Property tax rate in Delhi FY2019-2020

MCD house tax in Delhi

In Delhi, the property tax is calculated on the basis of Annual value method. Tax is payable to one of the three municipal corporations in Delhi, North Delhi Municipal Corporation or North MCD, South Delhi Municipal Corporation or South MCD and East Delhi Municipal Corporation or East MCD.

The city of Delhi is divided into eight categories from A to H based on the value of the property. List of colonies in each of the categories is as below:

Category Main 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, Dishad Garden, BR Amdedkar Colony, Ganesh Nagar, Govindpuri, Hari Nagar, Jangpura B, Madhu Vihar, Majnu Ka Tila, Mukheree Park Extension, Nand Nagri, Uttam Nagar, Zakir Nagar Okhla
G Ambedkar Nagar Jahangirpuri, Amdedkar Nagar East Delhi, Amber Vihar, Dabri Extension, Dakshinpuri, Dashrath Puri, Hari Nagar Extension, Vivek Vihar Phase I, Tagore Garden
H Sultanpur Majra

Calculation of property tax in Delhi

Property tax is levied as a percentage charge on the annual value of the property as determined by the MCD based on below criteria.

Property tax or House Tax = Annual value * Rate of tax

Property tax rates in Delhi 2019 - 2020 :

Category House Tax Rate on Residential Property Property Tax Rate on Commercial Property Property Tax Rate on Industrial Property
Category A 12% 20% 15%
Category B 12% 20% 15%
Category C 11% 20% 12%
Category D 11% 20% 12%
Category E 11% 20% 12%
Category F 7% 20% 10%
Category G 7% 20% 10%
Category H 7% 20% 10%

Calculation of Annual Value for Payment of Property Tax

Annual value is calculated as product of seven factors as given below:

Annual Value = Unit area value per sq mtr * unit area of property * age factor * use factor * structure factor * occupancy factor

A rebate of 30% is applicable on the net tax payable in case of females, senior citizens and disabled tax payers.

Unit Area Value – this is the assigned value per square of meter built-up area of the property

Category Unit area value – Rs. per sq mtr.
Category A 630
Category B 500
Category C 400
Category D 320
Category E 270
Category F 230
Category G 200
Category H 100

Unit area of property – this is the built-up area of property in square meters. Note that tax is payable on built up area and not on carpet area basis. The built up area is as certified by the developer or architect or by assessing officer of the MCD.

Age Factor – This factor tales into account the age of the building and provides for higher tax on newer properties and lesser tax on older properties in line with the market value. On the basis of age of the building, this factor ranges from 0.5 to 1.0.

Year of Construction 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 – This factor takes into account the usage of the property and provides for lower tax on residential use properties and higher tax on and non-residential ones.

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 star rating 4
3star and above hotels, towers, hoarding 10

Structure Factor – This factor provides for higher tax rate on RCC constructions and provides lower property tax rate on low value constructions.

Type of Construction Structure Factor
Pucca (RCC Building) 1.0
Semi-Pucca 1.0
Kuchcha 0.5

Occupancy Factor – MCD charges higher property tax on rented out properties while charging lower tax on self occupied ones.

Occupancy Type Occupancy Factor
Self occupied 1.0
Rented out 2.0
Vacant plot 0.6

Illustration of Calculation of Property Tax

Annual Value = Unit area value * unit area * age factor * use factor * structure factor * occupancy factor

Let’s say there is a self occupied pucca house property of 100 square meters in category B area constructed in the year 1985. How much property tax is to be paid?

Unit area value in Category B = Rs. 500 per sq meter

Unit area = 100 sq mtr.

Age factor= 0.6

Use factor= 1

Structure factor= 1.0

Occupancy factor= 1.0

Annual Value = 500 * 100 * 0.6 * 1.0 * 1.0 * 1.0 = Rs. 30,000

Property tax = Annual value * Rate of tax (as mentioned above in category B tax rate)
                       = 30,000 * 12% = Rs. 3,600

Property tax to be paid is Rs. 3,600. However, in case the owner is either a female or a senior citizen or a disabled person, a rebate of 30% would be applicable and the tax payable would be Rs. 2,520 instead of Rs. 3,600.

Further, if the entire property tax for the year is paid in a single installment, a rebate of 15% is available to all taxpayers.

Rebate on Property tax:
  • If payment of tax in lump sum is done in single installment during first quarter of the year then you will get a rebate of 15% over total tax amount.
  • No rebates on payments in quarterly installments.
  • In case of late payments interest @1% per month will be charged.
  • Rebate of around 10% of annual value to DDA/CGHS flats up to 100 sq. mtrs
  • A rebate of 30% tax for senior citizens, women, and physically challenged only on one property having covered space up to 200 sq. mtrs.

How to pay property tax online in Delhi

  • Go to the official website of municipal corporation Click Here
  • Choose your area’s municipal corporation
  • Enter the Property identification number and attach other property related documents
  • After entering all the required details, Payment process will start through Credit/debit card
  • After payment completion the challan print out can be taken.

How to file property tax return online in Delhi

To file property tax return:

  • Go to the official website of municipal corporation Click Here
  • Choose your area’s municipal corporation
  • Firstly you have to quote the property ID
  • Simultaneously, all the details under your property ID will come like zone, sub zone of property, type of occupancy
  • As per the accommodation total return will be calculated
  • And you can pay your return online through Credit/debit card
  • After payment you can take out the receipt

Property tax in other cities

Click below to know about property tax rates in other cities

Property tax Authorities
Property tax in Gurgaon mcg
Property tax in Faridabad mcf
Property tax in Bangalore bbmp
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