A property tax is an annual tax which is deposited to the civic body that has jurisdiction in that particular area. Whether public, private, residential or commercial, property tax is levied on all the buildings. It is the responsibility of every citizen to pay property tax timely.
Procedure to calculate and pay property tax in Delhi
A property owner who lives in the capital city is liable to pay property tax to the Municipal Corporation of Delhi (MCD) every year. Based on the locality and area, one has to pay their property tax either to the South Delhi Municipal Corporation (SDMC), the North Delhi Municipal Corporation (NDMC) or the East Delhi Municipal Corporation (EDMC).
How to calculate property tax in Delhi?
Based on the value of properties in particular colonies, Delhi is divided into eight categories from A to H. However, the rate of the property tax and the unit area value which is assigned value per sq. meter of the property differ for all the eight categories.
This unit area system is used by MCD to calculate property tax. The formula which is involved in this calculation is:
Property tax = Annual value X Rate of tax
However, there is another mathematical formula through which Annual value is calculated:
Annual value = Unit area value per sq meter x Unit area of property x Age factor x Use factor x Structure factor x Occupancy factor
Now let’s understand the basics of this formula:
Rate of tax: This is the tax rates of all the eight categories which MCD publish every year.
Unit area value: It is the assigned value per sq. meter of the property which differs for all the eight categories from A to H.
Unit area of property: It is the built-up area of the property in sq. mts. don’t mix it up with carpet area.
Age factor: Based on the age of the property, taxes on new properties are higher as compared to older ones. This factor ranges from 0.5 to 1.0.
Use factor: Residential properties are taxed lower than commercial ones. The value for residential properties is ‘1′.
Structure factor: If a building is made with better construction material then, they are taxed higher as compared to the lower value one.
Occupancy factor: If you have rented your property then you have to pay a higher property tax than self-occupied ones.
The MCD also offers rebates on some property tax payments. These include:
- If you are paying property tax in a single installment during the first quarter of the year then you will receive a rebate of 15 percent on the total amount.
- If you own a DDA/CGHS flat, then you will get a rebate of 10% of the annual value up to 100 sq meters.
- 30% rebate is given to senior citizens, women and the physically challenged on the property.
Modes of Payment of Property tax
The best and the most convenient method to pay your property tax is through online web portal of MCD. The payment can be done through, credit card, debit card as well as internet banking. All you have to do is to go on the MCD website and click on the link of any three of the municipal corporation based on your area. Once you will select the particular municipal corporation, you will get an online property tax calculator wherein you just have to make important entries and the property tax will automatically appear on the screen. Then click on the submit button. Once your submission is done, take a print of the payment receipt and keep it with you for future documentation. Ensure there must be no errors; if there is any then correct them instantaneously.
You can also pay your property tax manually either at citizen felicitation centers or at a nearest MCD office of your area.