MCD Property Tax
Residential
property owners in Delhi are liable to pay property tax to the Municipal
Corporation of Delhi (MCD). MCD property tax is collected annually from
property owners. After collecting funds, the municipal corporation uses tax amounts
to provide civic facilities.
Anyone who
owns property in Delhi, is liable to pay property tax to MCD. If an owner pays
his/ her property tax before the deadline (The deadline for tax, announced by
Delhi Municipal Corporation (DMC)), they get rebates. Also, if someone does not
pay property tax before the deadline, then he/ she has to face a penalty.
Those who
pay MCD property tax before the deadline are eligible to take a 15% discount on
the total tax payable amount. On the other hand, for people who don’t pay property
tax on time, 1% fine is levied each month on the tax payable amount.
On 12 January 2021, The Municipal Corporation of Delhi was cleft into three bodies.
- North Delhi Municipal Corporation (NDMC)
- East Delhi Municipal Corporation (EDMC)
- South Delhi Municipal Corporation (SDMC)
These
bodies are responsible for the property tax collection in their area.
Let’s come
to point how to calculate property tax and how to pay it.
Firstly,
we will see the calculation of MCD property tax:
Computation
of property tax is easy. By using the below formula, taxpayers can calculate their
property tax.
Property tax = Annual Value * Rate of Tax
For
calculating annual value, taxpayers have to have their property details.
Note:
1. The formula for annual value = Unit
area value per square meter * unit area of property * age factor * use factor *
structure factor * occupancy factor
2. Tax rate = MCD introduces tax rate
for category A-H every year.
Delhi city
is divided into eight categories, from A to H based on the property structure
and value.
List of Delhi cities split into categories
Category |
Colonies |
A |
Anand Niketan, Basant Lok DDA Complex, Bhikaji Cama Place, Friends
Colony, Friends Colony East, Friends Colony West, Golf Links, Kalindi Colony,
Lodi Road Industrial Area, Maharani Bagh, Nehru Place, New Friends Colony,
Panchshila Park, Rajendra Place, Shanti Niketan, Sunder Nagar, Vasant Vihar |
B |
Anand Lok, Andrews Ganj, Defence Colony, Greater Kailash I, Greater
Kailash II, Greater Kailash III, Greater Kailash IV, Green Park, Gulmohar
Park, Hamdard Nagar, Hauz Khas, Maurice Nagar, Munirka Vihar, Neeti Bagh,
Nehru Enclave, Nizamuddin East, Pamposh Enclave, Panchsheel Park, Safdarjang
Enclave, Sarvapriya Vihar, Sarvodaya Enclave |
C |
Alaknanda, Chittaranjan Park, Civil Lines, East of Kailash, East Patel
Nagar, Jhandewalan Area, Kailash Hill, Kalkaji, Lajpat Nagar I, Lajpat Nagar
II, Lajpat Nagar III, Lajpat Nagar IV, Malviya Nagar, Masjid Moth, Munirka,
Nizamuddin West, Panchsheel Extension, Punjabi Bagh, Som Vihar, Vasant Kunj |
D |
Anand Vihar, Daryaganj, Dwarka, East End Apartments, Gagan Vihar,
Hudson Line, Indraprastha Extension, Janakpuri, Jangpura A, Jangpura
Extension, Jasola Vihar, Karol Bagh, Kirti Nagar, Mayur Vihar, New Rajinder
Nagar, Old Rajinder Nagar, Rajouri Garden |
E |
Chandni Chowk, East End Enclave, Gagan Vihar Extension, Hauz Qazi,
Jama Masjid, Kashmere Gate, Khirki Extension, Madhuban Enclave, Mahavir
Nagar, Moti Nagar, Pahar Ganj, Pandav Nagar, Rohini, Sarai Rihilla |
F |
Anand Parbat, Arjun Nagar, Daya Basti, Dilshad Colony, Dilshad Garden,
BR Ambedkar Colony, Ganesh Nagar, Govindpuri, Hari Nagar, Jangpura B, Madhu
Vihar, Majnu Ka Tila, Mukherjee Park Extension, Nand Nagri, Uttam Nagar, Zakir
Nagar Okhla |
G |
Ambedkar
Nagar Jahangirpuri, Ambedkar Nagar East Delhi, Amber Vihar, Dabri Extension,
Dakshinpuri, Dashrath Puri, Hari Nagar Extension, Vivek Vihar Phase I, Tagore
Garden |
H |
Sultanpur
Majra |
List of the Property tax rate for each category:
Category |
The tax rate on residential property |
The tax rate on commercial property |
The tax rate on industrial property |
A |
12% |
20% |
15% |
B |
12% |
20% |
15% |
C |
11% |
20% |
12% |
D |
11% |
20% |
12% |
E |
11% |
20% |
12% |
F |
7% |
20% |
10% |
G |
7% |
20% |
10% |
H |
7% |
20% |
10% |
These are
the property tax rate of each category. Individuals who belong to A-H
categories have to pay MCD property tax according to the mentioned tax rate.
Detail of
annual value formula
Unit area value per square meter:
This value is
allocated for the built-up area of the property. The value of the unit area per
square meter varies for categories A to H.
Category |
Unit area value (Rs per square
meter) |
A |
630 |
B |
500 |
C |
400 |
D |
320 |
E |
270 |
F |
230 |
G |
200 |
H |
100 |
Unit area of property: For the computation of annual value,
the built-up area of the property (in square meter) is taken for the calculation.
Note: Tax is
payable only on the built-up area and not on the carpet area.
Age factor: Newer properties are taxed higher. On other
hand, less tax is charged on the older property according to the age of the property. The value of this range varies from 0.5 to 1.0
Construction year |
Age factor |
Before 1960 |
0.5 |
1960 to 1969 |
0.6 |
1970 to 1979 |
0.7 |
1980 to 1989 |
0.8 |
1990 to 1999 |
0.9 |
2000 onwards |
1.0 |
Use factor: Residential use pf properties are taxed lower
and non- residential are taxed higher.
Use of property |
Use factor |
Residential Purpose |
1 |
Non-residential public purpose |
1 |
Non-residential public utility |
2 |
Industry, entertainment, and clubs |
3 |
Restaurants, hotels up to 2 stars
rating |
4 |
3star and above hotels, towers,
hoarding |
10 |
Structure factor: Reinforced cement concrete (RCC) constructions
are taxed higher property tax and on low-value constructions are taxed lower
property tax.
Construction type |
Structure factor |
Pucca (RCC Building) |
1.0 |
Semi-Pucca |
1.0 |
Kuhcha |
0.5 |
Occupancy factor: MCD charges
high property tax on the rented property than self-occupied ones.
Occupancy Type |
Occupancy Factor |
Self-occupied |
1.0 |
Rented out |
2.0 |
Vacant plot |
0.6 |
Example of MCD Property Tax Calculation:
Consider,
there is a self-occupied property of 600 square meter in category C which was
built-in the year 1987. The construction type of the building is Pucca and it’s
being used for residential purposes.
Formula:
Annual
value: Unit area value per square meter * unit area of property * age factor *
use factor * structure factor * occupancy factor
Values:
Unit area
value: Rs 400 per square meter
Unit area: 600
square meter
Age factor:
0.8
Use factor:
1
Structure
factor: 1.0
Occupancy
factor: 1.0
Putting
the values in formula:
Annual
value: 400 * 2000 * 0.8 * 1 * 1.0 * 1.0 = ₹ 192,000
Tax rate =
11% (As per category C)
Property
tax = annual value * tax rate
192,000 *
11% = ₹ 21,120
Net
property tax value = ₹ 21,120
In this way
taxpayers can calculate their MCD property tax value.
MCD Property Tax Payment Online & Offline
Taxpayers
can pay their taxes offline and online.
Offline
Payment: Visit In-The-Zone (ITZ) cash counter to
pay the taxes.
Online
Payment: To pay MCD
property tax online:
Ø Visit the official site of MCD
https://mcdonline.nic.in.
Ø Then choose NDMC, SMDC, or EMDC to
pay your property tax to the respective municipal corporation.
Ø After that, Use Sign-up or Log-in
option. If you are a new user, click on sign up else log in to your existing
account.
Ø To register, fill up the details and
Click on submit button.
Ø Once the registration is done, users
can log in by visiting the above-mentioned URL.
Ø After that, users need to choose
their corporation (NDMC, SMDS, or EMDC).
Ø Then, a new page will appear on the
screen. Fill in your property ID then click on submit button. Users can make
payments through internet baking, debit, or credit card.
Ø Finally, the MCD property tax payment is
done. Users can download the receipt in PDF form.
Note: If
you don’t have a property ID, then click on ‘Apply for new Universal Payment
Identification Code (UPIC). Then you will be redirected to an ownership page
details, fill in all the property-related details to generate your property ID
number.
Rebates
provided on property tax in Delhi:
Ø Rebate of around 10% of the annual value
to DDA/ CGHS flats up to 100 square meters.
Ø A rebate of 30% tax for senior
citizens, women, and physically challenged people only on one property having
covered space up to 200 square meters.
Ø If taxpayers’ property tax is paid as a lump sum in a single installment during the first quarter of the year, they are eligible to receive a rebate of 15%, on the total tax amount (as mentioned above).
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