Introduction
Property owners in Delhi have to pay MCD property tax to the Municipal Corporation of Delhi (MCD) every year. Properties include residential buildings, commercial properties, and vacant land. Property taxes collected from property owners are considered the main source of income for the civic body. Depending on the region or colony where your property is located, you will have to pay your property tax.
Table of Contents
- How to Calculate Property Tax in Delhi?
- Calculation Method for MCD Property Tax
- Property Tax Concessions in Delhi
- Tax Rates in Delhi 2023-24
- List of Municipal Corporations in Delhi
Payable to South Delhi Municipal Corporation (SDMC), North Delhi Municipal Corporation (NDMC), or East Delhi Municipal Corporation (EDMC). Delhi is also divided into eight categories (A to H) based on the property values in the colonies belonging to each category. The MCD property tax rate and unit area value (value assigned per square meter of property) are different for all eight categories.
How to Calculate Property Tax in Delhi?
MCD calculates property tax using the ‘Unit Area System’ for the calculation of property tax across the city.
- Property Tax Calculation Formula
| Property Tax = Annual Value x Tax Rate, where Annual Value = Unit Area Value per Square Meter x Unit Area of Property x Age Factor x Factor x Construction Factor x Occupancy Factor. |
| Rate of tax | Tax rates for properties in categories A to H are published by the MCD every year. |
| Unit area of property | The built-up area (not the carpet area) in sq meters is taken into consideration for computation. |
| Unit area value | This is an assigned value per sq meter of the built-up area of a property. The unit area value per sq meter differs for categories A to H. |
| Age factor | Newer properties are taxed higher than older ones, based on the age of the property. The value of this factor ranges from 0.5 to 1.0. |
| Use factor. | Residential properties are taxed lower than non-residential ones. The value for residential properties is ‘1’. |
| Structure factor. | RCC constructions are taxed higher than low value constructions. |
Calculation Method for MCD Property Tax
Imagine you own a 1,000-square-feet self-occupied residential property in a colony. It comes under category B. But now let’s know how to calculate property tax.
- Unit area value= Rs 500 per sq metre
- Unit area = 100 square meters.
- Age factor= 0.6
- Structure factor= 1.0
- Occupancy factor= 1.0
- Annual Value = 500 x 100 x 0.6 x 1.0 x 1.0 x 1.0 = Rs 30,000
- Property tax = Annual value x Rate of tax (as mentioned above in category B tax rate) = 30,000 x 12% = Rs 3,600
Net Property Tax = Rs 3,600
Property Tax Concessions in Delhi
MCD offers concessions on certain property tax payments. If you pay your property tax in one installment in the first quarter of the year, you will get a 15 percent rebate on your total tax amount. For the terms and conditions of the applicable tax concession, see Property Tax Concession here.
| Category | Rebate on Delhi property tax |
| DDA/CGHS flats | 10% of the annual value, up to 100 sq metres of covered/built-up area. |
| Group Housing Flats | 20% up to 30th June of the financial year. |
| Women | 30% (only on 1 property and up to 200 sq meters). |
| older citizens | 30% (only on 1 property and up to 200 sq meters). |
| Physically-challenged individuals | 30% (only on 1 property and up to 200 sq meters). |
| Ex-servicemen | 30% (only on 1 property and up to 200 sq meters). |
Tax Rates in Delhi 2023-24
Delhi is also divided into eight categories (A to H) based on the property values in the colonies belonging to each category. MCD property tax rates in Delhi for 2023–24 for property categories, residential property, commercial property, and industrial property concessions are given in the table below.
| Property Category | Residential Property | Commercial Property | Industrial Property | Unit Area Value – Rate per sq. metre |
| A | 12% | 20% | 15% | Rs.630 |
| B | 12% | 20% | 15% | Rs.500 |
| C | 11% | 20% | 12% | Rs.400 |
| D | 11% | 20% | 12% | Rs.320 |
| E | 11% | 20% | 12% | Rs.270 |
| F | 7% | 20% | 10% | Rs.230 |
| G | 7% | 20% | 10% | Rs.200 |
| H | 7% | 20% | 10% | Rs.100 |
List of Municipal Corporations in Delhi
- East Delhi Municipal Corporation (EDMC): People owning property in East Delhi Municipality must pay property tax through the official website. EDMC is classified into two zones. They are Shahdara North and South and are divided into six wards and five colonies each.
- South Delhi Municipal Corporation (SDMC): SDMC is divided into five zones. They are Central, South, West, and Najafgarh. Property owners in any of these four zones in South Delhi must pay tax to the SDMC.
- North Delhi Municipal Corporation (NDMC): Residents of North Delhi must pay property tax only to NDMC in any of the six zones, namely City-SP Zone, Civil Lines, Karol Bagh, Narela, Rohini, and Keshav Puram.
Conclusion
Must be aware of Mosque Property Tax Calculator and Tax Payment in Delhi. Delhi is also divided into eight categories (A to H) based on the property values in the colonies belonging to each category. MCD depends on the property tax rate and unit area value. For more information, visit openplot.
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