How to Pay MCD Property Tax Payment Online? | Know About MCD Property Tax Calculation Delhi

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).