pay MCD Property Tax Online
  3. Exemption for MCD Property Tax
  4. Rebate of MCD Property Tax
  5. Penalty
  6. FAQs
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If you own a residential property in Delhi, then you will have to pay property tax to the Municipal Corporation of Delhi (MCD). All the properties including the vacant ones which comes under the purview of the body will be charged with the MCD property tax.

MCD Property Tax Calculation Method

The formula used for the calculation of MCD Property Tax is given below:

    Property Tax = Annual Value * Rate of Tax
    Annual Value = Unit area value per square meter x unit area of property x age factor x use factor x structure factor x occupancy factor
    Rate of Tax = MCD publishes the rate of tax for A-H categories every year. You can find the applicable rate of tax on the official website of MCD Property Tax.

  • Unit area value: This is the value per square meter assigned for the built-up area of the property
  • Unite area of property: The built-up area not in the carpet area per square meter
  • Age factor: Newer properties are levied higher tax as compared to old ones. The age factor is based on the age of the property, where the value of this factor ranges between 0.5 to 1.
  • Use factor: Residential properties are levied lower tax as compared to the non-residential properties. The value of factor assigned is 1.
  • Structure factor: RCC constructions are levied higher tax in comparison to low value constructions.
  • Occupancy factor: Properties that are rented out are levied higher tax as compared to the self-occupied ones.

Steps to Pay MCD Property Tax online

Given below are the steps you will have to follow in order to pay the MCD Property Tax online:

  • Visit the official website of MCD http://www.mcdpropertytax.in/ and select whether the property tax needs to be paid to the South Delhi MCD, North Delhi MCD, or the East Delhi MCD.
  • On selecting one of the options, you will be directed to a separate page. There you will have to tick the box for agreeing to the terms and conditions and click on ‘click here to file property tax’.
  • Choose any one of the options – Property id for property tax paid in 2014-15 or other year property id. Enter the property id.
  • If 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 separate page where you will have to enter the necessary details, and declare the total area of property you have followed by ticking on the box ‘I have read and I accept the declaration made above’. Click on ‘Submit’. The property id will be sent to your registered mobile number’. You can use the property id to file your property tax in the future.
  • As mentioned above you can choose any one of the options - Property id for property tax paid in 2014-15 or other year property id and enter the property id in the box given.
  • You will be directed to a separate page containing the details of your property ownership.
  • Enter the details of your property and automatically calculate the tax payable. Click on ‘Submit’.
  • You can pay the tax either by credit/debit card or by net banking.
  • Once the tax has been paid, click on ‘generate challan’. The challan will be displayed. You can download it for future reference.

Paying MCD Property Tax Offline:

If you dont wish to pay the property tax online, you can pay it at one of 800 strategically placed ITZ cash counters all across Delhi. You will instantly be issued a receipt after your offline payment which will contain a property tax ID which you must use for all future tax payments.

Please also note that if you do not remember or do not use your previously allotted ID, the system will allot a new one to you and this will create a whole new host of problems for you during future tax payments, and may even attract punitive action.

Exemption for MCD Property Tax

Given below are the bodies/individual who are exempted from the payment of property tax:

  • Vacant land or buildings used as place of worship, public burial, heritage land, or used for charitable purposed by any body or individual.
  • Agricultural land or building.
  • Land or building vested in corporation.
  • Property owned by an ex-servicemen or widow of a person martyred in war. The property should only be used as a self-residence and no portion of it is let out.
  • Properties martyred on paramilitary or police duty.
  • Property owned by a South MCD employee who is handicapped but fully on duty.
  • Any sportsperson who has won awards for any international games.

Rebate of MCD Property Tax

  • If you pay your property tax as a lump sum during the first quarter of the year, then you will be eligible to receive a discount of 15% on the total tax amount payable.
  • A discount of 10% of the annual value is given to DDA/CGHS flats but only up to 100 square meters.
  • A discount of 30% is given to women physically challenged individuals, and senior citizens but only for one property.
  • A discount of 30% on the property tax is offered to ex-servicemen.
  • A discount of 20% to group housing flats up to 30th June of the financial year.

Conditions for availing the rebate

  • Rebate is offered for up to a maximum of 200 square metres except for DDA/CGHS flats which have a limit of up to 100 square meters.
  • Occupancy factor should be residential.
  • Use factor should be self-occupied.
  • In case of joint owners, concession will be offered based on the property share of the owners who qualify for concession on property tax.

Penalty for Delay Payment of MCD Property Tax

  • In case you delay the payment of property tax, a fine of 1% will be levied each month by the MCD on the tax amount payable.
  • The deadline for the payment of tax is announced by Delhi Municipal Corporation (DMC).

Frequently Asked Questions (FAQs)

  1. How is the MCD property tax calculated?

    2. The property tax is calculated based on the formula ‘Property Tax = Annual Value x Rate of tax’.

  2. Can I pay the MCD property tax offline?

    3. Yes, you can pay the MCD property tax offline by visiting any of 800 ITZ cash counters which are located strategically all over Delhi. It is recommended that you pay the tax either by cheque or by demand draft. Once the payment is made, you will receive a receipt which will contain the property tax id and could be used for future reference.

  3. Is municipal tax and property tax the same?

    4. No, municipal tax and property tax are two different tax that you will pay. However, property tax is a type of municipal tax charged by the municipal corporation.

  4. I don’t remember my property tax ID. What should I do?

    5. It is highly recommended that you do not forget your property tax ID as a new one will not be provided. In case you forget your ID, get in touch with an MCD official who will help you with the process. You will also be penalised for the allotment of a new property tax ID.

  5. I have some queries related to the payment of my property tax. What should I do?

    6. In case of any queries related to the payment of your property tax, you can lodge a complaint by visiting the official website of MCD property tax. Under the ‘grievance’ section click on ‘Lodge grievance reg tax receipt’. You will be directed to a separate page where you will have to enter the property id, name of the taxpayer, contact number, and the mode of payment through which the tax was paid. Click on ‘Submit’. An official from MCD property tax office will get in touch with you and will help you with your query.

News About MCD Property Tax

  • North MCD reveals the new property tax interface

    On Wednesday, the North Delhi Municipal Corporation had revealed its new interface on its portal for citizens to file their property taxes.

    The new link is https://mcdonline.nic.in/citizenndmc/web/citizen/info and this portal is super friendly. This has been aimed at earning a lot more residents for filing their taxes online. This comes in during a time when people are unable to step out because of the lockdown.

    Property tax has become the biggest source of revenue for all corporations and this is followed by parking, toll tax, renting out community halls and advertisement.

    During the last financial year-2019-2020, the north corporation had collected a revenue of Rs.1,118 crore as property tax, and this was around 45% of its income. A few officials had said 4.68 lakh homes have enrolled in the Unique Property Identification Card (UPIC) system.

    19 May 2020

  • Amnesty scheme for property tax in New Delhi

    The three municipal corporations of New Delhi have developed an amnesty scheme which will provide a waiver of interest and penalties on property tax, if the arrears are paid before February 28th, 2017. This scheme could be availed from the 19th of November. The amnesty scheme will extend beyond February, but under certain conditions. Arrears being paid after March 1st will have a total waiver on the penalty, but 50% of the total interest applicable would need to be paid. This scheme is applicable to all properties, residential or commercial. Presently, property tax has arrears of Rs.2,700 crore with the three municipal corporations. The municipal corporations will be accepting old Rs.500 and Rs.1,000 currency notes for payment to encourage individuals to clear their property tax before the end of March, 2017.

    22 November 2016

  • Interest and Penalty Waived Off by MCD in Delhi

    The standing committees of the Municipal Corporations of Delhi (MCD) has recently announced that it will waive off the interest and penalty on property tax arrears that are payable till February 28, 2017. The waiver can be availed by residents of Delhi in all the 3 MCDs. This waiver will be in effect until March 31, 2017, but after February 28, 2017 people will have to pay 50% of the interest on their property tax. The scheme is available for all types of properties. The MCD has decided petition for waivers will be disposed of within a period of 15 days.

    19 November 2016

  • 3 Municipal corporations in Delhi Experienced High Property Tax Collection

    Three municipal corporations in Delhi experienced a tax collection for property over Rs.3 crore collectively, in 2 days after the announcement was made for allowing old Rs. 500 and Rs. 1,000 currency notes for property tax up to November 14. According to sources, North Corporation made a collection of Rs.1.17 crore, East Corporation collected Rs.51 lakhs while South Corporation collected the highest being Rs.2.52 crore.

    16 November 2016

  • Delhi Municipal Corporation to Charge Not Cleaning Empty Plots or Flats

    In case your home or plot is deserted and not resided for years leading to garbage accumulation in your property, you will be charged a penalty in case you do not have it cleaned. There are many plots and properties that are unused or even abandoned, not only leading to garbage accumulation in east Delhi will face charges but they also have to get dirt or water accumulated in the area cleaned by the corporation and the cost would be incurred to the property tax of plot or land owners. This is majorly to fight the mosquito breeding ground that these areas create.

    27 September, 2016

  • NDMC takes possession of properties of tax defaulters

    The North Delhi Municipal Corporation attached around 450 properties that failed to pay MCD property tax in the last fiscal. Dedicated teams have also been formed to recover all outstanding dues, such as transfer duty and stamp duty.

    Praveen Gupta, NDMC Commissioner stated that more than 125 commercial establishments have failed to pay transfer duty, which has resulted in financial losses to the municipal corporation. Transfer duty is a surcharge on stamp duty at a rate not exceeding 5% of the total amount specified in the DMC Act. It must be paid in the sale or transfer of an immovable property.

    Gupta said that individuals and builders are required to pay the tax owed to the corporation, as this contributes to the development of the municipality and the provision of civic amenities.

    16 September, 2016

  • MCD Exempts Vijay Goel’s Haveli by discounting Rs 25 crore tax for 750 houses

    A tax exemption rule has been passed by North Delhi's municipal body for more than 750 heritage structures to simply to win the goodwill of Union minister & BJP leader Vijay Goel, claims the rival parties. This would cost the municipality Rs 25 crore along with the approximate deficit of over Rs 2,700 crore for the running financial year. The beneficiaries of this rule includes the sports and youth affairs minister's family.

    7 September 2016

  • East Delhi witnesses an increase in Property Tax

    The East Delhi Municipal Corporation (EDMC) had executed every suggestion made by the Third Municipal Valuation Committee including the proposition to escalate property tax in certain residential areas in East Delhi. As EDMC is going through a financial crunch, they say it is one effective way to bring down the burden on the government when it comes to tax. A continuous economic crisis didn’t do much to outdo the political stresses of the upcoming 2017 elections there and hence the tax hike. In the previous week, the civic body explained it had approved orders to formally roll back the decision to carry out the recommendations, and postpone the 15 percent reduction for property tax until further notice.

    4 August 2016

  • SDMC Confident Of Meeting Property Tax Target

    The South Delhi Municipal Corporation (SDMC) said on Thursday that it was confident of achieving a growth in property tax collections for the year, after meeting its target for the year 2015-16. While the SDMC was hopeful of a bigger collection this year, the East and North Delhi Municipal Corporations continue to struggle to meet expectations. An SDMC senior officer stated that although it would take approximately a week to process payments, the corporation would see an increase of 6 to 8 per cent in the first quarter in comparison to the same time last year. This is due to 25,000 more taxpayers making payments this time around as compared to last year. The SDMC also stated that it has targeted a figure of Rs. 715 crore in property tax collections for the financial year.

    4 July 2016

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