All you need to know about the MCD Property Tax Real Estate Investment

All you need to know about the MCD Property Tax

  • 1 November 2019

In order to maintain the basic urban civic services property tax is levied by local bodies/local municipal authorities. It is their principal source of revenue. Property owners in Delhi have to pay property tax every year, the authority of which is delegated to municipalities within the state, to the Delhi Municipality body called Municipal Corporation of Delhi (MCD) – divided into North, South and East.

Property tax is levied on all buildings including vacant land. MCD uses the Unit Area System model for tax calculations. It is dependent on the built up area, the construction period, the building structure, location and use of property. Computation method remaining the same, the tax rate varies for residential (self occupied or rented), commercial and industrial properties.

Formula for property tax computation

Property tax = Annual Value x Rate of tax
The annual Value for a building is calculated by multiplying the unit area value per sq metre, covered property area, age factor, use factor, structure factor, occupancy factor and flat factor.
Unit area value per sq metre: Value per sq metre of the built up area

Covered area: Total floor area in all the floors

Age factor: Ranges from 0.5 to 1 based on the property age

Use factor: Assigned by MCD based on the property usage

Structure factor: Depends on the construction

Occupancy factor: Depends on whether self occupied or rented

Annual value for vacant land is computed by:

Unit area value per sq metre * area of vacant land * Use factor * Occupancy factor * 0.3

Steps for MCD property tax online payment

You can pay your MCD property tax online using property ID allotted
Steps:

  • Choose your zone – South, North or East
  • Agree to the terms and conditions and click on ‘Click here to file property tax 2019-20’
  • Enter either property ID and click on ‘Submit’
  • You will be directed to the property ownership details page
  • Enter the property details; after automatic computation click on submit
  • Pay tax either via any payment method
  • Click on ‘Generate Challan’

You can also check details of property tax arrears and penalties, and also calculate late fees and interest amounts.

Complete and thorough knowledge of the MCD property tax nuances helps a great deal, especially when you are considering properties in Delhi. In a bustling residential hub like Gurgaon, it’s always advisable to be well-aware of taxation norms. This will not only make your home-buying experience hassle-free, but also give you confidence to explore premium projects, like Mahindra Luminare. Offering expansive penthouses in Gurgaon along with 3 & 4 BHK apartments, Mahindra Luminare is one project worth checking out for sure.

References:
1. Mcdpropertytax.in
2. Clear Tax – MCD Property Tax
3. Housing.com – Guide Paying Property Tax Delhi
4. My Loan Care – Property Tax in Gurgaon, MCG
5. Makaan.com – How could you pay property tax online.
6. Image Source – freepik.com/free-photo/house-model-near-blocks-with-property-tax-text-white-background_4831188.htm



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