South Delhi Municipal Corporation provides several crucial services for the residents in its jurisdiction. Against the services, the municipality collects a direct tax known as property tax. So today, we will delve into the ins and outs of SDMC property tax so that you can pay your taxes without any hassle.
Let us get straight into it!
The South Delhi Municipal Corporation, or SDMC, levies a tax on all real estate properties within its administrative limits known as property tax. This tax is charged on all kinds of properties – from vacant lands to buildings. As a result, if you reside in South Delhi and have a property of your own, you are liable to pay an annual property tax to SDMC.
Additionally, this tax covers both commercial buildings and residential properties. Moreover, you are subject to pay SDMC property tax on your residential properties regardless of whether you use it for self-residence or rent it out.
Now that you know the gist of this tax, let us elucidate on its calculation.
South Delhi Municipal Corporation adopts the Unit Area System for SDMC property tax calculation.
Under this system, the SDMC employs a formula to derive the payable tax amount by a property owner in South Delhi. This formula is highlighted below:
Property tax = The annual value of a property x current rate of tax
However, do not let these terms puzzle you, as we will now elaborate on each of them:
SDMC calculates the annual value of a property by way of a formula, which is as under:
The annual value of a property = Covered area of the property x Unit area value per square metre x Occupancy factor x Age factor x Structure factor x Use factor x Flat factor
Now, we will offer a rundown on the factors in the above formula:
The covered area of property: This indicates the total floor area of a property. Unit area value per square metre: A property’s unit area value depends on its category (we will delve into the various categories of properties in some time).
To ease the calculation process further, you can utilise an SDMC property tax calculator.
South Delhi Municipal Corporation is divided into 8 categories premised upon the valuation of properties in various localities in the jurisdiction. A property’s category ranges from A to H. The rate of SDMC property tax varies with each of these categories.
The table below highlights this difference in tax rates between various categories for FY 2022-23.
The tax rate for residential properties.
|
Category of Property |
SDMC Property Tax Rate (in %) |
|
A |
12 |
|
B |
12 |
|
C |
11 |
|
D |
11 |
|
E |
11 |
|
F |
7 |
|
G |
7 |
|
H |
7 |
|
Category of Property |
SDMC Property Tax Rate for Industrial Properties (in %) |
|
A |
15 |
|
B |
15 |
|
C |
12 |
|
D |
12 |
|
E |
12 |
|
F |
10 |
|
G |
10 |
|
H |
10 |
|
Category of Property |
SDMC Property Tax Rates for Commercial Properties (in %) |
|
A |
20 |
|
B |
20 |
|
C |
20 |
|
D |
20 |
|
E |
20 |
|
F |
20 |
|
G |
20 |
|
H |
20 |
SDMC facilitates the payment of taxes through offline and online routes, which makes the process simple and hassle-free. You can choose either of these alternatives to complete your SDMC property tax payment:
There exist several ITZ cash counters all across South Delhi. Taxpayers in South Delhi can visit any of these ITZ cash counters.
Moreover, before you visit your nearest ITZ cash counter, keep the following points in mind:
Remember to carry your property tax documents, such as the following:
After successfully completing your tax payment, you will receive an SDMC property tax receipt or challan. Keep this receipt safe for future references.
SDMC property tax payment online involves the following steps:
Step 1: The first step to paying SDMC house tax online is to visit the citizen portal of Municipal Corporation of Delhi or MCD’s official website.
Step 2: Find the option of “online services” at the top right-hand corner of this website’s home page.
Step 3: A wide range of online services appears on your screen, such as registration of birth & death, building plan sanction, property tax, and veterinary licences, among others. Go ahead and select “Property Tax”.
Step 4: Under “Citizen Login,” enter your registered mobile number. You will now receive a one-time password (OTP) on this number. Use this password to log into the portal.
Step 5: Now, you will face similar instructions as described earlier. Follow these prompts, complete the payment, and download your SDMC property tax receipt.
Moreover, keep in mind that the entire tax amount must be paid in one lump sum before the SDMC property tax last date, which is June 30.
SDMC extends a rebate on this tax in the following cases-
Furthermore, the following types of properties and group of individuals are exempted from property taxes in South Delhi:
Taxpayers in Delhi pay property taxes according to their zonal area. The following zones fall under the purview of South Delhi Municipal Corporation:
|
Zone |
Colonies in the zone |
Wards in the zone |
|
Najafgarh |
Geetanjali Park, JJ Colony Nangloi, Jeevan Niketan, Kamla Market, Harijan Colony, Prem Nagar, Sultanpuri, Nazaf Garh, Roshanpura, Shiv Vihar Neelwal, |
Nangloi, Pira Garhi, Bijwasan, Roshanpura, Isapur, Sagarpur, Madhu Vihar, Matiala, Mahipalpur, Kakrola, Dabri, Sultanpur Majra |
|
West Zone |
Rajouri Garden (WZ Area), Uttam Nagar, Subhash Nagar, Hari Nagar |
Pratap Nagar, Janakpuri West, Nangal Raya, Subhash Nagar, Rajouri Garden,Tilak Nagar, Tagore Garden, Uttam Nagar |
|
Central Zone |
Lajpat Nagar, HUDCO Place, Friends Colony, Kasturba Niketan, Sarita Vihar, South Extension, Greater Kailash, Govindpuri, Okhla Vihar, Jasola, |
Sewa Nagar, Darya Ganj, Defence Colony, Nizamuddin, Jangpura, Okhla, Bhogal, Kalkaji, Sangam Vihar West, Chirag, Tughlakabad, Harkesh Nagar Sriniwaspuri, Badarpur |
|
South Zone |
Hauz Khas, Nehru Place, Saket, Lado Sarai, Safdarjung Enclave, JJ Colony (Khanpur), Satya Niketan, Delhi University South Campus |
Greater Kailash I, Tilak Nagar, Hauz Khas, Gulmohar Park, Vasant Vihar, Mehrauli, Devli, R K Puram, Chattarpur, Saket Subhash Nagar, Pushp Vihar Janakpuri West, Pratap Nagar, Rajouri Garden, Uttam Nagar, Malviya Nagar, Tagore Garden, Nangal Raya, |
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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