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:
- 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 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.
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.
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)
- How is the MCD property tax calculated?
- Can I pay the MCD property tax offline?
- Is municipal tax and property tax the same?
- I don’t remember my property tax ID. What should I do?
- I have some queries related to the payment of my property tax. What should I do?
Ans: The property tax is calculated based on the formula ‘Property Tax = Annual Value x Rate of tax’.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: 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.
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