Owners of residential properties in Delhi, are liable to pay property tax to the Municipal Corporation of Delhi (MCD) every year. Based on the area/colony in which your property is located, you would need to pay your property tax, either to the South Delhi Municipal Corporation (SDMC), the North Delhi Municipal Corporation (NDMC) or the East Delhi Municipal Corporation (EDMC). Delhi is also divided into eight categories, from A to H, based on the values of properties in the colonies belonging to each category. The rate of property tax and the unit area value (assigned value per sq metre of the property) differ for all the eight categories.
How to calculate property tax for a residential property in Delhi
The MCD uses the ‘Unit Area System’ for property tax calculation all over the city. The formula used for calculation is as follows:
Property tax = Annual value x Rate of tax
Annual value = Unit area value per sq metre x Unit area of property x Age factor x Use factor x Structure factor x Occupancy factor
Rate of tax: Tax rates for properties in categories A to H are published by the MCD every year.
Unit area value: This is an assigned value per sq metre of the built-up area of a property. The unit area value per sq metre differs for categories A to H.
Unit area of property: The built-up area (not the carpet area) in sq metres is taken into consideration for computation.
Age factor: Newer properties are taxed higher than older ones, based on the age of the property. The value of this factor ranges from 0.5 to 1.0.
Use factor: Residential properties are taxed lower than non-residential ones. The value for residential properties is ‘1’.
Structure factor: RCC constructions are taxed higher than low value constructions.
Occupancy factor: Properties that are rented out are taxed higher than self-occupied ones.
Rebates on property tax
The MCD offers rebates on some property tax payments:
- If your property tax is paid as a lump sum in a single instalment during the first quarter of the year, you will be eligible to receive a rebate of 15 per cent, on your total tax amount.
- A rebate amounting to 10 per cent of the annual value is given to DDA/CGHS flats, up to 100 sq metres.
- A rebate of 30 per cent is given to senior citizens, women and the physically challenged, only on one property.
Paying your property tax
The most convenient way to pay your property tax, is to pay it online on the MCD’s website, using internet banking, debit or credit card. In the last year, the MCD has invested significantly in making its websites more efficient and technologically advanced, in a bid to encourage more online property tax payments.
Once you go to the MCD’s website, you will need to choose from the following three links, based on your area’s municipal corporation:
In case of delayed payment of your property tax, the MCD will levy a one per cent fine every month on the unpaid amount. After you make your payment on the MCD’s website, ensure that the system updates your record and no outstanding amounts are shown against your account. If there are any errors, have them corrected immediately.