Complete guide about Property tax in Delhi
Owners of residential properties in Delhi, are liable to pay MCD property tax to the Municipal Corporation of Delhi (MCD) every year. Based on the area/colony in which your property is located, you would need to pay your property tax, either to the South Delhi Municipal Corporation (SDMC), the North Delhi Municipal Corporation (NDMC) or the East Delhi Municipal Corporation (EDMC). Delhi is also divided into eight categories, from A to H, based on the values of properties in the colonies belonging to each category. The rate of MCD property tax and the unit area value (assigned value per sq metre of the property) differ for all the eight categories.
Calculation method of MCD property tax:
Consider, you have a 1,000-sq ft self-occupied residential property in a colony which comes under Category B.
- Unit area value= Rs 500 per sq metre
- Unit area = 100 sq metre.
- Age factor = 0.6
- Use factor = 1
- 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
Rebates on property tax in Delhi
The MCD offers rebates on some property tax payments. If your property tax is paid as a lump sum in a single instalment during the first quarter of the year, you will be eligible to receive a rebate of 15 per cent, on your total tax amount.
One should read the terms and conditions for the applicable tax rebate. Here is a look at the property tax rebate for the following categories: