Guide on How to pay MCG (Gurgaon) Property Tax

The residents of Gurugram, also known as the Millennium City, are required to pay property tax based on the size and usage of their plots. The Municipal Corporation of Gurugram (MCG) collects this tax as a source of revenue.

Furthermore, the MCG imposes a house tax on all urban properties in Gurugram, excluding religious properties.

Property owners have the option to pay their MCG property tax either online or offline, depending on their preference. In this article, we will guide you through the process of calculating property tax and provide step-by-step instructions for both online and offline modes of tax payment.

Property tax is a direct tax imposed by the state government on different types of real estate properties, such as residential houses, commercial premises, vacant land, and rented properties. The collection of annual property tax is the responsibility of the municipal authority in your city or town.

MCG Property Tax Calculation

The MCG introduced a user-friendly system in 2013 to facilitate the calculation of property tax, making the payment process seamless for residents. The calculation of MCG property tax takes into account the specific rates applicable to different types of properties.

It is important to mention that cities like Faridabad and Gurugram are categorized as Type A1 cities, and the tax rates for similar properties in these cities are the same.

However, it is worth noting that self-use residential properties of medium and small sizes have lower tax rates compared to commercial or large properties.

Property Tax on Residential Property

Houses

Area for Residential Houses

Property Tax

Up to 300 square yards

Rs. 1 per square yard per year

301 to 500 square yards

Rs. 4 per square yard per year

501 to 1000 square yards

Rs. 6 per square yard per year

1001 square yards to 2 acres

Rs. 7 per square yard per year

More than 2 acres

Rs. 10 per square yard per year

Note: The stated rates are specifically for residences situated on the ground floor. In cases where the floors of a building are individually owned by different individuals, the aforementioned rates will be applied uniformly to all floors. Conversely, if the entire building is owned by a single individual, a discount based on the specific floor will be applicable. A reduction of 40% will be provided for the first floor, while a 50% reduction will be granted for the second floor.

Flats

Area for Flats

Property Tax

Flat with carpet area up to 2000 square feet

Rs. 1 per square feet per year

Carpet area from 2001 to 5000 square feet

Rs. 1.20 per square feet per year

Carpet area above 5000 square feet

Rs. 1.50 per square feet per year

Area for Vacant Land

Property Tax 

Up to 100 square yards

Nil

101 to 500 square yards

Rs. 0.5 per square yard per year

More than 500 square yards

Rs. 1 per square yard per year

Residential Vacant Land

Area for Flats

Property Tax

Flat with carpet area up to 2000 square feet

Rs. 1 per square feet per year

Carpet area from 2001 to 5000 square feet

Rs. 1.20 per square feet per year

Carpet area above 5000 square feet

Rs. 1.50 per square feet per year

Area for Vacant Land

Property Tax 

Up to 100 square yards

Nil

101 to 500 square yards

Rs. 0.5 per square yard per year

More than 500 square yards

Rs. 1 per square yard per year

Property Tax on Commercial Property

Shops

Area for Ground Floor Shops

Property Tax 

Up to 50 square yards

Rs. 24 per square yard per year

From 51 to 100 square yards

Rs. 36 per square yard per year

From 101 to 500 square yards

Rs. 48 per square yard per year

From 501 to 1000 square yards

Rs. 60 per square yard per year

More than 1000 square yards

Will be treated as commercial space

Note: The rates provided above are specifically for shops situated on the ground floor. In the event of a multi-story building owned by a single entity, there will be a property tax rebate of 40% for the first floor and a 50% rebate for the second floor, calculated with respect to the rates applicable to the ground floor.

Additionally, if the shop or a portion thereof is rented or leased out, the property tax applicable to the rented area will be 1.25 times the aforementioned rates.

Commercial & Institutional Spaces

Area for Commercial Spaces

Property Tax

Up to 1000 square feet

Rs. 12 per square feet per year

More than 1000 square feet

Rs. 15 per square feet per year

Area for Industrial Spaces

Property Tax 

Up to 2500 square yards

Rs. 5 per square yard per year

From 2501 square yards to 2 acres

Rs. 6 per square yard per year

From 2 acres to 50 acres

Rs. 6 per square yard per year till 2 acres + Rs. 2 per square yard for the area above that

More than 50 Acres

Rs. 6 per square yard per year till 2 acres + Rs. 2 per square yard for the area above 2 acres but below 50 acres + Re.1 per square yard for the area above 50 acres

Area for Institutional-Commercial Spaces

Property Tax

Up to 2500 square yards

Rs. 12 per square yard per year

From 2501 to 5000 square yards

Rs. 18 per square yard per year

More than 5000 square yards

Rs. 24 per square yard per year

Rebates on MCG Property Tax

The Municipal Corporation of the city will grant a full rebate (100%) on property tax for the following types of properties:

Rebate Provided on Following Properties

  1. Religious Property
  2. ALM House
  3. Municipal Properties
  4. Dharamshala
  5. Central and State Government Educational Institutes
  6. Government Hospitals
  7. Defence Paramilitary Forces Personnel (self-occupied property)
  8. Ex-Service Personnel and Family (self-occupied property)
  9. Paramilitary Force Personnel and Family (self-occupied property)
  10. Families of Deceased Soldiers or Ex-servicemen (self-occupied property)
  11. Self-Occupied Residential Houses Occupied by Freedom Fighters
  12. War Widow (self-occupied property)
  13. Horticulture or Agriculture (up to 1 acre)
  14. State Government Buildings
  15. Lal Dora Properties (w.e.f. 1 April 2010)
  16. Flats up to 2000 square feet

Note: A 10% rebate will be applicable if the property holder pays the outstanding property tax before 31 July in the assessment year.

MCG Property Tax Online Payment

Here are the steps for MCG property tax online payment: 

Step 1: Visit the official website of the Municipal Corporation to pay MCG house tax.

Step 2: Look for the property tax tab on the left side of the screen and click on it to proceed.

Step 3: Log in by providing your login type and mobile number.

Step 4: On the next page, you have the option to enter either your unique property ID or your property address, locality, and owner's name.

Step 5: Once you provide the necessary details, the tax details will be displayed on the screen.

Step 6: It is essential to carefully review the payable amount before proceeding with the payment.

Step 7: Make the MCG house tax online payment using options such as credit/debit card or net banking.

Step 8: After a successful payment, a receipt for the MCG property tax payment will be generated. Remember to save this receipt for future reference.

Step 9: If you find the online procedure inconvenient, you can explore the offline procedure for paying MCG property tax instead.

MCG Property Tax Offline Payment

Here are the steps for MCG house tax offline payment:

Step 1: Visit the Property Tax Collection centres, also known as Citizen Facilitation Centres, located throughout the city.

Step 2: Alternatively, you can visit any Oriental Bank of Commerce branch in the city to make the tax payment.

Step 3: At the offline payment centres, the representatives will verify specific property details that you need to present.

Step 4: After finishing the payment, you will receive the MCG property tax receipt.

Step 5: The deadline for MCG property tax payment is July 31st of the respective assessment year.

Step 6: Paying the dues before the MCG Gurgaon property tax last date will entitle you to a rebate of 10% on the applicable tax amount.

Step 7: In case property owners fail to pay the tax on time, they will be liable to pay an interest of 1.5% per month on the outstanding payment liability. 

Therefore, you have the option to pay your property tax offline in any suitable mode, ensuring a hassle-free process. Remember to generate the MCG property tax challan after a successful payment, as it is essential for future reference. 

Penalty on MCG Property Tax

  1. If you have not paid your due property tax, you will be subject to a penalty equal to the amount of tax evaded. This penalty will be in addition to the outstanding amount of Gurgaon property tax.
  2. In the case of late payment, interest will be charged at a rate of 1.5% per month on the due amount. Additionally, interest will also be levied if a wrong declaration is detected, in addition to the penalty.

FAQs on MCG Property Tax

  • How can I verify my property ID in Gurugram?

    You can verify your property ID by referring to your previous tax receipts or by accessing the official website of MCG and providing the necessary property details.

  • Is there a requirement to pay tax for my parking lot?

    No, under the new system, you are completely exempt from paying property tax for your parking lot.

  • Will I be exempted from property tax if the size of my house is 1000 square feet?

    Yes, if you own a self-occupied property with a house carpet area of up to 2000 square feet, you are eligible for a full tax rebate.

  • What is the tax rebate provided by MCG?

    Property owners who settle all their property tax arrears within 45 days of the notification issuance are eligible for a one-time rebate of 30%. Additionally, a 10% rebate is offered to those who make their tax payments before 31 July of the respective year.

  • How can I obtain my property tax ID in Gurgaon?

    To find your property tax ID, you can refer to your previous property tax receipts that you have paid. If you are still looking for it through this method, you can visit the nearest Municipality office in your area and seek assistance from the officials there.

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