Before we get into the details of property tax in Delhi, we request our readers to go through our article on ‘BBMP property tax’ wherein we have discussed the introduction of property tax in general and also tax benefits. With that background, we straight away start a discussion on property tax in Delhi.

Formula For MCD Property Tax Computation

MCD levies property tax on all buildings including vacant land. Out of the three methods of computing property tax (i.e., Annual Rental Value, Capital Value System, Unit Area System), MCD has adopted the Unit Area System which is also recommended by the Government of India. Here's how it is computed:

Property tax = (Annual Value * Rate of tax)

Annual Value of a Building 

(Unit area value per sq metre * Covered area of the property * Age factor * Use factor * Structure factor * Occupancy factor)

Wherein,

• Unit area value per sq metre is fixed by the MCD depending on the classifcation and location of the property
• Covered area of property is total floor area in all the floor thereof, including the thickness of walls, space of covered verandah and courtyard, gangway, garage, common service area, staircase, and balcony including any area projected beyond the plot boundary and such other prescribed space
• Age factor ranges from 0.5 to 1,based on the age of the property. New properties are taxed higher compared to older ones
• Use factor is the factor assigned by MCD based on the usage of property
• Structure factor is based on the type of construction such as RCC or normal
• Occupancy factor changes considering whether the property is self-occupied or rented out.

Annual Value of a Vacant Land 

(Unit area value per sq metre * area of vacant land * Use factor * Occupancy factor * 0.3)

It may be noted that if different portion of building are put to different uses or the building has been constructed in stages, annual value needs to be computed for each such portion separately.

Rate of Property Tax in Delhi

Rates of property tax for different categories of property are as under:

Due Date, Penalty And Other Rewards

• Entire property tax paid in one lump sum before the first quarter or 30th June is given a rebate of 15% on the total tax
• Any delay in the payment of property tax will attract penal interest at 1% for every month of delay

Steps For Payment Of MCD Property Tax

Online Payment

Payment online can be made using the property ID allotted to the property which can be obtained from the previous property tax paid receipt.

Steps:

• Visit the website and scroll down to see ‘online services’ tab.

• Select Property Tax and then Login by entering your registered email id. If you are a new user, then sign up before proceeding further.
• Enter either property ID and click on ‘Submit’.
• In case you do not have a property ID allotted, click on ‘Click here to file your return if property ID has not been allotted earlier’
• You will be directed to a page containing property ownership details
• Enter the property details required and automatically compute tax and click on submit
• Pay tax either by using a credit/debit card or net banking
• Click on ‘generate challan’ and the official challan will be displayed

The online portal also provides details of property tax arrears and penalties, in addition to calculating late fees and interest amounts.

Offline Payment

Property tax can be paid offline at any of the ITZ cash counters in Delhi. After the payment, an instant receipt containing the property tax ID is issued.

Steps For Payment Of MCD Property Tax via an APP.

The Municipal Corporation of Delhi has launched an app for easy payment of property taxes.

You can refer to the following steps to log in to the app and opt for the tax payments easily:

• Login
  Download the MCD app from Play Store and then register using your mobile number and email address.
• Register Property Information
  Select the UPIC( Unique Payment Identification Option) and choose ‘Pay Tax’ option. Furthermore, select the financial years and click on ‘Submit’.
• Pay Tax
  Determine the tax amount and select one of the options provided to proceed with the digital payment.
• Download Receipt
  Download the tax payment receipt to your device and keep it carefully for future reference.

MCD Property Tax Receipt Download

Downloading the MCD property tax receipt involves a simple process.  Go through the following steps for MCD property tax receipt download:

• Visit the official website of the Municipal Corporation of Delhi.
• Log in to your MCD account by entering your registered mobile number.
• Click on the “Generate OTP” option and the OTP will be shared on your registered mobile and email ID.
• Enter the OTP and select the “Login” option.
• Select the part of Delhi where your property is situated for which you wish to pay the tax. Choose the right option among South Delhi Municipal Corporation (SDMC), North Delhi Municipal Corporation (NDMC), West Delhi Municipal Corporation (WDMC) and East Delhi Municipal Corporation (EDMC).
• Choose your property type (commercial or residential).
• Enter your property ID or address.
• Preview the details you entered and click on “Submit”.
• The website shall display the MCD property tax receipt for the selected financial year. Verify the details given on the receipt and navigate to the "Download" option.
• Download the receipt and print it to have a hard copy for any official purposes.

Exemption/Concession From Payment Of Property Tax

While we have provided below a list of all exemptions/concessions, it may vary depending on whether the property belongs to North, South or East MCD.

Exemption

• Building or vacant land exclusively occupied and used for public worship, public burial or cremation grounds, heritage lands or buildings or occupied and used by any society or body for a charitable purpose
• Agricultural land and buildings
• Land or building vested in the corporation in respect of which the property tax be leviable primarily on such corporation
• Property owned by war widow/Gallantry Award winner being permanently used for self residence and no portion is let out
• Property belonging to individuals martyred while serving in police or paramilitary forces
• Owned by South MCD employee handicapped (fully) on duty
• Property owned by Award-winners in international sports

Concession

• A concession of 30% is given to Senior citizens, women and physically challenged and ex-servicemen for one property 
• Rebate of 20% to group housing flats up to 30th June of the financial year
• Rebate of 10% to DDA/CGHS residential up to 100 sq mts of covered/build-up area

Conditions for Availing Concession

• Rebate is applied for a maximum of 200 sq mtrs of total build-up/covered area except in the case of DDA/CGHS residential which has a different limit
• Use factor should be residential
• Occupancy factor should be self-occupied
• In case of joint owners, a rebate will be applied to the property share of owners who are under the rebate category.

Conclusion

MCD property tax is one of the most important source of revenue for the development of the infrastructure and administrative operations in Delhi. Therefore, if you are a property owner in Delhi or you are planning to purchase a property in the city, it is highly imperative for you to understand the significance of MCD property tax.

Thus, make sure you understand MCD property tax, its implications and stay updated on the recent changes in property tax rates.