MCD Property Tax | Meaning, Rates, Penalty, Rewards, Rebates and Due Dates

MCD Property Tax: They use the taxes collected by our government for the functioning of the country and the system. MCD Property tax is one such tax where the residents of Delhi pay property tax online or offline to the Municipal Corporation of Delhi.

MCD online facilitates those who find it hectic to visit the offices. Online mode has made it possible to pay taxes anytime from anywhere. Uploading the documents online gets all the work done; MCD online birth certificate, property papers and other certificates needed have been listed below.

In this writing, we have discussed about the process of submitting the tax – both online and offline, the concessions, and everything else you need to know about the MCD.

Property Tax MCD

What is MCD Property Tax?

Municipal Corporation of Delhi Municipal Corporation of Delhi, abbreviated as MCD, is in charge of collecting property taxes from the residents. The taxes are collected per annum, and the MCD is going to set a deadline. Payments can also be made via the MCD website by following some easy steps.

If one owns a residential property in the capital city, they will need to pay tax for their property to the Municipal Corporation of the capital city. All the pieces of property, even the abandoned ones which are under the purview of the body, are going to be charged along with the MCD property tax. Three new bodies replaced the municipal corporation of Delhi in 2012.

The list of Municipal Corporations in Delhi are:

  • East Delhi Municipal Corporation or EDMC
  • South Delhi Municipal Corporation or SDMC
  • North Delhi Municipal Corporation or NDMC

Property tax rates in Delhi 2021-22

Category Property Tax Rate on Residential Property Tax Rate on Commercial Property Tax Rate on Industrial Property
A 12% 20% 15%
B 12% 20% 15%
C 11% 20% 15%
D 11% 20% 15%
E 11% 20% 15%
F 7% 20% 10%
G 7% 20% 10%
H 7% 20% 10%

Method of Calculating Property tax in Delhi

The Delhi Municipal Corporation uses the ‘Unit Area System’ to calculate property tax across the city. The formula used for the analysis of MCD Property Tax has been given below:

Property Tax = Tax Rate multiplied by Annual Value

Annual Value = Unit area value each square meter x use factor x structure factor x age factor x unit property area x occupancy factor.

Rate of Tax = MCD declares the rate of tax for A-H divisions each year. One can find the applicable tax rate on the MCD Property Tax official website.

Unit area value This is the per square meter value attributed to the built-up area of the properties.
Unite area of the property The built-up area is not in the carpet area each square meter.
Age factor Newer properties have been levied higher tax as compared to the old ones. The age factor is based on the property’s age, where the worth of this factor ranges between a value of 0.5 to 1.
Use factor Residential properties have been levied lower tax in comparison to non-residential properties. The factor value assigned is 1.
Structure factor RCC constructions have been levied higher tax in comparison to low-value buildings.
Occupancy factor Properties that have been rented out are imposed higher tax in comparison to the self-occupied properties.

Steps for paying MCD Property Tax online

Stated below are the steps one needs to follow for paying the MCD Property Tax online:

Step 1: Visit the official MCD website at the link given below.

http://www.mcdpropertytax.in/ and choose whether the property tax has to be paid to the North Delhi MCD, South Delhi MCD, or the East Delhi MCD.

Step 2: On choosing one of the options, one is going to be directed to a different page. There, one will have to tick the box for consenting to the terms and conditions and select ‘click here to file property tax’.

Step 3: Choose any one of the choices given there – Property id for property tax paid in years 2019-20 or other year property id. Insert the property id.

Step 4: If one is filing the tax for the first time, then select the option ‘First, time online taxpayer’. Select on the option ‘click here in case property id hasn’t been allotted before.

One is going to be directed to a different page where they will have to enter the needed details and declare the complete area of the property. They have followed by clicking on the check box ‘I have read, and I accept the declaration stated above’. Click on the ‘Submit’ option.

The property id is going to be sent to the individual’s registered mobile number’. One can use the property id for filling their property tax in the future.

Step 5: As talked about above, one can choose either one of the options – Property id for property tax paid in the years 2014-15 or other year property id and insert the property id in the given box.

Step 6: One is going to be directed to a different page containing the details of their property ownership.

Step 7: Fill in the details of the property and calculate automatically the payable tax. Click on the ‘Submit’ option.

Step 8: One can pay the tax either through a credit or debit card or net banking.

Step 9: When the tax has been paid, click on the option ‘generate challan’. The challan is going to be displayed. One can download it for approaching reference.

Offline Method of Paying Delhi house Tax

If one doesn’t wish to pay their property tax online, they can choose to pay it at any one of the 800 strategically placed ITZ cash counters all over Delhi. One will instantly be issued with a receipt after their offline payment that is going to contain a property tax ID that they need to use for all their future tax payments.

Please also keep a note that if one doesn’t remember or do not use their previously allotted ID, the system is going to allow a new one to them, and this is going to create an entirely new host of problems for one during their future tax payments and may even invite punitive action.

Exemption for the MCD Property Tax

Stated below are the individual or bodies who have been exempted from the property tax payment:

  • Vacant land or buildings are used as a place of worship, public burial, heritage land, or for charitable purposes by anybody or individual.
  • Agricultural land or building.
  • Land or building vested incorporation.
  • Property owned by ex-servicemen or widows of an individual martyred in war. The property must only be used for self-residence, and no portion of it should be let out.
  • Properties are martyred for police duty or paramilitary.
  • Properties are owned by any South MCD employee who is disabled but entirely on duty.
  • Any sportsman or sportswoman who has won awards for some international games.

Rebates imposed on Property tax in the capital city

  • If one pays their property tax as a lump sum during the first quarter of the year, one is going to be eligible for receiving a 15% discount on the total payable tax amount.
  • A 10% discount of the yearly value is given to the DDA/CGHS flats but only up to the ones which are 100 square meters.
  • A 30% discount is given to women, physically challenged individuals and senior citizens but for only one property.
  • A value of 30% on the property tax is provided to the veterans.
  • A 20% discount to group housing flats up to 30th June of the financial year.

Conditions for availing of the rebate

  • Rebate is provided for up to a maximum of 200 square metres of properties except for DDA/CGHS flats, whose limit is up to 100 square meters.
  • The occupancy factor must be residential.
  • Use factor must be self-occupied.
  • In the case of joint owners, a concession is going to be offered on the basis of the property share of the owners who qualify for benefit on property tax.

Penalty for Delay Payment of MCD Tax

  • In case one delay the property tax payment, a fine of 1% is going to be imposed every month by the MCD on the payable tax amount.
  • The deadline for the tax payment is announced by Delhi Municipal Corporation or DMC.

List of Delhi Cities Divided into Categories

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

Due date, penalty and other rewards

  • The total property tax paid in one lump sum before the first quarter or 30th of June is provided with a rebate of 15% on the total tax.
  • Any delay in property tax payment will attract penal interest @ 1% for every month of delay.

Concession

  • A 30% concession is provided to Senior citizens, women and physically challenged individuals.
  • A rebate of 30% is offered to Ex-servicemen.
  • A rebate of 20% is offered to group housing flats of up to 30th June of the financial year.
  • A rebate of 10% is offered to DDA/CGHS residential up to 100 sq mts of covered/build-up area.

Frequently Asked Questions (FAQs)

Question 1.
Can I pay my MCD property tax offline?

Answer:
Yes, one can pay the MCD property tax offline by going to any of the 800 ITZ cash counters located all over the capital. It is recommended that one must pay the tax either by demand draft or by cheque. Once the tax payment has been made, one will receive a receipt that will contain the property tax id and is going to be used for future reference.

Question 2.
Is property tax and municipal tax the same?

Answer:
No, property tax and municipal tax are two different taxes that one will have to pay. However, the property tax is a kind of municipal tax charged by the capital city’s municipal corporation.

Question 3.
I can’t remember my property tax ID. What should I do?

Answer:
It is highly recommended that one not forget their property tax ID as a new one will not be provided. If one forgets their ID, get in touch with the MCD official who is going to help one with the process. One is also going to be penalised for a new property tax ID allotment.

Question 4.
I have some questions related to the payment of property tax. What should I do?

Answer:
If one has any questions related to their property tax payment, they can lodge a complaint on the MCD property tax official website. Under the ‘grievance’ section, select the option ‘Lodge grievance reg tax receipt’. One is going to be directed to a different page where they will have to enter their property id, the name of the taxpayer, contact number, and the mode of payment via which the tax was paid. Click on the ‘Submit’ option. An executive from the MCD property tax office is going to get in contact with the person and help them with their query.

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