All about MCD Property Tax in Delhi

In India, property tax is a major source of revenue for urban local bodies. Municipalities within a state administer these taxes, which are then used for various amenities.

Likewise, property owners in Delhi are subject to pay this tax on an annual basis. To simplify this process for taxpayers, we present this comprehensive guide on property tax in Delhi.

Without further ado, let’s begin!

Property Tax in Delhi: An Overview

The Municipal Corporation of Delhi, or MCD, levies a tax on all properties under its jurisdiction. This tax is charged on all sorts of real estate, including buildings and vacant land.

Therefore, owners of any property, whether residential, commercial, self-owned or rented out, are liable to pay MCD property tax.

Calculation of MCD Property Tax

For MCD property tax calculation, the Municipal Corporation of Delhi adopts the Unit Area System.

Further, it employs a formula to calculate the amount of tax payable by a real estate owner.

Here is the formula, take a look:

Property Tax = Annual value x Rate of tax

Confused? Don’t worry; we’ll break this down for you:

1) Annual Value - MCD calculates a property's annual value by way of this formula:

Property Tax = Unit area value per square metre x Structure factor x Age factor x The covered area of property x Use factor x Flat factor x Occupancy factor

Allow us to offer you a clearer picture of this formula by delving into each of the factors mentioned above:

Unit area value per square metre: It depends on a property’s category. Keep reading to learn more about this.
Structure factor: It is based on the construction of a property.
Age factor: It falls on a scale of 0.5 to 1. Newer properties in Delhi attract higher taxes than older ones.
The covered area of property: This indicates the total floor area of a property.
Use factor: MCD assigns this factor based on the usage of a property.
Flat factor: It depends on the total covered area by a flat.
Occupancy factor: It is based on the occupancy of a property - whether it is rented out or self-occupied by its owner.

2. Rate of tax - MCD segregates the city of Delhi into eight categories from A-H. These categories are marked as per the valuation of properties in each locality.

The rate of MCD property tax calculation, therefore, differs with each of these categories. This variance in tax rates as of 2021-22 is highlighted below:

House tax rate

Category	Rate of tax (in %)
A	12
B	12
C	11
D	11
E	11
F	7
G	7
H	7

MCD Commercial Property Tax

Property tax rate

Category	The tax rate for commercial property (in %)	The tax rate for industrial property (in %)
A	20	15
B	20	15
C	20	12
D	20	12
E	20	12
F	20	10
G	20	10
H	20	10

Payment of MCD property tax

mcd property tax calculation — (Source: pexels)

MCD facilitates the payment of taxes via offline and online routes, making the process extremely convenient and efficient for taxpayers. We will now shed light on both of these modes of tax payment:

MCD online tax payment

MCD property tax online payment can be made by following these steps:

Visit the official website of MCD to initiate MCD house tax online payment.
Now choose between EDMC, NDMC, or SDMC to pay taxes to your respective Municipal Corporation.
Now, simply login to the portal or register with the website by signing up.
Once logged in, you can proceed to pay property tax. At this point, the website shows three options, ‘Apply for new UPIC,’ ‘Search Property on UPIC,’ and ‘Register new property for tax payment.’
Here, if you already have a Unique Property Identification Number (UPIC), you can check the property details by choosing the ‘Search Property on UPIC’ option. However, if you do not have a UPIC, you must register the property through the ‘Apply for new UPIC’ and ‘Register new property for tax payment’ options.
As you submit the UPIC on this web portal, you will find property details such as property ID, colony, ward, etc. Then, you can find the property for which taxes are to be paid.
Now, you will notice an ‘Action’ option against each property. Select this option and then on the link ‘Use this property to pay tax.’
You can pay MCD property tax online either via a debit/credit card or net banking.
Finally, click on the ‘Generate Challan’ option to download the MCD property tax receipt.

Offline payment process

Alternatively, you can pay your tax at one of the 800 ITZ cash counters that are strategically placed all across Delhi. An instant MCD property tax receipt is issued on the completion of the payment. Furthermore, this receipt contains a property tax ID that comes in handy during future tax payments.

Additionally, the entire property tax in Delhi is to be paid in one lump sum before the first quarter of a given financial year. Therefore, you must pay your due MCD property tax online or offline before the last date of payment, i.e., June 30.

Zones of MCD property tax

For ease of administration, the Municipal Corporation of Delhi (MCD) is divided into several zones, namely the following:

North Delhi Municipal Corporation (NMCD)
South Delhi Municipal Corporation (SMCD)
East Delhi Municipal Corporation (EMCD)
West Delhi Municipal Corporation (WMCD)

Localities in the various categories of properties

As aforementioned, the Municipal Corporation of Delhi divides the city into various categories, each of which has several localities or colonies under it. The table below elaborates on this:

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

Exemptions for MCD property tax

Numerous individuals and bodies enjoy exemption from property tax in Delhi, such as:

Vacant buildings or lands serving as a place of worship, heritage site, public burial, or used for charitable purposes.
Property belonging to individuals martyred on paramilitary/police duty
Agricultural land/building (dwelling houses are not included)
A sportsperson who has received awards in international games
Property owned by a winner of the Gallantry Award or a war widow who uses the entire property for self-residence
Property owned by an employee of South MCD who is fully handicapped

Rebate on MCD property tax

MCD offers a rebate on property tax in the following cases:

A 30% rebate to senior citizens, ex-servicemen, physically challenged individuals, and women on one property and up to 200 square metres.
15% rebate if tax is paid in a lump sum by a taxpayer during the 1st quarter of the applicable financial year.
10% rebate to CGHS/DDA flats for up to 100 square metres and on the annual value.
A rebate of 20% to owners of group housing flats who pay their MCD property tax before June 30 of a given financial year.

On that note, we have reached the end of this guide. We hope that it resolved all your doubts and queries so that you can enjoy a seamless payment of your property tax in Delhi.

Frequently Asked Questions

All

How can I check my property ID in Delhi?

You will find your property ID mentioned in previous tax receipts or challan.

Who is responsible for property tax in Delhi?

In Delhi, owners of any real estate are subject to pay property taxes. The estate in question can be a commercial or residential property. Moreover, a property owner must pay this tax regardless of whether it is rented out or self-occupied.

What happens if property tax is not paid in Delhi?

In the event of non-payment, you will attract a penalty. The MCD levies a fine of 1% each month on the payable amount.