PropertyTaxation

What is Property Tax in Delhi?

Property tax collected from the public acts as the chief source of income for any state. It is used to maintain various resources such as roads, parks, sewage systems, and other essential infrastructures of the city or town. The property tax is paid on an annual or semi-annual basis

Property tax or ad valorem tax is the annual amount deposited by the land or the property owner to the local government or the municipal corporation.

The tax is imposed by the governing authority of the respective jurisdiction wherein the property is located. The urban and municipal authorities use this tax amount to provide basic amenities for the people residing in the respective area.  This procedure is no different in the capital city of India, Delhi. 

The Municipal Corporation of Delhi (MCD) levies property taxes and has made it really simple to make payments through their online portal. While Delhi is divided into 8 zones starting from A to H, the MHD has been trifurcated into the North Delhi Municipal Corporation (NDMC), East Delhi Municipal Corporation (EDMC), and South Delhi Municipal Corporation (SDMC) to ensure a smooth and easy transaction. This would also ease the burden of the excessive administrative load falling on a single department.  

Significance and Classification of Property

Property tax in Delhi is charged by the Delhi Municipal Corporation (DMC) on all land and property that comes within its purview. Every year, the DMC announces a deadline within which all taxes must be paid.

The word ‘property’ in this context refers to all tangible real estate under the ownership of an individual and includes houses, office buildings, and premises rented to third parties.

The Online Property Tax as a concept has been around for centuries and is acknowledged across the globe, with records of farmers and peasants paying tax on their properties even in the Middle Ages.

Property is classified into four categories, and the government estimates the tax based on certain criteria as elucidated below:

  1. Land–in its most basic form, without any construction or improvement
  2. Improvements made to land–this includes immovable man made creations like buildings and warehouses
  3. Personal property–this includes movable man-made objects such as cranes, cars, or buses
  4. Intangible property.

Online Payment of Property Tax

An online portal was introduced to facilitate the commoners of Delhi to pay property tax conveniently. On paying the tax, a unique property identification code will be issued for the respective property in Delhi. You need to have all the Property Documents Ready With you, So that you can make easy payments.

The portal helps in monitoring and updating the property tax arrears and penalties, in addition to calculating the late fees and interest amounts.

Details about property tax policies, laws, property tax rates, unit area values, taxable property types, exemption, rebate criteria, etc. are available in the portal.  The property tax can also be paid offline in person after which a receipt that contains the property tax ID is issued. This ID will be used for all future tax payments.

Property Tax Rates in Delhi for 2022-2023

The entire city of Delhi is categorised into 8 categories, and the tax rates vary according to the area.

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

 

The tax rates in turn vary across the regions as tabulated below:

Category Rate for Commercial Property (in %) Rate for Industrial Property  (in %) Property Value (Rs/square meter)
A 20 15 630
B 20 15 500
C 20 12 400
D 20 12 320
E 20 12 270
F 20 10 230
G 20 10 200
H 20 10 100

 

Procedure to Pay Property Tax in Delhi

 

Step1: Log in to the official portal of Municipal Corporation of Delhi (MCD)

Step 2: Read the PTR instructions attentively and thereafter proceed to create new Login ID and password

Step 3: After creating the login ID , get into the account with the same. Select ‘Online Filing of Property Tax Returns’ under ‘Property Tax’ head

Step 4: After reading the terms and conditions, select ‘Click Here to File Property Tax’

Step 5: Enter the property ID, or select ‘Click Here to File Your Return if Property ID has not been Allotted Earlier’

Step 6: Fill in the required details pertaining to the property such as Ownership details, Property details, Contact details, Building details, and the stipulated tax calculations

Step 7: Enter details pertaining to existing arrears, if any

Step 8: Verify the details and correct if there should be any error and click ‘Accept’ to submit the form

Step 9: The property tax bill can now be downloaded.

The team of Vakilsearch can help you with any queries on Property Taxation Online: https://dolr.gov.in/en/. The main objective of the federation is to promote export by organizing exporters, importers, manufacturers/exporters/importers, industry associations and other stakeholders on a common platform.

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