ALL ABOUT PROPERTY TAX IN DELHI (for areas under the jurisdiction of MCD)

 

MUNICIPAL CORPORATION OF DELHI – MCD

The Municipal Corporation of Delhi, (MCD), which has now been bifurcated into three different corporations as South Delhi Municipal Corporation (SDMC), East Delhi Municipal Corporation (EDMC), North Delhi Municipal Corporation (NDMC), and these are primarily responsible to revises the Property Tax Rates in Delhi every year. These rates are based on the location, age and usage type of the property. Property owners can pay tax on land and property to South Delhi Municipal Corporation (SDMC), East Delhi Municipal Corporation (EDMC), North Delhi Municipal Corporation (NDMC),   according to the zonal area which is further divided into different wards and colonies.

Property Tax is the major source of revenue for any Municipal Corporation. This tax is paid by the property owners on all lands and buildings, including on the vacant land. In Delhi, the property tax is maintained by South Delhi Municipal Corporation (SDMC), East Delhi Municipal Corporation (EDMC), North Delhi Municipal Corporation (NDMC). The rates on the property tax are reviewed every year by the council of MCD. As per the current method of Property Tax Calculation, the Property Tax in Delhi is collected by Unit Area System, which takes into consideration various factors such as built up area, age, location and type of the property.

SDMC - SOUTH DELHI MUNICIPAL CORPORATION (PROPERTY TAX)

South Delhi Municipal Corporation (SDMC) provides both offline and online mode of for filing Property Tax Returns and Payments. The offline mode of making payments was recently introduced by SDMC when citizens complained about online methods. Property owners of South Delhi can pay Property Tax according to their zonal areas, which is divided into five zones: Central, South, West, Najafgarh and Head Qtrs.

NDMC - NORTH DELHI MUNICIPAL CORPORATION (PROPERTY TAX)

North Delhi Municipal Corporation (NDMC) has categorised the North Delhi into seven zones which are Karol Bagh, Civil Lines, Narela, Rohini, Keshavpuram Zone, City S P Zone, Head Qrs. These zones are further divided into wards and colonies. Property owners of North Delhi can file and pay the Property Tax through online and offline modes. North Delhi Municipal Corporation (NDMC) recently introduced a new user interface for paying property tax online. Now users can easily file return of the property tax for previous as well as current financial year.

Please Note: Areas of Lutyens Delhi, like Golf Links, Jor Bagh, Connaught Place, and some parts of Central Delhi, comes under the jurisdiction of New Delhi Municipal Corporation, popularly known as NDMC, so North Delhi Municipal Corporation (NDMC), and New Delhi Municipal Corporation (NDMC) looks identical, but are two different corporations.

 LIST OF COLONIES AS BIFURCATED BY THE MCD

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

 PROPERTY TAX RATES (Percentage Rate), IN DELHI as in FY-2020-21

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

 

 

 

HOW TO CALCULATE ANNUAL VALUE FOR PAYMENT OF PROPERTY TAX

Annual Value (AV) is calculated taking into consideration of seven factors as illustrated below:

Annual Value (AV) = (Unit Area Rate/Value) X (Unit Area of Property) X (Age Factor) X (Use Factor) X (Structure Factor) X (Occupancy Factor).

UNIT AREA RATE / VALUE (this is assigned value for Per Sq. Mtrs., built up area of the property.

Category	Unit Area Rate / Value (Rs. Per Square Meter)
A	630
B	500
C	400
D	320
E	270
F	230
G	200
H	100

 

UNIT AREA OF PROPERTY: This is the built-up are of the property in Sq. Mtrs., and property tax is payable on built-up area and not on the basis of carpet area. The built-up area is as certified by the developer, or architect, or by assessing officer of the MCD.

AGE FACTOR OF THE PROPERTY: This factor takes into account the age of the building and provides for higher tax on newer properties and lesser/lower tax on older properties in line with the market value, and on the basis of age of the building, this factor ranges from 0.5 to 1.0.

Year of Construction	Age Factor
Before 1960	0.5
1960 to 1969	0.6
1970 to 1979	0.7
1980 to 1989	0.8
1990 to 1999	0.9
2000 onwards	1.0

 

USE FACTOR: This factor takes into account the usage of the property and provides for lower tax on residential use property and higher tax on non-residential usage.

Use of Property	Use Factor
Residential Purpose	1
Non Residential Public Purpose	1
Non Residential Public Utility	2
Industry, Entertainment and Clubs	3
Restaurants, Hotels up to 2 Star Rating	4
3 Star and above Hotels, Towers & Hoardings	10

STRUCTURE FACTOR: This factor provides for higher tax rates on RCC constructions and lower tax rates on low value constructions.

Type of Construction	Structure Factor
Pucca (RCC Frame Structure)	1.0
Semi Pucca	1.0
Kuchha (Low value construction)	0.5

 

OCCUPANCY FACTOR: This factor provides for higher property tax on rented properties and lower property tax on self-occupied properties.

Occupancy Type	Occupancy Factor
Self Occupied Properties	1.0
Rented Properties	2.0
Vacant Plot	0.6

 

Here is brief illustration of Calculation of Property Tax

Annual Value (AV) = (Unit Area Rate/Value) X (Unit Area of Property) X (Age Factor) X (Use Factor) X (Structure Factor) X (Occupancy Factor).

Let us assume there is a self-occupied property of 100 Sq. Mtrs., in a colony of Category-B, and constructed in year 1985.

Ø  Unit Area Value in Category-B      =        Rs. 500/- Per Sq. Mtr.

Ø  Unit Area                                    =        100 Sq. Mtrs.

Ø  Age Factor                                  =        0.6

Ø  Use Factor                                  =        1

Ø  Structure Factor                          =        1.0

Ø  Occupancy Factor                        =        1.0

Now the Annual Value (AV) = 500 X 100 X 0.6 X 1.0 X 1.0 X 1.0 =  Rs. 30,000/-

Now the Property Tax to paid = 30,000 X 12% (as the percentage rate of tax in Cat-B is 12%), here comes the figure of Rs. 3,600/- which is the amount of property tax to be paid.

But property owners are allowed to avail some rebates on property tax, which are as under:

Ø  Female or a Senior Citizen or a Disabled Person, a rebate of 30% would be applicable, and accordingly the tax payable would be Rs. 2520/- instead of Rs. 3600/-

Ø  Further if the entire property tax for the year is paid in a single instalment, during the first quarter of the year then you will get a rebate of 15% on the total tax amount.

Ø  No rebate on payments in quarterly instalments.

Ø  In case of late payments interest of 1% per month will be charged.

Ø  Rebate of around 10% on Annual Value (AV) to DDA / CGHS flats upto 100 Sq. Mtrs.

Ø  Property Tax in Delhi, can be made by both online and offline modes (official website of MCD www.mcdonline.nic.in)