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    All about SDMC Property Tax in South Delhi

    sdmc property tax
    (Source: pexels)

    South Delhi Municipal Corporation provides several crucial services for the residents in its jurisdiction. 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!

    What is SDMC property tax?

    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.

    Calculation of SDMC property tax

    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:

    1. The annual value of a property

    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 meter 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).
    • Occupancy factor: It depends on the occupancy of a property - whether it is self-occupied by its owner or rented out.
    • Age factor: It is measured on a scale of 0.5 to 1. Newer properties in South Delhi attract a higher rate of tax than older ones.
    • Structure factor: SDMC assigns this factor based on the construction of a property.
    • Flat factor: It is evaluated depending on the total area covered by a flat.
    • Use factor: SDMC assigns this factor to a property based on its usage.

    To ease the calculation process further, you can utilise an SDMC property tax calculator.

    2. The current rate of tax

    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 as of 2021-2022:

    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

    SDMC Commercial Property Tax

    The tax rate for commercial properties

    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

    Payment of SDMC property tax

    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:

    Offline mode of 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:

    • You can complete the payment through debit/credit card, cash, demand draft, or cheque.
    • You can also pay your SDMC property tax by visiting a branch of Axis Bank or HDFC bank in your vicinity.
    • During payment, ensure that the bank statements are in favour of “COMMISSIONER, South Delhi Municipal Corporation.” 

    Remember to carry your property tax documents, such as the following:

    • Your Aadhaar card 
    • Property tax statement 
    • Property ID (which is a unique number of the property)
    • Old property ID (the previous number of the said property through which tax was paid)
    • SDMC property tax challan for previous years

    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 online payment

    SDMC property tax payment online involves the following steps:

    • Step 1: The first step to paying SDMC house tax online is to visit the Municipal Corporation of Delhi or MCD’s official website. 
    • Step 2: This website requires you to choose between East Delhi Municipal Corporation (EDMC), West Delhi Municipal Corporation (WDMC), North Delhi Municipal Corporation (NDMC), or South Delhi Municipal Corporation (SDMC). Choose South Delhi Municipal Corporation or SDMC to pay taxes to your Municipal Corporation.
    • Step 3: Now, log in to the portal or register with the SDMC website by signing up.
    • Step 4: Once logged in, go ahead and pay property tax. At this point, the website displays three options, ‘Apply for new UPIC,’ ‘Register new property for tax payment,’ and ‘Search Property on UPIC.’ 

    If you already possess a Unique Property Identification Number (UPIC), check the property details by selecting the ‘Search Property on UPIC’ option.

    However, if you do not have a UPIC, you must register your property through ‘Apply for new UPIC’ and ‘Register new property for tax payment’ options. 

    • Step 5: When you submit the UPIC on this web portal, you can find a list of properties with details, such as property ID, ward, colony, etc. Subsequently, find the property for which you wish to pay tax. 
    • Step 6: Now, you will spot an ‘Action’ option against each property in the listicle. Select this option and then click on the link that says ‘Use this property to pay tax.’
    • Step 7: Complete your SDMC property tax online payment using your debit/credit card or via net banking.
    • Step 8: Finally, choose the ‘Generate Challan’ option and download an SDMC property tax receipt in a PDF format.

    This ends the first mode in which you can pay SDMC property tax online.

     

    Alternatively, you can also pay property tax online through your registered mobile number. For this, simply follow these steps:

    • Step 1: Visit the SDMC website through your desktop or smartphone.
    • 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 licenses, 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.

    Rebates and exemptions on SDMC property tax

    SDMC extends a rebate on this tax in the following cases-

    • A rebate of 15% for early payment of tax, i.e., during the 1st quarter of a financial year.
    • 30% rebate to senior citizens, ex-servicemen, physically challenged individuals, and women on a single property of up to 200 square metres.
    • A rebate of 10% on the annual value of CGHS/DDA flats of 100 square metres.
    • 20% rebate to owners of group housing flats who pay their property tax prior to June 30 of an applicable financial year.

     

    Furthermore, the following types of properties and group of individuals are exempted from property taxes in South Delhi:

    • Agricultural land/building (dwelling houses are not included)
    • Buildings or vacant lands used for charitable purposes or serving as a heritage site, place of worship, public burial
    • Property martyred on paramilitary or police duty
    • Property whose owner has won a Gallantry Award or is a war widow who uses the entire property for self-residence
    • Property owned by an employee of SDMC who is fully handicapped
    • A sportsperson who has represented the country in international levels
    • Widows of personnel from the Delhi Police, Indian Armed Forces, and Paramilitary
    • Sanitation workers or safai karamcharis

    Zones of SDMC property tax

    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,

    That concludes our comprehensive guide on SDMC property tax. We hope you are now well versed with this tax and can complete your tax payment with the utmost ease.

    Frequently Asked Questions

    How is SDMC property tax calculated?

    SDMC property tax is calculated by multiplying the annual value of a property with the relevant rate of tax.

    SDMC property tax is calculated by multiplying the annual value of a property with the relevant rate of tax.

    Who is responsible for paying property tax in South Delhi?

    Owners of commercial and residential properties in South Delhi are liable to pay SDMC property tax.

    Owners of commercial and residential properties in South Delhi are liable to pay SDMC property tax.

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    Last updated: 2023-01-30

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