Property Tax Guide-Delhi
Tax payers in Delhi are supposed to pay property tax bills to the respective Municipal Corporation which has the jurisdiction over the locality in which the property lies. Till recently, the whole property tax collection system was top-down in Delhi, with citizens at the receiving end; however, the whole system has been restructured with the help of technology to make the process simple and citizen centric. Given below are the details of the property tax and associated systems that would help the tax payers in Delhi.
The Municipal Corporation of Delhi (MCD) has been trifurcated into North Delhi Municipal Corporation (NDMC), South Delhi Municipal Corporation (SDMC) and East Delhi Municipal Corporation (EDMC).
Property Tax Guide-North Delhi
Property tax is the prime source of revenue for the North Delhi Municipal Corporation (NDMC). The revenue collected by the NDMC is thus used to uphold and maintain the basic civic amenities and services in North Delhi. In an endeavor to make the property tax system simple, transparent, efficient and citizen-centric, the Property Tax Department of NMCD has adopted the advanced approach of Public Private Partnership (PPP model). Read on to know more about important aspects that are associated with property taxes in North Delhi.
Assessment and Calculation of Property Tax in North Delhi
Quite contrary to property tax assessments systems adopted in major cities such as Bengaluru and Chennai, the North Delhi Municipal Corporation (NDMC) has adopted the Unit Area Tax Assessment system that is recommended by the Government of India.
The online property tax calculator available at official website of Municipal Corporation of Delhi is for sure the most simplified and user-friendly property tax calculator. Tax payers just need to input their property id, which can be found in your previous Property Tax Challan or Property Tax Receipts.
Conversely, if you are keen on calculating the property tax yourself without the help of the online calculator available on the NDMC website, then you must first understand that in the Unit Area Tax Assessment System, the property tax is dependent on factors such as the Unit Area Values, Rate of Tax, Age Factors, Structure Factors, Flat factor, Occupancy factor and on the factor whether the user is existing or new. Here is the formula for the calculation of property tax in Delhi:
Property tax = Annual Value × Rate of Tax
Where Annual Value = Unit Area Value × Age Factor × Use Factor × Structure Factor × Flat factor × Occupancy Factor
The values attached to all these factors can be found at MCD’s Multiplicative Factors.
Rebates and Concessions on Property Tax in North Delhi
The North Delhi Municipal Corporation offers 30% rebate on applicable property tax to senior citizens, women owned residential properties, physically challenged and ex-servicemen. These rebates are exclusively applicable to properties that self-occupied and are used for residential purpose only.
The NDMC also offers a rebate of 10% to DDA and Cooperative Group Housing Society flats with a covered area of not more than 100sq.meters on pro-rata basis. As in the earlier case, the property should be used for residential purposes only for the rebate to be applicable.
Tax payers who pay the total tax due in one installment before 30th June are entitled to a 15% discount on the annual property tax amount. An additional rebate of 20% (in addition to the 15% discount) can be availed by tax payers who own ‘residential –group housing’ property and pay the total outstanding property tax before 30th June in the first quarter of the year. In the same way, an additional rebate of 40% ( in addition to the basic 15% rebate) is offered to the owners of Government Aided Schools who pay the total property tax bill before the last date of the first quarter of the year, i.e., 30th of June.
Where to pay property tax in North Delhi
The easiest and the most convenient way to pay property tax in North Delhi is to visit their online payment portal and input the property id, after which they would be guided to the payment gateway.
However, if you prefer to make a direct payment, then you will have to walk in to the nearest authorized ITZ Cash Outlet in North Delhi.
You can also choose to pay through cash, cheque or DD at Axis bank, HDFC Bank and Citizen Service Bureau Centers. The cheque or DD should be drawn in favour of “Commissioner, North Delhi Municipal Corporation”.
Consequences of delay or default on payment of property tax bill in North Delhi
There is a penalty of 2% per month in the case of delay in payment of property tax. However, in some case, the NMCD can resort to steps such as attachment of bank accounts, movable and immovable properties. In some cases of extreme default, you can even face imprisonment of up to 7 years.
Property Tax Guide – South Delhi
The South Delhi Municipal Corporation (SDMC) is a part of the Municipal Corporation of Delhi (MCD) and hence the assessment and calculation system, payment system, rebates and penalties are same as mentioned in the North Delhi Property Tax Guide.
Where to pay property tax in South Delhi
The online payment for South Delhi is the same as East and North Delhi, and one can pay MCD Property online. One just needs to enter the property id after which the site will direct accordingly for payment.
Given below is a list of ITZ Cash Counters in South Delhi where one can pay the property tax bill directly. These centers accept payment through cash, card, cheque and DD. Cheques and DDs should be drawn in favour of “Commissioner, South Delhi Municipal Corporation”.
The detailed list of ITZ Cash retailer list Delhi can be found at ITZ Cash Counters-South Delhi.
For direct payments, the tax payers can also visit the nearest Axis Bank branch (only Delhi and NCR branches), HDFC Bank branch, ITZ Cash counter or one of Customer Service Bureau Centers.
Property Tax Guide – East Delhi
The East Delhi Municipal Corporation (EDMC), just like the North Delhi Municipal Corporation (NDMC) and the South Delhi Municipal Corporation (SDMC) is an integral part of the Municipal Corporation of Delhi (MCD) and hence follows the same assessment methods, payment systems, rebates and concessions as the NDMC and SDMC. Even the online property calculator and the payment portal is the same as for NDMC and SDMC. Visit MCD Property tax Online.
Where to make direct property tax bill payments in East Delhi
If you are one of those who still like to make direct manual bill payments, then you can visit one of the following ITZ Cash Counters in East Delhi to pay your property tax bill. The cheque or DD should be drawn in favour of “Commissioner, East Delhi Municipal Corporation”.
The detailed list of the ITZ Cash Counters in East Delhi can be found at ITZ Cash Counters-East Delhi.
For direct payments, the tax payers can also visit the nearest Axis Bank branch (only Delhi and NCR branches), HDFC Bank branch or one of Customer Service Bureau Centers.
Delhi Property Tax Payment Center Details.
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