Municipal Corporation Delhi (MCD) Property Tax: Know all the Details

Taxes are the primary source of income for a government and Property Taxes the tax imposed on real estate owners by the municipal authorities.

The word ‘property’ pertains to all real estate tangible in nature. It is owned by an individual and includes houses, premises rented to third parties and office buildings.

Municipal Corporation Delhi (MCD) Property Tax

The property tax department of MCD attends to the levy and collection of the property tax and service charges on private properties as well as the Government. Both these taxes are mandatory and are levied on all Lands and Buildings in Delhi. According to the Hon’ble Supreme Court directive, the properties of the Government of India completed after 26.01.1950 are liable to pay a service charge. It is a percentage of the rateable value of lands and buildings and the rates of taxes are determined by the council on a year-to-year basis.

The Delhi Nagar Nigam or the Delhi Municipal Corporation (DMC) was one of the largest Municipal bodies of the world. In 2012, the DMC was trifurcated into three new bodies:

• The South Delhi Municipal Corporation (SDMC)
• The North Delhi Municipal Corporation (NDMC)
• The East Delhi Municipal Corporation (EDMC)

They are part of the local bodies in the National Capital Territory of Delhi, the others being, New Delhi Municipal Council and Delhi Cantonment Board.

South Delhi Municipal Corporation (SDMC)

If you have a property of your own in South Delhi, you will have to pay property tax to the South Delhi Municipal Corporation. The South MDC occupies an area of 656.91 sq. Km and is sub-divided into four zones having 104 wards. The zones of South Delhi are:

• Central
• South
• West
• Najafgarh Zone

The South Delhi Property Tax payment can be made both online and offline.

North Delhi Municipal Corporation (NDMC)

The owners of property in North Delhi areas must pay property tax to NDMC, the full-form of which is North Delhi Municipal Corporation.

NDMC occupies an area of 636.37 sq. Km is divided into six zones having 104 wards. The zones of North Delhi MCD are:

• City-SP Zone
• Civil Lines
• Karol Bagh
• Keshav Puram
• Narela
• Rohini

The process of payment of North MCD property tax is simple and can be paid online and offline.

East Delhi Municipal Corporation (EDMC)

People living in East Delhi having their property must pay their property tax to East Delhi Municipal Corporation.

EDMC occupies an area of 105.98 square km. and is divided into 3 zones having 74 wards. The three zones are

• Sh. North Zone
• Sh. South Zone
• Headquarters

Calculation of Property Tax Delhi

The MCD Property Tax, Delhi uses the ‘Unit Area System’ for the calculation of property tax. The formula for calculating MCD Property Tax is:

Property Tax = Annual Value x Rate of Tax

where Annual Value = Unit area value x unit area x age factor x structure factor x occupancy factor and,

Rate of tax = the rate of tax published by the MCD of A-H categories for the year. Delhi is divided into 8 categories segmented into A-H based on which the property tax rates are given.

The Property Tax Rates in Delhi for 2021-22

Calculation of Annual Value of Payment of Property Tax

Annual Value = Unit area value x unit area of property x age factor x structure factor x occupancy factor; where,

Unit area value- This is the value per square meter assigned for the built-up area of the property.

Unit area of the property- the total built-up area in square meters (not the carpet area)

Age factor- the age factor is attributed to the property’s age, and the value of which ranges between 0.5 – 1.0. New properties are levied higher tax as their market value is more.

Occupancy factor- Properties that are let out are levied higher tax compared to the self-occupied ones as the rent becomes an additional source of income.

Steps to pay Property Tax Delhi

Delhi is one of the few municipal bodies that gives you the option to pay House Tax online in addition to the traditional offline method prevalent everywhere.

Given below are the steps to follow if you want to pay the MCD Property Tax Delhi by any of the two methods.

How to Pay House Tax online?

• Visit the official website of MCD – mcdpropertytax.in
• You will see three boxes showing links to the three municipal bodies -SDMC, NDMC and EDMC. Click on the link according to the area.
• You will navigate to the Online Services page of the Municipal Corporation of your area. Click on the ‘Property Tax’ tab.
• You will have to log in using your registration or Sign up details.
  • If you are already registered, log in as per your choice of Sign up / Registration details.
  • If you are new and have not registered yourself,
    • you will find a link at the bottom of the page as ‘New User Click here for Sign up/Register. Click on the link.
    • First Choose Register as Citizen
    • Fill in your First Name, Father’s or Husband’s Name, country code.
    • Next, you will have an option to register using
      • Mobile number – Enter your mobile number and click on ‘Generate OTP’. Enter the OTP sent to your mobile and click on ‘Verify’. Enter your email id and submit.
      • Email-id – Enter your e-mail ID and click on ‘Generate OTP’. Enter the OTP sent to your e-mail and click on ‘Verify’. Enter your mobile number, login id and password as per your choice and submit.
• You will navigate to the search page to see your registered property details to calculate your tax. If you are already registered, search using the unique property id code (UPIC). If not, register your property and generate UPIC
• You will have to fill in the following details:
  • Ownership details: Ledger Folio number, nature of ownership, type of property, etc.
  • Property details: House number, correct address, etc.
  • Contact Details: Phone number, email-id, Bank details etc
  • Building details: floor no., covered area, .purpose of use etc
  • Add previous arrear, if any.
• Go through the entered details thoroughly and click on Accept button.
• Click on the ‘Submit’ button and make the payment.
• You can pay using a Credit card/Debit Card or Net Banking option.
• After the payment of Delhi Property Tax online, click on ‘Generate Challan’ to display the Pay online Challan Delhi.
• Download the Delhi Challan Online payment for future reference.

How to pay MCD Property Tax offline

You can pay Property Tax offline at any of the 800 ITZ cash counters spread across Delhi. You can pay by cash/cheque/ Demand Draft/Debit Card/ Credit Card. You will receive a receipt instantly stating the Tax ID.

You will have to know your House Tax ID to make the payment. You may have to generate a new one if you do not remember to take it with you, which may create a problem later.

Exemption for MCD Property tax

The MCD has exempted some individuals or bodies from payment of Property tax. They are:

• Vacant land or building which is being used as a place of worship/ public burial/heritage building or for some charitable purpose.
• If the property is used for agricultural purposes
• If the land or building  is vested in a corporation
• The property owner is an ex-serviceman or a war widow and uses the property for self-residence without renting out any portion of the house.
• The property of those martyred on police or paramilitary duty.
• The owner of the property is an employee of the south MCD and who is differently abled, but is on duty
• The owner of the property is a sportsperson who has won awards at many international games.

Rebates on Property Tax in Delhi

The MCD office Delhi has offered some rebates to the Taxpayers under certain circumstances:

•  15% discount on Lumpsum payment of Property Tax during the first quarter of the year.
• 10% discount on Annual Value to DDA or CGHS flats up to 100 square metres of area.
• 30% discount to physically challenged women and senior citizens for one property only.
• 30% discount on House tax of ex-serviceman
• 20% discount to group Housing Flats up to 30th June of the financial year.

Conditions to be fulfilled to avail of the rebate

• The rebate will apply to a maximum of 200 square metres of area.
• The nature of occupancy should be residential
• The use factor must be self-occupied
• If joint-owners, the share of the person who qualifies for a rebate will decide the amount of concession.

Penalty for Delayed Payment of Property Tax

The MCD charges a fine of 1% per month for delayed payment. The  Municipality offices declare the last date for Property tax payment. For example, the SDMC has extended the deadline for payment of the South Delhi Property tax in a lump sum with 15% rebate and 3% Covid incentive till  31st  July and the North MCD has extended the deadline till 15th July for the 2021-22 financial year.

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