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A guide to paying property tax in Delhi written by Vinita Menon, published in Housing.com. January 9, 2020

Property tax is a recurring charge that home owners have to pay every year. However, the tax amount varies from one location to another. This is a guide to paying property tax in Delhi

 

Update on January 6, 2020:

 

East Delhi property owners get Unique Property Identification Code cards

 

The East Delhi Municipal Corporation, on January 3, 2020, began distribution of Unique Property Identification Code (UPIC) cards to property owners, a facility meant for widening the property tax net, officials said. At an event held at the EDMC headquarters at Patparganj, the civic authority also launched a property tax management portal.

 

A UPIC card contains details of property owners. The first three digits of the card will denote ward number, the next four digits will denote colony number and the remaining digits will specify the respective properties. &ldquoUnder this project, grievance redressal will be done through a centralised call centre,&rdquo a senior official said. The EDMC has 795 colonies in 64 wards and a survey for issuing UPIC cards has been completed in 32 wards. By March 2020, it is hoped that all properties in east Delhi will be included in the property tax net, he said.

 

(With inputs from PTI)

 

Update on June 20, 2019:

 

EDMC offers exemption from enhanced property tax till July 31, 2019

 

The cash-strapped East Delhi Municipal Corporation (EDMC) will offer exemption from enhanced property tax till July 31, 2019, on account of implementation of the 3rd Municipal Valuation Committee (MVC) report, officials said, on June 19, 2019. The announcement was made by the leader of the house in East Delhi Municipal Corporation, Nirmal Jain.

 

As per the provisions, commercial and non-residential properties of 139.35 sq metres or more that fall under Category A, are granted exemption equivalent to pre-existing MVC-I, the EDMC said in a statement. Jain also said that along with the exemption, an extension of rebate period on prompt payment, has also been offered till July-end. The rebate is also offered on all industrial properties of Category B, as per the recommendations of the MVC-I.

 

(With inputs from PTI)

 

Owners of residential properties in Delhi, are liable to pay property tax to the Municipal Corporation of Delhi (MCD) every year. Based on the area/colony in which your property is located, you would need to pay your property tax, either to the South Delhi Municipal Corporation (SDMC), the North Delhi Municipal Corporation (NDMC) or the East Delhi Municipal Corporation (EDMC). Delhi is also divided into eight categories, from A to H, based on the values of properties in the colonies belonging to each category. The rate of property tax and the unit area value (assigned value per sq metre of the property) differ for all the eight categories.

 

How to calculate property tax for a residential property in Delhi

 

The MCD uses the &lsquoUnit Area System&rsquo for property tax calculation all over the city. The formula used for calculation is as follows:

 

Property tax = Annual value x Rate of tax

 

Where

 

Annual value = Unit area value per sq metre x Unit area of property x Age factor x Use factor x Structure factor x Occupancy factor

 

Rate of tax: Tax rates for properties in categories A to H are published by the MCD every year.

 

Unit area value: This is an assigned value per sq metre of the built-up area of a property. The unit area value per sq metre differs for categories A to H.

 

Unit area of property: The built-up area (not the carpet area) in sq metres is taken into consideration for computation.

 

Age factor: Newer properties are taxed higher than older ones, based on the age of the property. The value of this factor ranges from 0.5 to 1.0.

 

Use factor: Residential properties are taxed lower than non-residential ones. The value for residential properties is &lsquo1&rsquo.

 

Structure factor: RCC constructions are taxed higher than low value constructions.

 

Occupancy factor: Properties that are rented out are taxed higher than self-occupied ones.

 

 

Rebates on property tax

 

The MCD offers rebates on some property tax payments:

 

  • If your property tax is paid as a lump sum in a single instalment during the first quarter of the year, you will be eligible to receive a rebate of 15 per cent, on your total tax amount.

 

  • A rebate amounting to 10 per cent of the annual value is given to DDA/CGHS flats, up to 100 sq metres.

 

  • A rebate of 30 per cent is given to senior citizens, women and the physically challenged, only on one property.

 

Paying your property tax

 

The most convenient way to pay your property tax, is to pay it online on the MCD&rsquos website, using internet banking, debit or credit card. In the last year, the MCD has invested significantly in making its websites more efficient and technologically advanced, in a bid to encourage more online property tax payments.

 

Once you go to the MCD&rsquos website, you will need to choose from the following three links, based on your area&rsquos municipal corporation:

 

South Delhi Municipal Corporation (SDMC)

 

North Delhi Municipal Corporation (NDMC)

 

East Delhi Municipal Corporation (EDMC)

 

The colonies that fall under the above three corporations, are listed on each of the south, north and east municipal corporations&rsquo websites.

 

In case of delayed payment of your property tax, the MCD will levy a one per cent fine every month on the unpaid amount. After you make your payment on the MCD&rsquos website, ensure that the system updates your record and no outstanding amounts are shown against your account. If there are any errors, have them corrected immediately.