For urban municipal governments in India, collecting property taxes is an essential source of revenue. Municipalities with a state impose taxes, and the money they raise uses to fund various facilities. The same applies to Delhi, where they will check that the property owner is paying yearly tax to simplify the process for taxpayers.
What is the MCD Tax?
The responsibility of collecting property taxes from Delhi residents falls on the Municipal Corporation of Delhi, and there is an annual tax collection deadline that the MCD sets. You can also use the Municipal Corporation of Delhi website to make the payments by following specific steps.
If you own a residential property in Delhi, you must pay the property tax to the MCD. All the real estate that falls within the body’s jurisdiction, including vacant properties, is subjected to the MCD property tax. The Delhi Municipal Corporation was replaced in 2012 by three new organisations.
You have to pay your property tax to the MCD considering and depending on the area/ neighbourhood in which you reside, or your property is situated. So the entire city of Delhi is split into eight categories from A to H according to the value of the properties in each colony, with MCD separated into North MCD, South MCD, and East MCD.
The list of Municipal Corporations in Delhi is as follows:
East Delhi Municipal Corporation (EDMC)
South Delhi Municipal Corporation (SDMC)
North Delhi Municipal Corporation (NDMC)
How is the Property Tax Calculated?
The Municipal Corporation of Delhi operates the Unit Area System to determine property taxes across the city. The MCD property tax calculation formula is as follows:
Property Tax= Annual Value* Rate of Tax
Annual Value= Unit area value per square meter x unit area of property x age factor x use factor x structure factor x occupancy factor.
Rate of Tax = MCD, the tax rate for A–H categories every year.
You can find the applicable rate of tax on the official website of MCD Property Tax.
List of Delhi Cities Divided into Categories
Delhi is divided into eight categories, from A to H, by MCD. Based on the values of nearby properties, these groups are:
1. Category A
Anand Niketan, Basant Lok DDA Complex, Bhikaji Cama Place, Friends Colony, Friends Colony East, Friends Colony West, Golf Links, Kalindi Colony, Lodi Road Industrial Area, Maharani Bagh, Nehru Place, New Friends Colony, Panchshila Park, Rajendra Place, Shanti Niketan, Sunder Nagar and Vasant Vihar.
2. Category B
Anand Lok, Andrews Ganj, Defence Colony, Greater Kailash I, Greater Kailash II, Greater Kailash III, Greater Kailash IV, Green Park, Gulmohar Park, Hamdard Nagar, Hauz Khas, Maurice Nagar, Munirka Vihar, Neeti Bagh, Nehru Enclave, Nizamuddin East, Pamposh Enclave, Panchsheel Park, Safdarjang Enclave, Sarvapriya Vihar and Sarvodaya Enclave.
3. Category C
Alaknanda, Chittaranjan Park, Civil Lines, East of Kailash, East Patel Nagar, Jhandewalan Area, Kailash Hill, Kalkaji, Lajpat Nagar I, Lajpat Nagar II, Lajpat Nagar III, Lajpat Nagar IV, Malviya Nagar, Masjid Moth, Munirka, Nizamuddin West, Panchsheel Extension, Punjabi Bagh, Som Vihar and Vasant Kunj
4. Category D
Anand Vihar, Daryaganj, Dwarka, East End Apartments, Gagan Vihar, Hudson Line, Indraprastha Extension, Janakpuri, Jangpura A, Jangpura Extension, Jasola Vihar, Karol Bagh, Kirti Nagar, Mayur Vihar, New Rajinder Nagar, Old Rajinder Nagar and Rajouri Garden.
5. Category E
Chandni Chowk, East End Enclave, Gagan Vihar Extension, Hauz Qazi, Jama Masjid, Kashmere Gate, Khirki Extension, Madhuban Enclave, Mahavir Nagar, Moti Nagar, Pahar Ganj, Pandav Nagar, Rohini and Sarai Rihilla.
6. Category F
Anand Parbat, Arjun Nagar, Daya Basti, Dilshad Colony, Dilshad Garden, BR Ambedkar Colony, Ganesh Nagar, Govindpuri, Hari Nagar, Jangpura B, Madhu Vihar, Majnu Ka Tila, Mukherjee Park Extension, Nand Nagri, Uttam Nagar, Zakir and Nagar and Okhla
7. Category G
Ambedkar Nagar Jahangirpuri, Ambedkar Nagar East Delhi, Amber Vihar, Dabri Extension, Dakshinpuri, Dashrath Puri, Hari Nagar Extension, Vivek Vihar Phase I and Tagore Garden.
8. Category H
What Is the Process of Filing Property Taxes Online?
You can pay your MCD property tax online by using the following steps:
- Go to the MCD website to begin an online house tax payment.
- Select EDMC, NDMC, or SDMC to pay taxes to the appropriate municipal corporation.
- Start logging into the portal now, or signup for an account on the website.
- After logging in, you can continue paying your property tax. There are three options now on the website: Apply for a new UPIC, Browse Property on UPIC, and Register property for tax payment.
- If you already know your Unique Property Number, you can check property details using the Search Property on UPIC option below.
- However, if you don’t have a UPIC, you should file the property using the Apply for a New UPIC and Register New Property for Tax Payment options.
- As you enter the UPIC on this page, you can access information about the property, such as the property ID, colony, ward, etc.
- MCD property taxes can pay online with debit or credit cards and net banking.
- Selecting Generate Challan will allow you to download the MCD property tax receipt.
How Can I Pay My Property Tax Online?
You can file your taxes at one of the 800 ITZ cash outlets located around Delhi. An immediate MCD property tax receipt generates after the payments are submitted.
Delhi additionally mandates that the entire property tax should pay in a single payment before starting a specific financial year. Therefore, you must pay your due MCD property tax before the cutoff date online or offline.
Rebate on MCD Property Tax
- Seniors, veterans, individuals with physical disabilities, and women who own up to 200 square meters of property are entitled to a 30% rebate on property taxes from MCD.
- A 15% rebate is available to taxpayers who pay their taxes in full in the first quarter of the applicable financial year.
- Up to 100 square meters and 10% off the average income are available for CGHS/DDA flats.
- Owners of group housing apartments are entitled to a 20% discount on their MCD property tax if they pay it by June 30 of the applicable financial year.
Exemptions from MCD Property Tax
Many individuals and organisations in Delhi are exempt from paying property taxes, including:
- Vacant buildings or land used as a place of worship, a historical site, a cemetery, or for charitable purposes.
- Property belonging to those who passed away while serving in the paramilitary or police.
- Agricultural building/property.
- An athlete who has achieved success in international competitions.
- A home held by a laureate of the medal of gallantry or a war widow who resides there solely.
- Property owned by a disabled South MCD employee.
Penalty for Delayed Payments
The MCD will impose a monthly punishment of 1% of the unpaid tax if you fail to make your property tax payment by the due date. MCD will announce the deadline to pay the tax.
MCD property tax must be paid yearly to the Municipal Corporation of Delhi by property owners in Delhi (MCD). The properties include undeveloped land, business and residential buildings, and structures, and property taxes paid by real estate owners are the local government’s main funding resource. There are categories divided in Delhi to pay property tax, which covers the whole city.
What is the method of Calculating MCD?
The formula used to calculate the Property Tax is: "Property Tax = Annual Value x Rate of tax"
Is there any way to pay MCD tax offline?
Yes, you can pay the MCD property tax offline by going to one of the 800 ITZ cash booths strategically positioned around Delhi. Customers are requested to pay the tax either by demand draft or cheque.
Is there any difference between Municipal Tax and Property Tax?
Yes, you will have to pay two different taxes: the municipal tax and the property tax.
What if somebody forgets their Municipal ID?
Suppose you lose your property tax ID because a replacement will not provide. Get in touch with an MCD representative who can assist you if you lose your ID. Additionally, you will pay the penalty for receiving a new property tax ID.
What will be the consequences of not paying the Property Tax?
In that case, the authorities have the jurisdiction to collect it under sections 155 and 156 of the Delhi Municipal Corporation Act, 1957, through the seizure of their property, bank account, rent, and all movable property.