Guide to Pay Property Tax in Delhi

Property Tax is an annual amount paid by a landowner to the Local Government or the Municipal Corporation of his area. The property includes all tangible real estate property, his house, office building and the property he has rented to others. It is a recurring charge that homeowners have to pay every year. However, the tax amount varies from one location to another. An owner of residential property in Delhi is liable to pay property tax to the Municipal Corporation of Delhi (MCD) every year.
MCD levies property tax on all buildings including Vacant Land.  The MCD is divided into North MCD, South MCD, and East MCD. Further, the entire city of Delhi is divided into eight categories from A to H based on the value of properties in the colonies belonging to each of these categories.
The rate of property tax and the unit area differ for all of the eight categories. Out of the three methods of computing property tax (i.e. Annual Rental Value, Capital Value System, Unit Area System). MCD chose to adopt the Unit Area System which is also recommended by the Government of India.

(a) Computation of MCD Property Tax by Unit Area System
  Property Tax= Annual Value* Rate of Tax
Annual Value is calculated as follows:
Unit area value per sq metre* covered area of property * Age factor* Use factor* Structure factor* Occupancy factor* Flat factor
Some need to know terms which one must know to calculate MCD Property Tax:
1. Unit area value per sq metre is the value per sq metre of the built-up area of the property based on the category it belongs to
2. The covered area of the property is Total Floor Area in all the floors, including the thickness of walls, space of covered verandah and courtyard, gangway, garage, common service area and other prescribed space.
3. Age factor ranges from 0.5 to 1 based on the age of the property. New properties are taxed higher compared to older ones.
4. Use factor is the factor assigned by MCD based on the usage of the property.
5. Structure factor depends on the construction.  RCC Constructions are taxed higher than PCC Constructions.
6. Occupancy factor depends on whether the property is self-occupied or rented out. Properties that are rented out are taxed higher than self-occupied ones.
7. Rate of tax: Tax rates for properties in categories A to H are published by the MCD every year.

(b) Due date and Penalty
(1) The entire property tax paid in one lumpsum before the first quarter is given a rebate of 15% on total tax.
(2) A rebate amounting to 10% of an annual value is given to DDA/CGHS flats, upto 100 sq metres.
(3) A rebate of 30% is given to senior citizens, women and physically challenged only on one property.
(4) Any delay in the payment of property tax will attract penal interest @ 1% for every month of delay.

(c) Steps to pay online
1. Go to www.mcdonline.gov.in and choose your respective property region (South MCD, North MCD or East MCD)
2. Check the box for agreeing to the terms and conditions and click on ‘Click here to file property tax for the respective year’.
3. Choose to enter either property ID for tax paid in any year and click on submit.
4. If in case you don’t have any property ID allotted, click on ‘Click here to file your return if property ID has not been allotted earlier’.
5. You will be directed to a page containing property ownership details.
6. Enter the property details required and tax will be computed automatically and click on submit.
7. Pay tax either by using credit/debit card or net banking.
8. Click on generate the challan and the official challan will be displayed.
Offline payment facility is also given which can be made at any of the ITZ cash counters all across Delhi. An instant receipt is issued after the payment which contains Property ID.