Owning a house will bring you a sense of security but not to forget, along with it comes the burden of paying property tax each year. So, you need to know where and how you are liable to pay the same beforehand.

If you’re planning to buy a property in Delhi then you have landed up on the right place. In this article, I will be giving you a complete overview on Property Tax in Delhi 


Let’s get started with-

Summary

Introduction to Property Tax in Delhi 

Property Tax Rates 2021-2022

Delhi Property Tax Calculation

Payment of Property Tax in Delhi – Online 

Payment of Property Tax in Delhi – Offline

Due date and Penalty- Property Tax in Delhi

 Exemptions - Property Tax in Delhi

Concessions- Property Tax in Delhi 

Conditions for availing concession

Frequently Asked Questions

Introduction to Property Tax in Delhi 

 The Municipal Corporation of Delhi (MCD) is responsible for collecting property taxes from residents of Delhi every year. However, the property tax rate in the city varies based on the location, age, usage, and type of the property as Delhi is further classified into 8 different categories Each category from A to H has a different rate of tax for residential, commercial and industrial property.

3 municipal corporations, namely, North Delhi Municipal Corporation (NDMC), South Delhi Municipal Corporation (SDMC), and East Delhi Municipal Corporation (EDMC) are responsible for collecting property taxes from the categorized areas

Colonies in each of the categories

Category

Colonies

A


Anand Niketan, Basant Lok DDA Complex, Bhikaji Cama Place, Friends Colony, Friends Colony East, Friends Colony West, Golf Links, Kalindi Colony, Lodi Road Industrial Area, Maharani Bagh, Nehru Place, New Friends Colony, Panchshila Park, Rajendra Place, Shanti Niketan, Sunder Nagar, Vasant Vihar


B

Anand Lok, Andrews Ganj, Defence Colony, Greater Kailash I, Greater Kailash II, Greater Kailash III, Greater Kailash IV, Green Park, Gulmohar Park, Hamdard Nagar, Hauz Khas, Maurice Nagar, Munirka Vihar, Neeti Bagh, Nehru Enclave, Nizamuddin East, Pamposh Enclave, Panchsheel Park, Safdarjang Enclave, Sarvapriya Vihar, Sarvodaya Enclave

C

Alaknanda, Chittaranjan Park, Civil Lines, East of Kailash, East Patel Nagar, Jhandewalan Area, Kailash Hill, Kalkaji, Lajpat Nagar I, Lajpat Nagar II, Lajpat Nagar III, Lajpat Nagar 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 Line, Indraprastha Extension, Janakpuri, Jangpura A, Jangpura Extension, Jasola Vihar, Karol Bagh, Kirti Nagar, Mayur Vihar, New Rajinder Nagar, Old Rajinder Nagar, Rajouri Garden

E

Chandni Chowk, East End Enclave, Gagan Vihar Extension, Hauz Qazi, Jama Masjid, Kashmere Gate, Khirki Extension, Madhuban Enclave, Mahavir Nagar, Moti Nagar, Pahar Ganj, Pandav Nagar, Rohini, Sarai Rihilla


F

Anand Parbat, Arjun Nagar, Daya Basti, Dilshad Colony, Dishad Garden, BR Ambedkar Colony, Ganesh Nagar, Govindpuri, Hari Nagar, Jangpura B, Madhu Vihar, Majnu Ka Tila, Mukheree Park Extension, Nand Nagri, Uttam Nagar, Zakir Nagar Okhla

G

Ambedkar Nagar Jahangirpuri, Ambedkar Nagar East Delhi, Amber Vihar, Dabri Extension, Dakshinpuri, Dashrath Puri, Hari Nagar Extension, Vivek Vihar Phase I, Tagore Garden

H

Sultanpur Majra

Property Tax Rates 2021-2022

Category

Property Tax on 

Residential Property

Property Tax on 

Commercial Property


Property Tax on 

Industrial Property

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%


Delhi Property Tax Calculation

 The MCD uses the ‘Unit Area System' to calculate property taxes in the city. The formula used for calculation is as follows:

 Property Tax = Annual Value x Rate of Tax

 Here, Annual Value = Unit area value per Sq. Mt x Unit area of property x Age factor x Use factor x Structure factor x Occupancy factor

Unit area value: It is a value assigned to a property's built-up area per sq. meter.

Category

Unit Area Value (Rs per sq. mt)

A

630

B

500

C

400

D

320

E

270

F

230

G

200

H

100

Unit Area of Property: It is the built-up area (not the carpet area) in sq meters which is taken into consideration for computation 

 Age Factor: Based on the age of the property, newer properties are taxed more than older ones. This factor's value varies from 0.5 to 1.0.

Year of Construction

Age Factor

Before 1960

0.5

1960-69

0.6

1970-79

0.7

1980- 89

0.8

1990-99

0.9

2000 onwards

1

Use Factor: Non-residential properties are taxed higher than residential properties. Residential properties have a value of ‘1'.

Property Type

Use Factor

Residential Property

1

Non Residential Public Purpose

1

Non-Residential Public Utility 

2

Industry, Entertainment and Clubs

3

Restaurants, Hotels up to 2-star ratings

4

3 star and above hotels, towers, hoardings

10

Structure Factor: RCC constructions are taxed higher than low-value constructions.

Construction Type

Structure Factor

Pucca (RCC Building)

1.0

Semi- pucca

1.0

Kuchha

0.5

Occupancy Factor: MCD charges a higher property tax on rented properties and a lower tax on self-occupied properties.

Occupancy Type

Occupancy Factor

Self- occupied

1.0

Rented 

2.0

Vacant Plot

0.6


Payment of Property Tax in Delhi – Online 

 Step 1: Visit the official website of MCD and choose whether the property tax needs to be paid to - South Delhi MCD, North Delhi MCD, or the East Delhi MCD. 

 Step 2: Upon choosing, you will be directed to a separate page. tick the box for agreeing to the terms and conditions and click on ‘click here to file property tax’.

 Step 3: Enter your Property ID in the box provided. You can easily find Property ID on older Property Tax Challans/receipts. 

 Step 4: If you are filing the property tax for the first time, then- 

  •  Click on the option ‘First-time online taxpayer’. 
  •  Click on ‘click here if property id has not been allotted earlier. You will be directed to a separate page where you will have to enter the necessary details and declare the total area of the property you have followed by ticking on the box ‘I have read and I accept the declaration made above’. 
  •  Click on ‘Submit’. The property id will be sent to your registered mobile number’. You can use the property id to file your property tax in the future. 

 Step 5: You will be directed to a separate page containing the details of your property ownership. 

 Step 6: Enter the details of your property and based on the information you have input and an automatic calculation will tell you how much you have to pay as tax. Click on ‘Submit’.

 Step 7: You can pay the tax either by credit/debit card or by net banking.

 Step 8: Once the tax has been paid, click on ‘generate challan’ and you can see the challan displayed on your screen. You can download it for future reference.

Payment of Property Tax in Delhi – Offline

  •  You can pay your property tax using offline modes at the respective ITZ (In-the Zone) cash counters of your Municipal Corporation. 
  •  There are about 800 ITZ cash counters all across Delhi. You can immediately get the receipt of your payment as you make the payment. 

 You can also make payments through cash, Cheque, or DD at Axis bank, HDFC Bank, and Citizen Service Bureau Centers. 

If you are making a payment through a Cheque or DD, it should be drawn in favor of “Commissioner, North Delhi Municipal Corporation”, if you are paying taxes to NDMC.

Due date and Penalty- Property Tax in Delhi

  •  If you pay the entire property tax in one lump sum before the first quarter or 30th June, you can enjoy a rebate of 15% on the total tax
  •  In case of delay in the payment of property tax, you will be fined with interest @ 1% for every month of delay 

 Exemptions - Property Tax in Delhi

  • Building or vacant land exclusively occupied and used for public worship, public burial or cremation grounds, heritage lands or buildings or occupied and used by any society or body for charitable purpose
  • Agricultural land and building except dwelling houses
  • Land or building vested in the corporation (The property tax would be levied on the council/government in the case of land and buildings situated on government property.) 
  • Property martyred on police/paramilitary duty 
  •  Property owned by an ex-servicemen or widow of a person martyred in war. The property should only be used as a self-residence and no portion of it is let out. 
  • Properties martyred on paramilitary or police duty.
  •  Property owned by a South MCD employee who is handicapped but fully on duty. Any sportsperson who has won awards for any international games.

Concessions- Property Tax in Delhi 

  •  A concession of 30% is given to Senior citizens, women, ex-servicemen, and physically challenged but only on one property 
  •  Rebate of 20% to group housing flats up to 30th June of the financial year 
  •  Rebate of 10% to DDA/CGHS residential up to 100 sq. MT of covered/build-up area

Conditions for availing concession

  • Rebate is applied for a maximum of 200 sq. meters of total build-up/covered area except in the case of DDA/CGHS residential which has a different limit 
  •  Occupancy factor/use factor should be residential 
  • Use factor should be self-occupied 
  •  In the case of joint owners, the owners who fall into the rebate group will receive a rebate on their property share. 

 Note: The exemptions and concessions may vary depending on whether the property belongs to North, South, or East MCD.

Frequently Asked Questions

1. What is the last date for property tax in Delhi? 

 The due date to submit the entire property tax in a lump sum is June 30 of each year. Making the payment within the period attracts a 15% rebate on the entire tax amount. 

 2. Is municipal tax and property tax the same?

 No, municipal tax and property tax are two different taxes that you will pay. However, property tax is a type of municipal tax charged by the municipal corporation.

3. What can I do if I don’t remember my property tax ID? 

In case you forget your ID, get in touch with an MCD official who will help you with the process. You will also be penalized for the allotment of a new property tax ID.