Just like other states, you need to pay the property tax in Delhi as well if you own a property. The last date of the payment of tax is approaching and everyone is busy doing their homework so as to make the payment of tax and avoid any additional properties. We would not discuss about the benefits of the property tax but just to mention, the tax helps in providing you with the facilities and maintaining the facilities as well. In addition to this, it is also a mandate to pay the taxes for the property you own.
The property tax is applicable for all types of properties and this includes the residential as well as commercial properties. In Delhi, the local body which is responsible for collecting the tax is MCD (Municipal Corporation of Delhi). These days, information technology is helping people in a lot of ways and this is also true for the property tax. MCD uses information technology to ensure that people are aware of the fact that they need to pay the property tax.
The calculation of the property tax is based on various computation methods and a lot of factors are involved in here as well. It should be noted that all the municipal corporation chooses a type of system to calculate the tax. For example, BMC in Mumbai uses Capital Value System whereas the MCD uses Unit Area System. In the upcoming sections, you will be able to look at the computation of property tax and the process to pay the property tax online in Delhi along with the details of due date, rebates and other such details.
Computation of Property Tax in Delhi
As mentioned earlier, the Unit Area system is used in Delhi to calculate the property tax and under the system, the formulas used are
Property Tax = Rate of Tax * Annual Value
Annual Value of the property is the product of Unit Area Value in Sq. Meter, age factor, covered area of the property, use factor, age factor, occupancy factor, structure factor and flat factor.
It should be noted that the annual value of the property for vacant land will differ and for the vacant land, the annual value is the product of Unit Area Value in Sq. Meter, the area of vacant land, use factor, occupancy factor & 0.3
This is how the property tax is calculated for vacant land and for the occupied property.
Penalties, Concession and Rebates
There are some rebates on paying the property tax on time however, if you delay the process then you will be penalized as well. Check out the items listed below for more information.
- If you make the payment of the property tax before the first quarter then you are eligible for a total rebate of 15%. This is a good amount to save and you must surely target to achieve this type of saving for yourself.
- Next thing to be noted is that if you delay the payment from the due date then you are bound to make the payment of the interest amount on the due amount. The interest amount is 1% per month in this case.
We are now going to take about the concessions and exemptions on property tax so you can check out the details below.
- As per the information available, the exemption is available for the land that is being occupied or used for public burial, cremation ground, worship, heritage land and building, agricultural land and land used for charitable purpose.
- In addition to the points listed above, the war widow or the gallantry award winner are exempted from property tax is the property is used for self-occupancy. The same is the case for property that is owned by the people who martyred on paramilitary or police duty.
- People who won awards in international games or the property that is owned by the fully handicapped employee of MCD South are exempted from the payment of tax as well.
- Apart from the details listed above, there is a 30% concession given to the senior citizen, women, ex-serve men and physically challenged people.
- There is also a 20% rebate applicable for the flats that fall under group housing and this is applicable only until Q1 of the year.
- Lastly, the 10% rebate is given to the people who reside in DDA or CGHS plats which has abuildup area of less than 100 sq. meter.
In all the cases listed above, you must ensure that the property is used for residential purpose and it is self-occupied. If there are two owners of the property and if one of them is eligible for the rebate or concession then only the property share owned by the eligible owner will get the rebate or the concession.
Steps to Pay MCD Property Tax Delhi Online
Follow the steps listed below to make the payment of property tax.
- Start by visiting mcdpropertytax.in and once you are on the website, select your MCD Zone from the available options.
- Now click agree button for terms and conditions and proceed by entering the property ID for the tax paid in earlier years. You can find it on the receipts of the old tax documents. Once you enter the details, click on Submit button.
- Now, verify the ownership details of the property and compute the tax by entering the required details. Once this is done, submit the form and the tax amount will be displayed.
- From here, you can make the payment of the property tax using the online methods such as Net Banking, Credit Card and Debit Card.
- Print or save the receipt once the payment is made and keep it safely for the records.
This was all about the payment of MCD Property tax and other details pertaining to the property tax. For any other information, you can even call the helpline of the Delhi Municipal Corporation and they will share all the required details with you.