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Understanding Property Taxes and Regulations in Delhi NCR

Date - 15 March 2024
Understanding Property Taxes and Regulations in Delhi NCR

Everyone who falls under the tax-paying slab pays the Income Tax in India as the income of a person from various sources is subject to income tax. Similarly, the immovable property of a person is also subject to tax and every piece of real estate is taxable.

The tax paid on the properties is called “Property Tax” and we can define the property tax in the following way –

Property tax is an annual amount paid by a property owner to the municipal corporation of a particular area or the local government. However, the property tax in Delhi NCR is levied on all kinds of properties including lands, buildings, etc. The rate of tax however varies and depends on region to region. That means you will be levied the tax rate of your circle rate.

Is it Necessary to Pay Property Tax?

Paying property tax is necessary as it is the primary source of revenue for the Municipal Corporation of the area. With this revenue only, the municipal corporation would be able to provide several important facilities to the people living in the region.

Putting it in other words, when we pay property tax to the Municipal Corporation of a particular area every year, the local municipal body will provide some important services and facilities to the people living in the area including –

  • Cleanliness in the area
  • Water supply
  • Maintenance of Civil Facilities.

The Property Taxes in Delhi NCR & How is it Calculated?

Property taxes in Delhi are calculated based on the annual property value and there are different categories according to which the property tax is applicable. The capital city of India i.e. Delhi is divided into 8 different categories of property tax and it is segmented from A to H. These categories have different tax rates which are as follows –

Category Residential Property Commercial Property Industrial Property
A 12% 20% 15%
B 12% 20% 15%
C 11% 20% 12%
D 11% 20% 12%
E 11% 20% 12%
F 7% 20% 10%
G 7% 20% 10%
H 7% 20% 10%

In Delhi, 3 Municipal corporations are responsible for collecting the property tax, including –

  • North Delhi Municipal Corporation (NDMC)
  • South Delhi Municipal Corporation (SDMC)
  • East Delhi Municipal Corporation or (EDMC).

As mentioned in the table above, the property tax is varying based on different property types and this property tax rate is important to determine the total tax payable. If you own a property in Delhi, it is mandatory to pay the property tax in Delhi. The taxpayers can pay the property tax in both ways i.e. online or offline.

However, don’t forget to receive the tax receipt after paying the tax because it’s an important document that will be needed in the future to claim other benefits such as loans against property tax exemptions, etc.

The Payment Methods of Paying Property Taxes in Delhi

There are two payment methods of paying property taxes in Delhi NCR i.e. offline payment method and online payment method. Let’s explain both the payment methods in detail below –

How to Pay Property Taxes in Delhi Offline?

The payment of property tax offline in Delhi can be made at any of the ITZ cash counters that are available all across Delhi. However, once you make the payment, an instant payment receipt is issued to you which contains your property tax ID.

The payment of the property taxes in Delhi offline can be done in several ways –

  • Cash
  • Cheque
  • Demand Draft
  • Debit Card
  • Credit Card etc.

Moreover, you can also pay the property tax in Delhi NCR by visiting the nearest branch of –

  • HDFC Bank
  • Axis Bank or
  • Customer Service Bureau Centre nearby.

How to Pay Property Taxes in Delhi Online?

The Municipal Corporation of Delhi allows the residents of Delhi to pay property tax online in Delhi and here are some steps that you should follow to pay property tax online –

    Step 1 –Visit the official website of the Municipal Corporation of Delhi i.e. visit MCD Online and select your property area,

    Step 2 –In the next step, click on ‘Online Filing of Property Tax Returns’, you can find this option under the ‘Property Tax’ tab,

    Step 3 –Read the terms and conditions carefully and after reading the terms and conditions click on the option of ‘click here to file property tax’,

    Step 4 –In this step, you will be required to input your property ID. As an alternative, you can also select the option of ‘Click Here to file your return if property ID has not been allotted earlier’,

    Step 5 –After clicking on the tab, you will be required to fill in property details such as –

    • Ownership Details
    • Property Details
    • Contact Details
    • Building Details and
    • Tax Calculations.

    Step 6 –In the next step, you need to enter the details of any previous taxes that you have yet to submit,

    Step 7-Cross-check the details you’ve entered and verify before submitting your details,

    Step 8 –You can pay your tax thereafter, however, once you have paid the tax, don’t forget to download your property tax bill.

Pay Property Tax through the MCD Online App

Recently the South Delhi Municipal Corporation (SDMC) has introduced a mobile app that will allow citizens to pay the MCD property tax conveniently and hassle-free. However, this app has been designed for all three municipal corporations such as –

  • NDMC
  • SDMC
  • EDMC

The users need to download the app first and then visit the online portal of MCD where the user will get online service provided by MCD and when the user clicks on that option, he/she will be redirected to the page with quick links to access numerous online services.

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