Table of Contents
- How to calculate property tax in Gurugram?
- Property tax rate on residential property in Gurugram and Faridabad
- Property tax rate on independent homes built on plots
- Property tax rate on flats in housing societies in Gurugram
- Property tax rate on vacant plots in Gurugram
- Property tax on PGs in Gurugram
- Property tax rate on shops in Gurugram
- Property owners who enjoy full rebate on property tax
- How to pay property tax online in Gurugram?
- How can I pay property tax bill in offline in Gurgaon?
- What is the penalty if you fail to pay property tax on time?
The Coronavirus pandemic has affected business across India and civic bodies are no exception. It would be appropriate to cite the example of the Municipal Corporation of Gurugram, here. Against the overall projection of Rs 1,100 crores of revenue generation through property tax collection in FY21, the MCG has been able to collect only Rs 21 crores between April and June 2020. Earlier, the Haryana government had announced a one-time rebate of 25%, on dues for the years 2010-11 to 2016-17 that are paid by August 31, 2020. The rebate was a support measure that was launched, keeping in mind the adverse impact of the COVID-19 pandemic.
For the uninitiated, all owners are liable to pay a certain amount as property tax every year to the municipal bodies of their areas. In the Millennium City, the Municipal Corporation of Gurugram (MCG) collects property tax from citizens. In this article, we would check out the procedure to calculate house tax bill in the city and how users can make that payment online.
How to calculate property tax in Gurugram?
With a view to simplify the property tax assessment and payment process, the MCG in 2013 came up with a new system that allows citizens to self-assess their tax liability, based on the rates applicable on their specific house type. In other words, the MCG follows a system for tax calculation that takes into account the size and use of the property.
As Gurugram and Faridabad have been categorised as Type A1 cities (all other cities in Haryana fall under the A2 category) for property tax purposes, the rates are similar for similar types of property in the two cities.
Property tax rate on residential property in Gurugram and Faridabad
For tax purposes, residential properties are divided into independent houses, flats or apartments and vacant land plots in Gurugram and the charges vary, depending on the type of residential property you own.
Property tax rate on independent homes built on plots
|House area||Property tax per year|
|Up to 300 square yard (sq yard)||Re 1 per sq yard|
|From 301 to 500 sq yard||Rs 4 per sq yard|
|From 501 sq yard to 1,000 sq yard||Rs 6 per sq yard|
|From 1,001 sq yard to 2 acre||Rs 7 per sq yard|
|Above 2 acre||Rs 10 per sq yard|
Do note here that these rates are applicable on properties with only the ground floor. If the owner has built multiple floors, he enjoys 40% rebate on the first floor and 50% rebate on the second floor while paying taxes. No rebate, however, is available if each floor is owned individually. Also, no tax applies on basements that are used for parking only.
Property tax rate on flats in housing societies in Gurugram
|House carpet area||Property tax per year|
|Up to 2,000 sq ft||Re 1 per sq ft|
|From 2,001 to 5,000 sq ft||Rs 1.20 per sq ft|
|Above 5,000 sq ft||Rs 1.50 per sq ft|
Property tax rate on vacant plots in Gurugram
|Vacant plot area||Property tax per year|
|Up to 100 sq yard||Nil|
|From 101 to 500 sq yard||Rs 0.50 per sq yard|
|Above 500 sq yard||Re 1 per sq yard|
Commercial, industrial and institutional plots
|Up to 500 sq yard||Nil|
|101 sq yard and above||Rs 5 per sq yard|
|501 sq yard and above||Rs 2 per sq yard|
Property tax on PGs in Gurugram
Before 2018, paying guest (PG) accommodations in Gurugram were treated as residential property and taxed accordingly. However, after the MGC realised it incurred a loss of Rs 20 crores on account of such categorisation that has been in force since 2008 when the municipal body was established, it changed categories of PGs from residential to ‘lodging house’ for the purpose of levying property tax. Owners have to pay tax at Rs 1,000 per bed per year as tax on PG accommodations under the Haryana Municipal Corporation Act.
Property tax rate on shops in Gurugram
Under income tax laws, shops are treated as house property and not commercial property. The rates mentioned below are applicable only on shops located on the ground floor.
|Shop area||Property tax per year|
|Up to 500 sq yard||Rs 24 per sq yard|
|From 51 to 100 sq yard||Rs 36 per sq yard|
|From 101 sq yard to 500 sq yard||Rs 48 per sq yard|
|From 501 sq yard to 1,000 sq yard||Rs 60 per sq yard|
|Above 1,000 sq yard||Rs 15 as areas would be treated as commercial|
A property tax rebate of 40% for the first floor and 50% rebate on the second floor would apply, if the entire building is owned by one person. If the owner has partially leased space in this establishment, he will have to pay 1.25 times of the above mentioned rates for the leased space.
Property owners who enjoy full rebate on property tax
The MCG offers complete or partial exemption on property tax to certain individuals.
- Flats of up to 2,000 sq ft: If you own a flat in a housing society that has a carpet area of less than 2,000 sq ft, you don’t have to pay any property tax.
- Self-occupied properties of freedom fighters, war widows, defence personnel and family: Full exemption on property tax is offered by the MCG on self-occupied properties of freedom fighters, war widows, former defence servicemen and their families.
- Lal Dora properties: Starting April 1, 2020, the MCG also offers full property tax rebate on Lal Dora properties.
- Early birds:While the MGC offers 10% rebate on property tax to early birds i.e. people who pay their property tax before July 31 of that assessment year, it also offers a one-time 30% rebate to property owners, who clear their property tax dues within 45 days of notification of the rates.
How to pay property tax online in Gurugram?
You can pay your property tax in Gurgugram by personally visiting the MCG office or do it online. Follow this three step process to pay your property tax online in Gurugram.
Step 1: Log on to the MCG web site, https://www.mcg.gov.in/. On the left side, you would find the tab, Property Tax. Click on it to reach another page which you show you multiple options. By clicking on ‘Property Tax’ tab on this page, you would initiate the payment process. To download your property bill or register you complaint with regard to the bill, click on the ‘Property Tax Bill’ option. Click here to search, assess or pay your property tax in Gurgugram.
Step 2: On the Page that appears, you will have to key in all details of your property, including Property ID, Owner Name, Father/Husband Name, Mobile Number, Email ID, Zone, Locality, Ward and Address. After correctly filling each detail with utmost care, click on the ‘Search’ button.
Step 3: The page that now appears would show you your property tax. In case you don’t see any miscalculation in the amount, proceed to pay the tax using your debit/credit card details, net-banking credentials or UPI wallet details. Once you key in all details, you have paid your property tax.
How can I pay property tax bill in offline in Gurgaon?
One can pay property tax offline in Gurgaon by visiting Property Tax Collection Centres, also known as Citizen Facilitation Centres, or any branch of Oriental bank of Commerce in the city.
What is the penalty if you fail to pay property tax on time?
If a property owner fails to pay his tax within the specified timeline, an interest of 1.5% is charged per month on the outstanding payment liability. In case a property owner willfully under-reports his property tax, the authority imposes a fine equal to the tax evasion. The 1.5% per month interest would also be charged in case of under reporting of tax liability, if applicable. According to the rules, however, the penalty amount should not exceed the initial liability.
How do I find my property ID number to pay property tax online in Gurgaon?
You property ID number is mentioned on the tax receipts you received in the past. If you are a new tax payer, you can find out the ID by keying in all the other details about your property on the MCG website, https://www.mcg.gov.in/.
Can I pay property tax in Gurgaon using UPI?
Yes, you can use UPI wallet apart from net-banking and credit/debit cards to pay property tax in Gurgaon.
How can I download property tax bill for Gurgaon?
Click here to download your property tax bill in Gurgaon.
Do I have to pay property tax on my basement and parking lots in Gurgaon?
Under the new system, basement and parking lots in residential establishments enjoy full tax rebate.
Do I have to pay property tax in Gurgaon if the house size is 1,000 square foot?
For self-occupied properties of up to 2,000 sqft carpet area, the owner does not have to pay property tax in Gurgaon.