Whether you have a huge penthouse or a small parcel of land, property tax is a recurring expense that you will have to take into consideration. There are a lot of factors that affect the property tax you will be required to pay.
We wish calculating the tax you owe on your property to be as simple as multiplying the rate of tax with your property but it isn’t.
In Delhi, there are multiple zones and depending on which zone your property is situated in, you will have to property tax at a different rate. You will also have to take into consideration other factors like the age of your property or the type of construction.
The Municipal Corporation of Delhi is the civic body that collects property tax payments in Delhi. They are currently bifurcated into three branches to make the governance of Delhi properties simpler.
1. North Delhi Municipal Corporation a.k.a NDMC
2. East Delhi Municipal Corporation a.k.a EDMC
3. South Delhi Municipal Corporation a.k.a SDMC
If you own a property in Delhi, this article is the perfect place for you to find out exactly how much property tax to pay, and where to pay it.
Which Zone Property Tax Rate Is Applicable To Your Property?
As mentioned above, Delhi is divided into 8 zones ranging from Zone A to Zone H. The property tax rates for each of these zones are set separately.
Thus, identifying which zone your property falls in is crucial for us to move forward and calculate the tax you owe on your Delhi property.
Below is a list of all the localities included in each zone in Delhi.
Basant Lok DDA Complex
Bhikaji Cama Place
Friends Colony East
Friends Colony West
Lodi Road Industrial Area
New Friends Colony
Greater Kailash I
Greater Kailash II
Greater Kailash III
Greater Kailash IV
East of Kailash
East Patel Nagar
Lajpat Nagar I
Lajpat Nagar II
Lajpat Nagar III
Lajpat Nagar IV
East End Apartments
New Rajinder Nagar
Old Rajinder Nagar
East End Enclave
Gagan Vihar Extension
BR Ambedkar Colony
Majnu Ka Tila
Mukherjee Park Extension
Ambedkar Nagar Jahangirpuri
Ambedkar Nagar East Delhi
Hari Nagar Extension
Vivek Vihar Phase I
Property Tax Rate In Delhi 2021-22
Now that you know which zone your property falls under, we can look at what property tax rate you’re supposed to use to calculate the property tax you need to pay to the MCD. There are three categories that properties can fall under, residential, commercial and industrial. The property tax rates would vary according to each category.
Residential Property Tax
Commercial Property Tax
Industrial Property Tax
Calculating Property Tax In Delhi
Calculating the value of your property tax is a little complicated. However, it’s not something we can’t walk you through. First and foremost, you will need a few pieces of information:
1. Tax Rate:
This is the information provided above.
2. Unit Area Value:
This is the value assigned to the built-up area of your property on a per square feet basis.
Unit area value in Rs.
3. Unit Area of Property:
This is the Total Built-up area of your property. This information can be found on your property documents.
4. Age of the Property:
The value between 0.5-1 assigned to your property n the basis of the time it has existed.
Time of Construction
5. Property Use:
This is the use of your property, residential or commercial.
Non-Residential (Public Utility)
Industry, Entertainment, Clubs
Upto 2 Star Restaurants and Hotels
3 Star and above Restaurant and Hotels
6. Type of Construction:
Type of construction is a value substituted to your property depending on the material used for its construction for example reinforced concrete constructions (RCC) are taxed at a higher rate.
Type of Construction
7. Occupancy Type:
This refers to whether your property is being rented out or occupied by the owner.
Type of Occupancy
The formula used to calculate the property tax value is as follows:
Property Tax Owed = Annual value (Unit area value x Unit area of property x Age Value x Use Value x Construction Value x Occupancy Value) x Property Tax Rate As Per Zone
How To Pay Property Tax In Delhi: Online
This simple procedure will help you pay your property tax online in Delhi. Just follow the following steps:
Step 1: Start by selecting the civic segment of MCD that governs the zone your property falls under by going to this website.
Step 2: You will then be lead to the portal where you can click ‘pay property tax’ after you agree to the terms and conditions.
Step 3: Here you will be required to select the year you want to pay the property tax for and enter your property ID.
Step 4: First time tax payers can create a new property ID on this page by selecting the relevant option and following the steps that are mentioned on the page.
Step 5: Once you do the above steps you will be redirected to a page containing your property details. Here you will also be able to calculate the tax you owe on your Delhi property.
Step 6: All that is remaining is to pay the owed tax through net banking or debit and credit cards. Go ahead and click ‘generate challan’ and save the receipt for future use.
How To Pay Property Tax In Delhi: Offline
Delhi has over 800 ITZ counters spread across the city. To pay your property tax offline, you will be required to visit one of these centers and pay the tax directly. Once you’ve paid your property tax, you will receive a receipt detailing your property details. The property ID on this receipt is required to pay property taxes related to your property for as long as you own it. Generating new property IDs is met with punitive actions by the Municipal Corporation of Delhi and thus should not be taken lightly.
Exemptions And Concessions On Property Tax In Delhi
The MCD has set the following rules for exemption and concessions o property tax to be paid in the city. These exemptions and concessions are applicable on all eight property zones in Delhi.
Exemptions On Property Tax In Delhi
1. Any property, be it plots or buildings, used for charitable purposes, places of worship, public burials, or categorized as heritage properties are exempt from property tax.
2. Property owned by disabled South MCD personnel who is still on duty.
3. Land and building endowed to corporations.
4. Properties of those martyred while on paramilitary or police duty.
5. Sportsmen with awards held in international games.
6. Residential properties owned and occupied by veterans of the army or widows of army personnel.
7. Agricultural land or buildings
Concessions On Property Tax In Delhi
1. Yearly tax when paid in full within the first quarter of the year will attract 15% rebate.
2. 10% discount on annual tax is given to DDA or CGHS flats under 100 sq. m. of area.
3. 30% rebate on property tax is available to women, physically challenged, and senior citizens on any one property under their ownership.
4. 30% rebate is available to ex-servicemen.
5. 20% rebate is given to group housing residential units on payment of property tax by 30th June.
6. The following rebates are applicable on properties only up to 200 sq. m., excluding DDA and CGHS.
7. The property must be occupied by the owner in order to receive the rebate.
8. The concessions are only available to the owners that fit the criteria. In case of joint ownership rebate is given on the share of property tax owed by the eligible party.
The Delhi Municipal Corporation (DMC) announces the deadline to pay due property tax every year. In case you fail to pay your property tax within the set deadline, you will be charged 1% penalty on your property tax every month you default.