Property tax in Delhi is paid annually by property owners in the Delhi region to the Municipal Corporation of Delhi (MCD). MCD Property tax is levied on all tangible real estate properties including commercial and residential buildings/flats and also on vacant land (whether commercial or residential). Under existing rules, property tax is paid by the owner to the Urban Local Body (ULB) of the area, which in this case is MCD. Property tax rates in Delhi vary based on various factors and they are described below.
MCD calculates the property tax in Delhi based on the Unit Area System. The Unit Area System of property tax calculation takes into account multiple factors like built-up area, age and location of the property as well as the type of property (commercial/residential). Thus the applicable rate of property tax in Delhi varies based on multiple factors.
As per the MCD unit area system, properties in Delhi are divided into eight categories based on their valuations. The rate of property tax and the unit area value of the property differ for all the eight categories. Apart from that, the MCD area is also divided into three zones which are North Delhi MCD, East Delhi MCD, and South Delhi MCD which impact the property tax rate based on location. Lastly, while the computation method remains the same as per the Unit Area System, the tax levy itself may vary for different types of properties like residential, commercial or industrial.
MCD Property Tax Computation Method
The formula used for the property tax calculation by the MCD is as follows:
Property Tax = Annual Value * Rate of Tax
Annual Value = Unit area value per sq meter * Unit area of property * Age factor * Use factor * Structure factor * Occupancy factor
Rate of Tax = Tax rates of the A-H categories of the properties is published by the MCD every year. You can find the applicable tax rate as per the category of your property by clicking here. For FY 2019-20, this rate is 6% to 20% depending on the type of property being taxed.
- Here, the unit area is the built-up area of the property.
- Age factor depends on the age of the property. It ranges from 0.5 to 1. New properties are taxed higher than the old properties.
- Use factor is assigned by the MCD based on the usage of the property. If a property is used for commercial purposes, it will be taxed higher than residential properties. It varies from 1 to 10.
- Structure factor depends on the type of construction. For example, RCC constructions are taxed higher than semi-pucca or Kuchha construction.
- Occupancy factor depends on whether the property is rented out or self-occupied one. Properties that are rented out are taxed higher than the self-occupied ones.
Property Tax Calculations for Vacant Land
Vacant land in Delhi whether commercial or residential, is liable to be taxed at the applicable MCD property tax rate. The following is the vacant land property tax in Delhi calculation formula:
Property Tax = Annual Value * Unit Area
Annual Value (Vacant Land) = Unit area value per sq meter * area of vacant land * use factor * occupancy factor * 0.3
It is to be noted that Delhi Government appoints Municipal Valuation Committee every third year to review and determine categorization, the unit rate of each colony and other multiplication factors.
The MCD categorization of major colonies of Delhi for property tax calculations is as follows :
|Property Category||Main Colonies|
|A||Anand Niketan, Bhikaji Cama place, Friends Colony, Hudco Place, I.P Estate (Press area), Kalindi Colony, Lodhi Road Institutional Area, Maharani Bagh, Mayfair Garden, Nehru Place, New Friends Colony, Panchshila Park, Pragati Maidan, Press Area, Pushpa Bhawan, Shanti Niketan, Siri Fort Institutional Area, Sunder Nagar, Vasant Vihar, West End|
|B||Anand Lok, Andrews Ganj, Balaji Estate, Chirag Enclave, Defence Colony, Greater Kailash I II III IV, Green Park, Green Park Extn, Gulmohar Park, Hamdard Nagar, Hauz Khas, IIT Area, INA Colony, JNU Campus Area, Kailash Colony, Kilokri, Lodhi Colony, Nauroji Nagar, Navjivan Vihar, Neeti Bagh, Nehru Enclave, Nizamuddin East, Panchsheel Enclave, Qutab Inst Area, Safdarjang Enclave, Sarvapriya Vihar, Sarvodaya Enclave, South Ext, South Moti Bagh, Sukhdev Vihar, Vasant Enclave,|
|C||Alaknanda, Anupam Apartment, Aruna Asif Ali Road, Bhawani Kunj, Central Market Lajpat Nagar, Chittaranjan Park, East of Kailash, Escort Area, Firoz Shah Kotla Stadium, Kailash Hills, Kailash Kunj, Lajpat Nagar I II III IV, Malviya Nagar, Munrika Vihar, Nangal Dewat, Panchsheel Vihar, Punjabi Bagh West, Som Vihar, Vasant Kunj|
|D||Ajanta Park, Anand Vihar, Amar Colony, Anupam Gardens, Bali Nagar, Chander Nagar, Daryaganj, Dwarka, Gagan Vihar, Hudson Line, Janakpuri, Jangpura A, Jangpura Extension, Jasola Vihar, Kalkaji, Karol Bagh, Kirti Nagar, Mayur Vihar, Mohan Coop Industroa; Estate, New Rajinder Nagar, Nanakpura, Okhla Industrial Estate, Old Rajinder Nagar, Pushp Vihar,Raja Garden, Rajouri Garden|
|E||Cariappa Marg, Chandni Chowk, IAAI Colony, Indian Air Lines Colony, Khirki Ex, Madhuban Enclave, Mahavir Nagar, Pahar Ganj, Pandav Naga, Pant Nagar, Press Colony, Rohini, Shahpur Jat, Tilak Nagar,|
|F||Anand Parbat, Arjun Nagar, Daya Basti, Dilshad Garden, Freedom Fighter Enclave, Ganesh Nagar, Govindpuri, Hari Nagar, Madhu Vihar, Majnu Ka Tila, Uttam Nagar, Okhla,|
|G||Ambedkar Nagar Jahangirpuri, Amber Vihar, Badarpur, Bijwasan, Dabri Extension, Dakshinpuri, Dashrathpuri, Hari Nagar Extension, Vivek Vihar Phase I, Tagore Garden|
|H||Maidan Garhi, Mandi-Chhatarpur, Sultanpur Majra,|
The property tax rates based on property category and property type are as follows:
|Property Category||Rate for Residential Property||Rate for Commercial Property||Rate for Industrial Property|
Rebate on Property Tax
- If property tax is paid in lump sum in the first quarter of the applicable financial year, you will be eligible for a rebate of 15% on the total tax amount.
- A rebate of 10% on the annual value is given to DDA/CGHS flats up to 100 sq. meters.
- A rebate of 30% is given to senior citizens, women, ex-servicemen and physically challenged but only on one property, upto 200 sq meters.
- A rebate of 20% can be availed by the owners of group housing flats but only if the tax is paid on or before 30th June of the financial year.
- In case of delayed payments, interest @ 1% per month will be chargeable.
Note: The rebate provisions are applicable only when the occupancy factor is ‘Residential’ and the use factor is Self-Occupied’.
Paying Property Tax in Delhi
In Delhi, property tax payment can currently be made either online using Internet banking/debit card or offline at specific designated counters.
Process for Online Payment of Delhi Property Tax
Online payment is the most convenient way of paying the property tax. You can pay your property tax online on the MCD’s website using internet banking, credit card or debit card.
- Log on to the MCD’s Property Tax Website.
- Choose your area’s municipal corporation. You can search here to find whether the property falls under the North, South or East Delhi MCD’s jurisdiction.
- Check the box right for accepting the terms and conditions. Then Click on ‘Click Here to File Property Tax
- If you have paid the property tax earlier, then you can use the Property ID allotted to your property for making the payments directly. Your property ID can be found in previous property tax payment receipts. You can also search the Property ID online. It will require colony name, property owner’s name and the type of the property.
Search Your Property ID :
- In case you are paying the property tax for the first time, select ‘First Time Online Tax Payers’ and then click on ‘Click Here to File Return if Property Id has been allotted earlier’.
- You will be directed to a page where you need to fill in the ownership details of the property. Enter the property details as required and then it will automatically compute your property tax. Click on ‘Submit’. You can pay using your debit/credit card or via net banking.
- Don’t forget to click on ‘Generate Challan’. You can save the challan for your records.
Offline Payment of Property Tax in Delhi
If you are not comfortable using the online mode of property tax payment, then you can deposit it offline at any ITZ cash counter in Delhi. You can find the list of these counters by clicking here. It will also generate an instant receipt of the payment mentioning your property id.