Property tax in Delhi: Complete guide about EDMC, NDMC, SDMC


Property tax is a recurring charge that home owners have to pay every year. However, the tax amount varies from one location to another. This is a guide to paying property tax in Delhi

Owners of residential properties in Delhi, are liable to pay MCD 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 MCD 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 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 Where 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.

 

Property tax rates in Delhi in 2021-22

CategoryHouse taxProperty tax on commercial property
A12%20%
B12%20%
C11%20%
D11%20%
E11%20%
F7%20%
G7%20%
H7%20%

 

Unit area value

CategoryUnit area value (Rs per sq metre)
Category A630
Category B500
Category C400
Category D320
Category E270
Category F230
Category G200
Category H100

 

Age factor

Year of constructionAge factor
Before 19600.5
1960-690.6
1970-790.7
1980-890.8
1990-990.9
2000 onwards1

 

Use factor

Property typeUse factor
Residential property1
Non-residential public purpose1
Non-residential public utility2
Industry, entertainment and clubs3
Restaurants, hotels up to 2-star rating4
3-star and above hotels, towers, hoarding10

 

Structure factor

Construction typeStructure factor
Pucca (RCC Building)1.0
Semi-pucca1.0
Kuchha0.5

 

Occupancy factor

Occupancy typeOccupancy factor
Self-occupied1.0
Rented out2.0
Vacant plot0.6

 

Calculation method of MCD property tax:

Consider, you have a 1,000-sq ft self-occupied residential property in a colony which comes under Category B.

Unit area value= Rs 500 per sq metre

Unit area = 100 sq metre.

Age factor= 0.6

Use factor= 1

Structure factor= 1.0

Occupancy factor= 1.0

Annual Value = 500 x 100 x 0.6 x 1.0 x 1.0 x 1.0 = Rs 30,000

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

Net property tax = Rs 3,600

 

Rebates on property tax in Delhi

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.

 

How to pay your property tax online

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: South Delhi Municipal Corporation (SDMC), North Delhi Municipal Corporation (NDMC), East Delhi Municipal Corporation (EDMC)

 

Pay Property Tax in Delhi Online

 

The colonies that fall under the above three corporations are listed on each of the south, north and east municipal corporations’ websites. Read the terms and conditions and check the box to proceed.

 

Pay Property Tax in Delhi Online

 

You will be redirected to a new page where you have to feed in your Property ID. You can use Net Banking, Credit Card and Debit Card for the payment.

 

Pay Property Tax in Delhi Online

 

In case of a 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.

 

Latest news for MCD property tax payers FY 2020-21

Update on April 19, 2021:

Vaccinated property owners to get an additional 5% rebate: NDMC

In a bid to encourage people to take vaccination against COVID-19, the north Delhi civic body has announced tax rebates for those taking their shots. According to the circular, owners or tax payers of residential properties only, will have the special incentive of getting a further rebate of 5% in the payment of property tax, over and above the 15% rebate enjoyed on timely payment of the annual tax, if they are eligible for vaccination and they get vaccinated and so do their eligible family members. The additional rebate is available till June 30, 2021.

Update on April 5, 2021:

EDMC discontinues manual filing of property tax 

The East Delhi Municipal Corporation has now discontinued manual filing of property tax. As a result, property tax owners would have to pay the dues online. The move is expected to increase transparency and efficiency. A new portal is already in the making and will be launched soon, to provide a seamless experience to property tax payers.

Update on March 23, 2021:

NDMC collects over Rs 500 crores through amnesty scheme

The amnesty scheme launched by the North Delhi Municipal Corporation, has finally managed to work, with the civic body claiming that it has collected Rs 569 crores as property tax till March 19, 2021. According to the civic body’s officials, the Corporation is now showcasing improvement in its financial health. According to NDMC officials, around 32,000 taxpayers have availed of the benefit of the amnesty scheme, so far. Meanwhile, the civic body has also extended the last date for the payment of property tax under the Amnesty Scheme 2020-21, up to March-end.

Update on February 24, 2021:

New amnesty scheme announced for north Delhi property owners

The North Delhi Municipal Corporation has rolled out a new property tax amnesty scheme, to extend benefits to other categories apart from residential. As per the new scheme, rebates will be given to property owners who have pending court cases. The amnesty scheme will also cover properties involving dishonoured cheques, where bank accounts or properties have been attached. As per the new amnesty scheme, property owners will be required to pay property tax (only the principal amount) for the financial years 2018-19, 2019-20 and 2020-21 and all pending dues will be waived off. Similarly, for non-residential properties, tax payers would be required to pay only the dues of the last three years and the current year. The scheme can be availed till March 3, 2021.

Update on January 28, 2021:

SDMC drops plan to hike property tax

The SDMC has finally dropped its plan to hike property tax this year and would look for other sources, to increase revenue. The civic body has decided to start doorstep collection of property tax from the 2021-22 financial year. The SDMC will also focus on bringing more people under its ambit, to improve revenue flow. This would be the 10th consecutive year that the SDMC will not be revising the property tax, which is one of the main components of its annual revenue.

Update on December 23, 2020:

SDMC proposes hike in property tax rate

The SDMC has recently proposed hiking the property tax, while also planning to change the categories as per which the levy is charged. As per the officials, the tax rate has not been revised in the last 10 years. If the proposal is passed, the number of categories will be reduced to two and 14% tax shall be levied on residential properties of the A and B categories and 12% on those falling in the C-H categories. At present, properties are divided into three categories – A and B, which attracts 12% tax; C,D and E, which attracts 11% tax; and F,G and H, which attracts 7% tax. The SDMC has also proposed to levy a 1% education cess on annual property tax and also proposed to hike the transfer duty tax by 1%, to meet the revenue targets. The civic authority also demanded to increase the tax on commercial properties, such as guest houses, lodges, inns, paying guest houses and restaurants without bar to 20% from 15%.

Meanwhile, the EDMC is also planning to levy 5% education cess and 15% betterment tax and professional tax on working professionals. Apart from this, the transfer duty will be increased to 3%, from the existing 2% for women and 4%, from the existing 3% for men. The civic body has also proposed to increase electricity tax from 5% to 6%.

Update on November 13, 2020:

NDMC announces 10% rebate for property tax payers 

The New Delhi Municipal Council has announced a 10% rebate in the property tax bills, if it is paid before December 31, 2020 and a 5% rebate for payment till January 31, 2021. The civic body has also authenticated the assessment list for this financial year, to determine the tax liability of the property tax payers in the NDMC area. The civic authority is also planning to organise camps in colonies in the next month, to facilitate senior citizens to pay the tax.

Update on July 1, 2020:

Property tax deadline extended amid Coronavirus

Keeping in mind the situation due to the Coronavirus pandemic, the three municipal corporations (EDMC, SDMC and NDMC) on June 30, 2020, has decided to extend the deadline for property tax filing for the financial year 2019-20 till July 31, 2020. All tax payers will be eligible for a 15% rebate on their tax bill, if they pay before the due date. Earlier, the last date was June 30, 2020. Corporations have also set up camps in various regions, to help people file the tax, manually and online, without visiting the corporation office.

Update on January 6, 2020:

East Delhi property owners get Unique Property Identification Code cards

The East Delhi Municipal Corporation, on January 3, 2020, began distribution of Unique Property Identification Code (UPIC) cards to property owners, a facility meant for widening the property tax net, officials said. At an event held at the EDMC headquarters at Patparganj, the civic authority also launched a property tax management portal.

A UPIC card contains details of property owners. The first three digits of the card will denote ward number, the next four digits will denote colony number and the remaining digits will specify the respective properties. “Under this project, grievance redressal will be done through a centralised call centre,” a senior official said. The EDMC has 795 colonies in 64 wards and a survey for issuing UPIC cards has been completed in 32 wards. By March 2020, it is hoped that all properties in east Delhi will be included in the property tax net, he said.

(With inputs from PTI)

EDMC proposes professional tax

The EDMC has increased property tax by three per cent in a few categories of colonies. EDMC Commissioner Dr Dilraj Kaur proposed levy of professional tax of Rs 100 per month for those who earn more than Rs 5 lakh a year and Rs 200 per month for those earning above Rs 10 lakh. Other proposals included betterment tax at the rate of 10 per cent of property tax, education cess at 5 per cent and garbage collection charges as per the SWM Act.

 

List of Delhi colonies divided into categories

CategoryMain colonies
AAnand 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
BAnand 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
CAlaknanda, 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
DAnand 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
EChandni 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
FAnand 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
GAmbedkar Nagar Jahangirpuri, Amdedkar Nagar East Delhi, Amber Vihar, Dabri Extension, Dakshinpuri, Dashrath Puri, Hari Nagar Extension, Vivek Vihar Phase I, Tagore Garden
HSultanpur Majra

 

FAQs

How to calculate property tax in Delhi?

The MCD uses the 'Unit Area System' for property tax calculation all over the city. The formula used for calculation is Property tax = Annual value x Rate of tax

How to pay property tax online in Delhi?

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. Once you go to the MCD's website, you will need to choose from the three links, based on your area's municipal corporation. Enter your property ID and you are done.

What are the rebates offered by MCD on property tax?

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 of 30 per cent is given to senior citizens, women and the physically challenged, only on one property.

How to pay EDMC property tax?

Pay Property Tax in Delhi Online

Select ‘East Delhi Municipal Corporation’ on mcdpropertytax.in. Check the box to proceed and feed Property ID to retrieve previous filings. Feed in the payment details and generate acknowledgment slip.

How to pay SDMC property tax?

Pay Property Tax in Delhi Online

Select ‘South Delhi Municipal Corporation’ on mcdpropertytax.in. Check the box to proceed and feed Property ID to retrieve previous filings. SDMC has allotted UPIC based on 2014-15 Property Tax Returns so you can use this Property ID for the payment. Feed in the payment details and generate acknowledgment slip.

How to pay NDMC property tax?

Pay Property Tax in Delhi Online

Select ‘North Delhi Municipal Corporation’ on mcdpropertytax.in. Check the box to proceed and feed Property ID to retrieve previous filings. Feed in the payment details and generate acknowledgment slip.

(With inputs from Surbhi Gupta)

 

Was this article useful?
  • 😃 (7)
  • 😐 (1)
  • 😔 (11)

Comments

comments