Property Tax In Delhi – All You Need To Know!

What is property tax?

Property tax is an annual amount paid by a landowner to the local government or the municipal corporation of his area. These taxes are levied on all lands and buildings and it is varied from region to region depending upon the circle rate.

Why should we pay property tax?

There are various advantages of paying property tax in India. Generally, we pay property tax to the Municipal Corporation of a particular area every year. By paying this tax local municipal body provides certain important services and facilities to us such as cleanliness in the area, water supply, and maintenance of local roads, drainage, and other civil facilities.

The best advantage of paying property tax is it allows the municipal bodies to get revenue, for funding all the services that it provides.

What is property tax in Delhi?

Property tax in Delhi is usually calculated based on the annual property value and this tax is applicable according to the different categories. The capital city is divided into 8 different categories, segmented from A to H. There are 3 Municipal corporations responsible for collecting property tax, including North Delhi Municipal Corporation or NDMC, South Delhi Municipal Corporation or SDMC, and East Delhi Municipal Corporation or EDMC.

The tax is varying from different property types, this rate is important for determining the total tax payable. It is mandatory to pay property tax in Delhi who has owned property and they can pay it online or offline. After paying the tax, must receive the tax receipt, it’s an important document that is necessary to claim benefits such as loans against property tax exemptions.

Property Tax rates in Delhi in 2021-22 (Table)

Rebates on property tax in Delhi

Property Tax in Delhi

The MCD offers rebates on some properties. If you have paid as a lump sum in a single installment during the first quarter of the year then automatically you will be eligible to receive a rebate of 15 percent, on your total tax amount.

Read the terms and conditions before applying the rebate on tax categories. Give a look at the property tax rebate for the following categories. (Table mentioned below)

Steps to pay property tax in Delhi

There are various ways to pay property tax. The Municipal Corporation of Delhi allows the resident to pay property tax online and here are some steps that you have to follow.

Step 1 – visit the official website of the Municipal corporation of Delhi and select your area
Step 2 – Click on ‘Online Filing of Property Tax Returns under the ‘Property Tax’ tab
Step 3– Read the terms and conditions and then ‘click here to file property tax’
Step 4- Input your property ID, or select the option stating, ‘Click Here to file your return if property ID has not been allotted earlier’
Step 5- fill in property details such as ownership details, property details, contact details, building details, and tax calculations
Step 6- Enter details of any previous arrears that you are yet to submit
Step 7- cross-check and verify once before submitting your details
Step 8- Download your property tax bill

Property tax payment through MCD online app

South Delhi Municipal Corporation (SDMC) introduced an application that enables citizens to pay the MCD property tax, without facing any hassle. The app has been made for all three municipal corporations, namely, NDMC, SDMC, and EDMC.

So first, the user has to download the app and visit the MCD online portal where the user will get online service, and clicking on that option will redirect you to the page with quick links to access various online services.

Latest news for MCD property taxpayers FY 2020-21

SDMC extends MCD property tax payment deadline

SDMC has decided to extend the deadline for availing its amnesty scheme 2021-22 till January 31, 2022, for property tax payment with a 100 percent waiver to both interest and penalty. This modification has been made to facilitate taxpayers who are facing difficulties during the COVID-19 pandemic owning to lockdowns and restrictions.

Furthermore, taxpayers can get a waiver of 80 percent of interest and 100 percent of penalty by paying the tax dues till March 31.

SDMC launches amnesty property tax scheme for city’s unauthorized colonies

South Delhi Municipal Corporation (SDMC) rolled out an amnesty scheme on October 29, 2021. This scheme is applicable to all unauthorized colonies (except affluent unauthorized colonies) such as Lal Dora Village and to the extended population of these villages and properties allotted to Kashmiri migrants by the government, which will be operated till March 31, 2022.

Under this scheme owners of residential properties are allowed to pay a year’s property tax and owners of non-residential properties are allowed to pay three years of property tax in lieu of their previous property dues. Property tax prior to FY 2021-2022 will be waived for the residential property owners if they pay MCD property tax 2021-22. Similarly, property tax prior to FY 2019-2020 will be waived for the residential property owners if they pay tax for the financial years 2019-2020,2020-2021, and 2021-2022.

NDMC introduces app for property taxpayers

The New Delhi Municipal Council (NDMC) has come up with a new app, so that through app property tax can pay the tax and get easy access to various services, such as property tax-self assessment, mutation, amalgamation and bifurcation, vacancy remission, and property tax returns. The app is named by the property tax Enterprise Resource Planning (ERP) module, which will reduce manual efforts and make the process smooth and efficient.

FAQ

How to calculate property tax in Delhi?

The MCD uses the ‘Unit Area System’ for property tax calculation all over the city; you can calculate the tax by using this given below formula

Property tax = Annual Value X Rate of Tax where Annual Value = Unit area value per sq meter X Unit area of Property X Age Factor X Use factor X Structure factor X Occupancy Factor.

Can users pay online property tax in Delhi?

Yes, users can pay property tax online on their properties for NDMC, SDMC, and EDMC by using credit card/ debit cards and internet banking on the official website of the Municipal Corporation in Delhi.

How to pay property tax online in Delhi?

Paying property tax online is the most convenient way via MCD’s website, using internet banking, debit, or credit card. Once you go through the website, you will get three links to choose from according to your municipal corporation. Enter your property ID and then you are done.