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# Property Tax In Delhi – Detailed Guide

## Property Tax in Delhi: An Overview

The Municipal Corporation of Delhi (MCD) imposes a tax on all properties within its jurisdiction, encompassing buildings and vacant land, among other types of real estate.

Hence, individuals who own any type of property, be it residential or commercial, whether self-owned or rented out, are obligated to pay MCD property tax.

## Calculation of MCD Property Tax

The Municipal Corporation of Delhi utilises the Unit Area System for calculating MCD property tax. Additionally, it applies a specific formula to determine the tax amount payable by property owners. Take a look at the formula below:

Property Tax = Annual value x Rate of tax

If you find this confusing, don’t worry; we will explain it in simpler terms for better understanding.

Annual Value – The Municipal Corporation of Delhi (MCD) determines the annual value of a property using the following formula:

Property Tax = Unit area value per square metre x Structure factor x Age factor x Covered area of the property x Use factor x Flat factor x Occupancy factor

Let us provide a clearer explanation of each factor mentioned above:

• Unit area value per square metre: This value varies based on the category of the property. Read on to learn more about property categories.
• Structure factor: It is determined by the construction type of the property.
• Age factor: This factor ranges from 0.5 to 1 and is influenced by the property’s age. Newer properties in Delhi attract higher taxes compared to older ones.
• Covered area of the property: This refers to the total floor area of the property.
• Use factor: MCD assigns a specific factor based on the property’s usage.
• Flat factor: This factor depends on the total covered area occupied by a flat.
• Occupancy factor: It is determined by the occupancy status of the property, whether it is rented out or self-occupied by the owner.

Rate of tax – The Municipal Corporation of Delhi (MCD) classifies the city of Delhi into eight categories, labelled as A-H, based on the property valuations in each locality.

Consequently, the calculation of MCD property tax involves distinct tax rates for each of these categories. The variation in tax rates, as of 2023, is outlined below:

## House Tax Rate

 Category Rate of Tax (in %) A 12 B 12 C 11 D 11 E 11 F 7 G 7 H 7

## MCD Commercial Property Tax

### Property Tax Rate

 Category Tax Rate for Commercial Property (in %) Tax Rate for Industrial Property (in %) A 20 15 B 20 15 C 20 12 D 20 12 E 20 12 F 20 10 G 20 10 H 20 10

### Payment of MCD Property Tax

MCD offers taxpayers the convenience and efficiency of paying taxes through both offline and online channels. Let’s now explore and provide information on both of these modes of tax payment:

### MCD Online Tax Payment

To make MCD property tax payment online, you can follow these steps:

• Visit the official website of MCD to initiate the online payment process for MCD house tax.
• Choose the respective Municipal Corporation among EDMC, NDMC, or SDMC to pay taxes.
• Click on the ‘Property tax’ option available under the ‘Online Services’ tab.
• Enter the property ID and select the desired tax year.
• If it’s your first time paying online, click on ‘First time online taxpayer’ and provide the necessary information. Then click on ‘Submit.’
• Next, you will see an ‘Action’ option against each property. Select it and click on the link ‘Use this property to pay tax.’
• Choose the payment method, either debit/credit card or net banking, to pay MCD property tax online.
• Finally, click on the ‘Generate Challan’ option to download the receipt for MCD property tax.
• For offline payment, you have the option to visit one of the 800 ITZ cash counters located throughout Delhi. Upon payment, you will receive an instant MCD property tax receipt that includes a property tax ID for future reference.

Furthermore, the complete property tax for properties in Delhi needs to be paid in a single instalment prior to the first quarter of the financial year. Hence, it is essential to settle your MCD property tax, whether through online or offline means, before the designated payment deadline, which is June 30th.

## Zones of MCD Property Tax

To streamline administration, the Municipal Corporation of Delhi (MCD) is divided into several zones for better management. These zones include:

• North Delhi Municipal Corporation (NMCD)
• South Delhi Municipal Corporation (SMCD)
• East Delhi Municipal Corporation (EMCD)
• West Delhi Municipal Corporation (WMCD)

## Localities in the Various Categories of Properties

As mentioned earlier, the Municipal Corporation of Delhi categorises the city into different categories, with each category encompassing multiple localities or colonies. The table provided below provides further details on this classification:

 Category of Property Main Colonies of Delhi Under the Category A Rajendra Place, Basant Lok DDA Complex, Sunder Nagar Golf Links, Friends Colony (East & West), Bhikaji Cama, Anand Niketan, New Friends Colony, Maharani Bagh, Panchshila Park, Kalindi Colony, Nehru Place, Shanti Niketan, Vasant Vihar, Lodi Road Industrial Area B Hauz Khas, Greater Kailash (I, II, III & IV), Andrews Ganj, Green Park, Anand Lok, Maurice Nagar, Hamdard Nagar, Gulmohar Park, Pamposh Enclave, Defence Colony, Nizamuddin East, Sarvodaya Enclave, Munirka Vihar, Nehru Enclave, Neeti Bagh, Sarvapriya Vihar, Safdarjang Enclave, Panchsheel Park C Vasant Kunj, Som Vihar, East Patel Nagar, Chittaranjan Park, East of Kailash, Kailash Hill, Civil Lines, Kalkaji, Alaknanda, Lajpat Nagar (I, II, III & IV), Jhandewalan Area, Malviya Nagar, Masjid Moth, Munirka, Punjabi Bagh, Panchsheel Extension, Nizamuddin West D Daryaganj, Dwarka, Hudson Line, Janakpuri, Gagan Vihar, Anand Vihar, Jasola Vihar, Jangpura A, Karol Bagh, Indraprastha Extension Kirti Nagar, Old Rajinder Nagar, Mayur Vihar, Rajouri Garden, New Rajinder Nagar, East End Apartments, Jangpura Extension E Moti Nagar, Gagan Vihar Extension, Madhuban Enclave, Khirki Extension, Mahavir Nagar, Pahar Ganj, Hauz Qazi, Jama Masjid, Pandav Nagar, Rohini, Sarai Rihilla, Chandni Chowk, Kashmere Gate, East End Enclave F Arjun Nagar, Ganesh Nagar, BR Ambedkar Colony, Jangpura B, Daya Basti, Hari Nagar, Nand Nagri, Majnu Ka Tila, Dilshad Colony Madhu Vihar, Mukherjee Park Extension, Uttam Nagar, Zakir Nagar Okhla, Anand Parbat, Dilshad Garden, Govindpuri G Dabri Extension, Amber Vihar, Hari Nagar Extension, Dakshinpuri, Dashrath Puri, Ambedkar Nagar Jahangirpuri, Tagore Garden, Vivek Vihar Phase I, Ambedkar Nagar East Delhi H Sultanpur Majra

## Exemptions for MCD Property Tax

Several individuals and entities in Delhi are exempted from paying property tax, including:

• Vacant buildings or lands used as places of worship, heritage sites, public burial grounds, or for charitable purposes.
• Property owned by individuals who were martyred while serving in paramilitary or police duty.
• Agricultural land or buildings (excluding dwelling houses).
• Sportspeople who have received awards in international games.
• Property owned by recipients of Gallantry Awards or war widows who utilise the entire property for their own residence.
• Property owned by a fully handicapped employee of South MCD.

## Rebate on MCD Property Tax

The MCD provides rebates on certain property tax payments. If you choose to pay your property tax in a single lump sum during the first quarter of the year, you will be entitled to a 15% rebate on the total tax amount.

It is advisable to review the terms and conditions regarding the eligible tax rebate. Here is an overview of the property tax rebate applicable to the following categories:

 Category Rebate on Delhi Property Tax DDA/CGHS flats 10% of the annual value, up to 100 sq metres of covered/built-up area. Group Housing Flats 20% up to 30th June of the financial year. Senior citizens 30% (only on one property and up to 200 sq metres). Women 30% (only on one property and up to 200 sq metres). Physically-challenged individuals 30% (only on one property and up to 200 sq metres). Ex-servicemen 30% (only on one property and up to 200 sq metres).

## List of Municipal Corporations in Delhi

• East Delhi Municipal Corporation
• North Delhi Municipal Corporation
• South Delhi Municipal Corporation

### East Delhi Municipal Corporation (EDMC)

Property owners in East Delhi Municipal Corporation are required to make their property tax payment by accessing the following link: https://mcdonline.nic.in/edmcportal/service. The East Delhi Municipal Corporation is divided into two zones, namely Shahdara North and Shahdara South. Each zone consists of six wards and five colonies.

### North Delhi Municipal Corporation (NDMC)

Property owners residing in North Delhi are required to fulfil their property tax obligations within the designated deadlines set by the North Delhi Municipal Corporation. If you reside in any of the six zones of North Delhi, namely City-SP Zone, Civil Lines, Karol Bagh, Narela, Rohini, and Keshav Puram, you can conveniently pay your property tax by visiting the website https://mcdonline.nic.in/ndmcportal/.

### South Delhi Municipal Corporation (SDMC)

The South Delhi Municipal Corporation is segmented into five zones: Central, South, West, and Najafgarh. Property owners in any of these zones are required to pay their taxes to the SDMC. Payment of property taxes can be made through both offline and online modes. Individuals can visit the official portal, https://mcdonline.nic.in/sdmcportal/, to conveniently pay their property taxes online.

## Property Tax Rates in Delhi 2023-24

 Property Category Residential Property Commercial Property Industrial Property Unit Area Value – Rate per sq. metre A 12% 20% 15% ₹ 630 B 12% 20% 15% ₹ 500 C 11% 20% 12% ₹ 400 D 11% 20% 12% ₹ 320 E 11% 20% 12% ₹ 270 F 7% 20% 10% ₹ 230 G 7% 20% 10% ₹ 200 H 7% 20% 10% ₹ 100

## MCD Property Tax Rates in Delhi in 2023 With Category List

 Category House Tax in Delhi Delhi Property Tax on Commercial Property A 12% 20% B 12% 20% C 11% 20% D 11% 20% E 11% 20% F 7% 20% G 7% 20% H 7% 20%

### Unit Area Value

 Category Unit Area Value (₹ per sq metre) Category A 630 Category B 500 Category C 400 Category D 320 Category E 270 Category F 230 Category G 200 Category H 100

### Age Factor

 Year of construction Age factor Before 1960 0.5 1960-69 0.6 1970-79 0.7 1980-89 0.8 1990-99 0.9 2000 onwards 1

### Use Factor

 Property type Use factor Residential property 1 Non-residential public purpose 1 Non-residential public utility 2 Industry, entertainment and clubs 3 Restaurants, hotels up to 2-star rating 4 3-star and above hotels, towers, hoarding 10

### Structure Factor

 Construction type Structure factor Pucca (RCC Building) 1.0 Semi-pucca 1.0 Kuchha 0.5

### Occupancy Factor

 Occupancy type Occupancy factor Self-occupied 1.0 Rented out 2.0 Vacant plot 0.6

## How to Check MCD Property Tax Bill Online?

To check your unpaid or current pending property tax bill, you can conveniently do so online through the MCD website at www.mcdpropertytax.in. Follow these steps:

• Step 1: Visit the MCDpropertytax portal and choose your respective division. For instance, if you are paying property tax to the North Delhi Municipal Corporation (NDMC), select the NDMC link.
• Step 2: Select the ‘Property Tax’ option and then click on ‘View Old PTR’.
• Step 3: Provide your Property ID and select the financial year for which you wish to view the MCD tax dues.
• Step 4: The bill will be generated online, allowing you to proceed with the payment.

## Property Tax Payment Through MCD Online App

In May 2021, the South Delhi Municipal Corporation (SDMC) launched a mobile application to facilitate convenient online payment of MCD property tax, especially during the COVID-19 pandemic. This app is designed to serve all three municipal corporations: NDMC, SDMC, and EDMC.

• Click on ‘Online Services’ to access the page with quick links for various online services.
• Navigate to the ‘Mobile App’ tab.
• You can refer to the user manual provided to understand the installation and usage process of the mobile app.

## Property Tax Contact Details

NDMC and SDMC can be contacted on: Headquarters Dr SPM Civic Centre, Minto Road New Delhi – 100 002
EDMC can be contacted on Headquarters East Delhi Municipal Corporation 419, Udyog Sadan Patparganj Industrial Area New Delhi – 110 092

## Latest News for MCD Property Tax Payers

### MCD Generates Over ₹ 1,650 Cr Revenue in FY 2022-23

During the fiscal year 2022-23, the Municipal Corporation of Delhi (MCD) witnessed a significant increase in revenue, surpassing ₹ 1,650 crore. This marked a growth of more than 22 percent compared to the previous fiscal year. According to officials from the Lieutenant Governor’s House, the revenue rose from ₹ 7,249.25 crore in 2021-22 to ₹ 8,900 crore in 2022-23. Notably, a substantial portion of the increased revenue, approximately ₹ 654.51 crore, was attributed to the SAMRIDDHI Scheme introduced by Lieutenant Governor Vinai Kumar Saxena in October 2022. This scheme resulted in the inclusion of over 1.32 lakh properties and taxpayers within the tax net.

The SAMRIDDHI Scheme, which had a four-month window until March 31, 2023, offered amnesty to property owners utilising the ‘one plus five’ and ‘one plus six’ components for residential and non-residential properties, respectively. Under this scheme, property taxpayers could self-assess and pay the principal amount of current and pending dues for five to six years, thereby receiving a waiver on past outstanding dues.

### MCD Provides Property Tax Relief to Traders

Starting from April 1, 2023, the Municipal Corporation of Delhi (MCD) has implemented the recommendations put forth by the fifth Municipal Valuation Committee (MVC 5). This move aims to alleviate the burden of property tax for various entities such as traders in rented non-residential spaces, private schools, banquet halls, and guesthouses. According to officials, there may be a reduction in property tax for banquet halls, private schools, and shops located in rented premises, as well as for structures constructed within the past 12 years. The unit area values (UAV) assigned to properties, which are determined based on the city’s classification of different residential colonies, will remain unchanged.

The committee has made specific adjustments to certain factors. The use factor for banquet halls has been reduced from 6 to 4, for schools from 3 to 2, for cell towers from 10 to 4, and for company transit residences from 4 to 2. In terms of the age factor, property taxes for new houses built between 2010 and 2020 will only see a marginal increase of 0.1% to 0.2%. The occupancy factor for residential properties will remain unaltered, while significant relief has been granted for non-residential rented properties. Additionally, the structural factor has been simplified.

### MCD Passes Schedule of Taxes for FY 2023

On February 15, 2023, the Municipal Corporation of Delhi (MCD) approved the schedule of taxes in the civic Budget for the fiscal year 2023-24, under the supervision of special officer Ashwani Kumar. As per an official statement, there will be no changes in the taxes, rates, and cesses to be levied in the upcoming year. The civic body has projected an expenditure of ₹ 16,023 crore with an income of ₹ 15,523 crore. It has been clarified that there will be no increase in property tax rates.

Currently, certain individuals are eligible for tax exemptions under clause (vi) of sub-section 1 of section 115 of the DMC Act, 1957. This includes war widows, gallantry award winners in the armed forces, police, and paramilitary forces, as well as civilians who have received the highest order of bravery awards from the government, including Annual Bravery Awards presented by the president. In a recent decision, it has been determined that if such properties are jointly owned, the spouse of the aforementioned individuals will also be exempted from property tax in relation to such jointly owned property.

## FAQs

### How to calculate property tax in Delhi?

The Municipal Corporation of Delhi (MCD) employs the 'Unit Area System' to calculate property taxes throughout the city. The calculation formula is as follows: Property tax = Annual value x Rate of tax.

### How to pay property tax online in Delhi?

Paying your property tax online through the MCD's website using internet banking, debit or credit card is the most convenient method. When you visit the MCD's website, you'll find three links corresponding to different municipal corporations based on your area. Simply select the appropriate link, enter your property ID, and complete the payment process.

### What are the rebates offered by MCD on property tax?

If you choose to pay your property tax as a single lump sum during the first quarter of the year, you will qualify for a 15% rebate on the total tax amount. Additionally, senior citizens, women, and individuals with physical disabilities are eligible for a 30% rebate, but this is applicable only on one property.

### How to pay EDMC property tax?

Choose the option 'East Delhi Municipal Corporation' on the website mcdpropertytax.in. Proceed by checking the box and enter your Property ID to access previous filings. Enter the payment details and generate an acknowledgment slip.

### How to pay SDMC property tax?

Choose the option 'South Delhi Municipal Corporation' on the website mcdpropertytax.in. Proceed by checking the box and enter your Property ID to retrieve previous filings. The SDMC has assigned a Unique Property Identification Code (UPIC) based on the 2014-15 Property Tax Returns, which you can use for the payment. Enter the payment details and generate an acknowledgment slip.

### How to pay NDMC property tax?

Choose the option 'North Delhi Municipal Corporation' on the website mcdpropertytax.in. Proceed by checking the box and enter your Property ID to retrieve previous filings. Enter the payment details and generate an acknowledgment slip.

### How can I find my property ID in Delhi?

The Property ID is a distinctive identification number assigned to properties in the region by the municipal authority. You can locate this ID in your previous tax receipts or challans.