MCD Property Tax: Calculation, Rebates, Online & Offline Payment Procedures

Table of Content:

1. MCD Property Tax: Overview​
2. List of Municipal Corporations In Delhi
3. MCD Property Tax: Calculation
4. Steps To Pay MCD Property Tax Online
5. Steps To Pay MCD Property Tax Offline
6. MCD Property Tax: Mobile App
7. Steps To Pay MCD Property Tax Via Mobile App
8. Steps To Pay MCD Property Tax Without A Property ID
9. MCD Property Tax: A List of Exempted Properties
10. MCD Property Tax: Rebates On House Tax In Delhi
11. MCD Property Tax: Conditions On Availing Rebates & Concessions

When it comes to urban living in India, one of the most crucial civil responsibilities of property owners is paying property taxes. The Municipal Corporation of Delhi (MCD) administers property tax and service charges in Delhi. The department of MCD property tax is responsible for levying and collecting property tax. This article aims to provide a comprehensive overview of MCD property tax, its importance, calculation methods, exemptions, online and offline payment options. 

MCD Property Tax: Overview

The Municipal Corporation of Delhi governs and monitors the administration and management of Delhi. It is divided into three main entities: the North Delhi Municipal Corporation, the South Delhi Municipal Corporation, and the East Delhi Municipal Corporation. The MCD house tax is collected from residential property owners in Delhi each year. Furthermore, the MCD property tax plays a significant role in providing various services to Delhi residents, e.g., sanitation, public health, education, infrastructure development, maintenance of parks, etc.

List of Municipal Corporations In Delhi

For those who are not yet aware, the Delhi Municipal Corporation is known as one of the biggest Municipal Bodies in the world. The DMC is divided into three main categories:

1. SDMC- South Delhi Municipal Corporation

If you are a property owner in South Delhi, you must pay property tax to the SDMC, the South Delhi Municipal Corporation. The south of Delhi is spread over 656.91 sq km and is further categorized into four major zones with 104 wards. 

• South 

• Central

• West 

• Najafgarh Zones 

2. NDMC- North Delhi Municipal Corporation

If you are a property owner in North Delhi, you must pay property tax to the NDMC, the New Delhi Municipal Corporation. The NDMC has acquired an area of 636 sq km and is further categorized into six major zones with 104 wards. You can make the payment for property tax either online or offline. 

• City-SP Zone 

• Karol Bagh 

• Civil Lines 

• Narela

• Keshav Puram 

• Rohini 

3. EDMC- East Delhi Municipal Corporation

The EDMC property tax online or offline payment is made to the East Delhi Municipal Corporation. All the East Delhi property owners are liable to pay EDMC property tax. The EDMC has acquired the 105 sq km area, which is further categorized into three zones and has 74 wards. 

• Sh. South Zone 

• Sh. North Zone 

• Headquarters

MCD Property Tax: Calculation 

The MCD property tax in Delhi uses the Unit Area System method for the property calculation. Below is the formula to calculate the MCD property tax.

 Property Tax = Annual Value X Tax Ratio  

The formula for the annual value is:

Annual Value = Base Unit Area Value X Unit Area X Age Factor X Occupancy Factor X Structure Factor

Rate of tax = the tax rate published by the MCD for A-H categories for that year. 

Note: Delhi is majorly divided into 8 different categories that are segmented into segments named A-H based on which property tax rates are provided. 

Also Read: DORIS Delhi: Property Registration Made Easy in India’s Capital City

While you can pay MCD property tax online or offline based on your comfort, reviewing the list of Delhi Property rates for 2023 is advisable. So, below, we have curated a list of MCD property tax rates in 2023: 

Steps To Pay MCD Property Tax Online

Follow the below-mentioned steps if you wish to prefer the MCD property tax online payment option. 

Step 1: Visit the mcdonline.nic.in/ portal to start with the MCD house tax online procedure.

Step 2: You will get three options: NDMC, SDMC, and EDMC. Choose the option as per your area. 

Step 3: Go to the Online Services page of your Municipal Corporation and click on ‘Property Tax’. 

Step 4: You will be asked to log in using the registration or Sign-up option. (If you are a new user, follow the steps below.) 

Step 5: At the bottom of the page, click on ‘New User’ to Sign Up/Register. 

Step 6: Opt for the ‘Register as Citizen’ option and start mentioning details like your first name, father's or husband's name, and country code. 

Step 7: Now, you will see a tab for registering using a mobile number or email address. 

Step 8: On the search page, you will find details of your registered property for calculating the tax. If you are a registered user, search using the Unique Property ID Code; if you are not, register your property and generate the Unique Property ID Code. 

Step 9: Now mention information like details of ownership, details of property, contact details, and building details. 

Step 10: Now click on ‘Accept’ and then click on the ‘Submit’ option. 

Step 11: You will be asked to pay MCD property tax online using a Debit Card/Credit Card or Net Banking. 

Step 12: Once you have made the online MCD house tax payment, click ‘Generate Challan’ to display the Pay Online Challan Delhi. 

Step 13: Download the Delhi Challan Online payment receipt for future reference. 

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Steps To Pay MCD Property Tax Offline 

While users have the luxury of making MCD property tax online payments, they can also opt for a traditional payment method. You can pay tax at any of the 800 ITZ cash counters across Delhi using a demand draft, a cheque, cash, or a credit or debit card. The MCD property tax receipt will be immediately provided by stating the Tax ID. 

MCD Property Tax: Mobile App 

The online services offered by the Municipal Corporation of Delhi can easily be accessed via the MCD mobile application. The National Informatics Centre develops and maintains the application. If you wish to get an MCD app, you can download the application from the Google Play Store or App Store in a few clicks. 

Steps To Pay MCD Property Tax Via Mobile App 

While many prefer to pay MCD property tax online, you can also pay using the easiest method, i.e., via the app. The benefit of using a mobile application is that it will allow quick and easy registration, real-time updates, transaction history, and others. Furthermore, the app allows users to choose any mode of payment option for MCD property tax.  

Step 1: Download the MCD app from the Google Play Store or App Store. 

Step 2: Login using your registered mobile number. 

Step 3: You will receive an OTP; kindly mention that in the space. 

Step 4:

• Navigate to the registered property details.

• Select PayTax for the desired UPIC.

• Select the financial year.

• Click Submit. 

Step 5: Pay in digital mode and check the tax calculation for the selected financial year. Make the payment using a credit or debit card or net banking. 

After the successful payment, download the MCD property tax receipt for future reference. 

Also Read:  Easy-To-Follow Tricks to Save Money on Property Tax Bill

Steps To Pay MCD Property Tax Without A Property ID

You have the liberty to pay MCD property tax online even if you have forgotten your property ID or haven't received one. However, paying MCD property tax online without an ID only applies to first-time users. Below are the steps to pay MCD property tax online without a property ID.

Step 1: Navigate to the MCD property tax portal @https://mcdonline.nic.in/. 

Step 2: Select your category: NDMC, SDMC, or EDMC property tax. 

Step 3: Select the property tax option, and a new page will appear on your screen. 

Step 4: Select the ‘Click Here’ option if a property ID has not been allotted earlier. 

Step 5: A form will appear on your screen where you must mention property ownership details. 

Step 6: Select ‘I have read and accept the declaration made above’ and press ‘Submit’. 

Step 7: You will receive a property ID on your registered mobile number, which you can use in the future. 

Step 8: Now make the payment using debit, credit, or net banking, and a challan will be generated post-payment. 

MCD Property Tax: A List of Exempted Properties 

Below is the list of properties in Delhi exempt from making the payment for MCD Property Tax. 

• Concrete structures or land used for graveyards, cremations, or public worship. 

• Heritage lands of Delhi

• Buildings that are used for charitable purposes

• Any property owned by a war widow, gallantry award winner, martyred police officer, or paramilitary personnel

• A property owned by the international medal holder. 

MCD Property Tax: Rebates On House Tax In Delhi 

The government offers various rebates. If you pay property tax as a lump sum in a single installment during the first quarter of the fiscal year, you will receive a 15% discount on your total tax amount. Below are the categories of properties entitled to receive rebates in all jurisdictions in Delhi. 

MCD Property Tax: Conditions On Availing Rebates & Concessions 

Below, you will find conditions that should be met in order to avail of a concession or rebate on MCD Property Tax. 

• A rebate is applicable if the property is spread over 200 sq m. For DDA/CGHS flats, the limit is 100 sq m. 

• Properties that are used for residential or self-use purposes are eligible for rebates. 

• If you are a joint owner of a property, in that case, concessions are offered based on the property share of the owners. 

Conclusion

Paying MCD property tax is a legal obligation and a civic responsibility that contributes to improving the city's infrastructure and services. Understanding the calculation methods, exemptions, and online and offline payment options can help property owners fulfill their duties efficiently.