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MCD Property Tax

Property Tax Delhi

Last Updated 05th Aug 2020

  • In Delhi, the whole area is divided under 8 categories from A to H.
  • The formula adopted by MCD for property tax calculation is; Annual Value x Rate of Tax.
  • Each category from A to H has a different rate of tax for residential, commercial and industrial property.
  • For each category, value has been pre-assigned for the unit area.
  • Property tax payment in Delhi can be made online or offline.
INCOME TAX CALCULATOR

Municipal Corporation Delhi - MCD Property Tax

The Municipal Corporation of Delhi revises the Property Tax rate in Delhi every year. These rates vary based on the location, age and usage and type of the property. Property owners can pay tax on land and property to North, South or East Municipal Corporation of Delhi according to the zonal area which is further divided into different wards and colonies.

MCD Property Tax Introduction

A property tax is the major source of revenue for any Municipal Corporation. This tax is paid by property owners on all lands and buildings, including on the vacant land. In Delhi, the property tax is maintained by Municipal Corporation of Delhi (MCD). The rates on the Property Tax are reviewed every year by the council of MCD. As per the current method for Property Tax Calculation, the Property tax in Delhi is collected by Unit Area System, which varies based on factors such as built-up area, age, location and type of property. Further, MCD has divided the Delhi into three regions for Property Tax collection which are North Delhi MCD, East Delhi MCD, and South Delhi MCD

SDMC - South Delhi Municipal Corporation Property Tax

South Delhi Municipal Corporation provides both offline and online mode for filing Property Tax returns and payments. The offline mode of making payments was recently introduced by SDMC when citizens complained about online methods. Property owners of South Delhi can pay Property taxes according to their zonal area, which is divided into five zones: Central, South, West, Najafgarh and, Head Qtrs.

North MCD - North Delhi Municipal Corporation Property Tax

NDMC has categorised the North Delhi into seven zones which are Karol Bagh, Civil Lines, Narela, Rohini, Keshavpuram Zone, City - S P Zone, Head Qtrs. These zones are further divided into wards and colonies. Property owners of North Delhi can file the Property Tax through online and offline modes. North MCD recently introduced a new user interface for paying Property Tax online. Now, users can easily file returns for Property for previous as well as current financial year.

List of Delhi Cities Divided into Categories

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 NDMC property tax

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

Annual Value= Unit area value per sq metre * Covered area of property * Age factor * Use Factor * Structure Factor * Occupancy Factor * Flat Factor.

  • The value of built-up area per square metre is known as Unit area value per sq metre.
  • The covered area of the property includes the area of all floors, including thickness and space covered in verandah, staircase, garage etc.
  • The age of the building also determines the rate of Property Tax. The tax on the new property is higher than the old property.
  • The usage factor assigned by MCD is based on how the property is used.
  • The structure factor is based on whether the land is a pucca house, semi-pucca or Kutcha.
  • Occupancy factor means whether the property is self-occupied or rented.
  • The flat factor varies based on the total covered area of flats.

House Tax Rates in Delhi 2020 - 2021

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 takes 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 = ₹ 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 = ₹ 30,000

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

Property tax to be paid is ₹ 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 ₹ 2,520 instead of ₹ 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.

Steps for MCD Property Tax Payment

MCD Property Tax Online Payment

To make payments for Property Tax online, you need to perform five necessary steps:

  • Step 1: Visit the official website of MCD by clicking on https://mcdonline.nic.in.official. Next, choose the NDMC, SDMC or EDMC to pay taxes to your respective Municipal Corporation.
  • Visit Website
  • Step 2: As you click on your portal, you will get an option to sign up or log in on the top of the screen. To register on the website, click on Sign Up.
  • Select Sign up or Login
  • Step 3: Now, you will be redirected to a new page. Click on Sign up at the bottom of the screen and fill all the details and click on the submit button.
  • Sign up
  • Step 4: After a one-time registration process, you can now log in the MCD portal using your registered mobile number. To login, visit the official web portal and select South Delhi MCD, North Delhi MCD, or the East Delhi MCD and then login by clicking on login on the top of the screen.
  • verify otp
  • Step 5: Once you have logged in, you can now pay property tax. However, to pay tax, you need to register your property as well. The registration of property can be done using the Unique Property Identification Number. As you log in the website, you will find three options, ‘Search Property on UPIC’, ‘Register new property for tax payment’ and ‘Apply for new UPIC’. If you already have a UPIC, you can see the property details by clicking on the 1st option. If you don’t have the UPIC number of the property, apply for a new UPIC and then after getting a UPIC number, register your property using the 2nd option. To apply for new UPIC, you must have details like Ownership category and type of property, location details, address etc.
  • Register Your Property
  • Step 6: As you will search property on the web portal by entering the UPIC you will find all property details with Property ID, colony, ward etc. Find the property for which you want to pay taxes. Now, against each property, you will find the button ‘Actions’. Click on the action button and then on the link ‘Use this property to pay tax’.
  • Select Property to Pay Tax
  • Step 7: Once you have searched the property details, you can now calculate the property tax by selecting the property details. After calculating the tax on your property, you can finally pay tax and collect the receipt of tax payment in PDF format.

How to file property tax returns online in Delhi?

To file property tax return:

  • Go to the official website of municipal corporation "http://www.mcdpropertytax.in/"
  • 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

MCD Property Tax Offline Payment

You can also pay property tax of your property using offline modes at the respective ITZ (In-the Zone) cash counters of your Municipal Corporation. There are about 800 ITZ cash counters all across Delhi. You can immediately get the receipt of your payment as you make the payment. You can also make payment through cash, cheque or DD at Axis bank, HDFC Bank and Citizen Service Bureau Centres. If you are making a payment through a cheque or DD, it should be drawn in favour of “Commissioner, North Delhi Municipal Corporation”, if you are paying taxes to NDMC.

Due Dates, Rewards and Exemption/Concession from Payment of MCD Property Tax

If the property owners do not pay the property tax, they have to pay a penalty charge of 1% every month.

You can get the rebate on the property tax in the following scenarios:

  • If you pay the entire property tax of the current financial year as a lump-sum payment, you can get a rebate of 15% on the total tax amount.
  • Senior citizens, women, ex-servicemen and physically challenged can get 30% concession on the property tax of one property up to 200 sq.metres.
  • The owners of the group housing flats can get a grant of 20% if they pay the property tax on or before 30th June of the current financial year.

Further, you are exempted from paying property tax in the following situations:

  • If the property in Delhi is used for public worship, public burial or cremation grounds, for charitable purposes.
  • Agricultural lands except the dwelling areas are excluded from paying property tax.
  • If the property is owned by war widow /Gallantry Award winner/South MCD employee handicap.
  • If the property is martyred.

FAQs

How is property tax calculated in Delhi?

To calculate property tax, the MCD uses the Unit Area System as recommended by the Delhi government. So, the formula used by MCD for calculating the property tax is:
Annual Value x Rate of Tax = Property Tax

What is the last date for property tax in Delhi?

The due date to submit the entire property tax in a lump sum is June 30 of each year. Making the payment within the period attracts a 15% rebate on the entire tax amount.

How do I find out what my property taxes are?

The best way to find your property tax is to use a property tax calculator which is available for free online. You can also choose to calculate it manually, but for that, you need to make sure you know the right formula and the values.

How can I pay Delhi property tax online?

To pay property tax in Delhi online, follow these steps:

  • Visit the mcdpropertytax.in and the Municipal Corporation under which your property falls.
  • In the next step, tick the option of terms and conditions and proceed towards filing the property tax.
  • Now fill the required details property ID, ledger folio number and other details.
  • Choose the payment method, make the payment. After payment, you will get the receipt which you can print.
  • The challan will be generated, make sure you save the challan after making the payment.

How do I fill my house taxes online?

You can fill your house taxes online by visiting the official website of the concerned municipal corporations property tax following it up by filling the required details, making the payment and saving the challan after the payment is made.

How is NDMC property tax calculated?

NDMC calculates Property Tax on Annual Value Basis, which varies according to the Unit area value per sq metre of the built-up area, the area covered by property, Age, Use and structure of the property. The rate of property tax further may vary if the property is owned by you or rented.


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