MCG Property tax: Overview

As an owner of a property or a house in Gurgaon, you need to pay MCG property tax every year for the property you own to your local municipal corporation or civic body. Even though residents all across India have to pay a property tax, the rate varies across states. For instance, as a resident of Gurgaon, your property tax rules are defined by your local authorities and you fall under the MCG property tax regime.

MCG or the Municipal Corporation of Gurgaon levies tax on your property in Gurgaon based on the area, property size, construction, building details and more. You have to fulfil your tax liability even if the house is left vacant. The tax period for property tax MCG starts in April and ends in March (next year).

In order to make the payment of property tax a hassle-free experience, the Municipal Corporation of Gurgaon in 2016 announced its collaboration with private banks, which allowed the collection of MCG property tax from every resident’s doorstep. This move by the Municipal Corporation of Gurgaon has increased the collection of property tax and heightened trust towards the civic body. Today there are various other ways to pay your MCG tax, but before that here is what you need to know about your property tax.

How to Calculate MCG House Tax?

All across India, the basic formula for property tax is base value × built-up area × Age factor × type of building × category of use × floor factor. However, based on the civic body in question the formula is likely to alter. For MCG property tax calculation, you can visit the official government website and enter the required details to check your total tax liability.

Typically, the Municipal Corporation of Gurgaon for tax purposes categorises the residential properties as independent houses, flats or apartments and vacant land plots and the charges vary accordingly, as mentioned below.

Property tax rate on independent ground floor homes built on plots

House area Property tax per year
Up to 300 square yard (sq. yard) Rs 1 per sq. yard
From 301 to 500 sq. yard Rs 4 per sq. yard
From 501 sq. yard to 1,000 sq. yard Rs 6 per sq. yard
From 1,001 sq. yard to 2 acre Rs 7 per sq. yard
Above 2 acre Rs 10 per sq. yard
 

If you own a house of multiple floors built on your plot, you can enjoy a 40% rebate on the first floor and a 50% rebate on the second floor on your total MCG property tax liability. However, if you do not own the whole house and have sold each floor individually, then multiple ownership will not fetch you a rebate.

Property tax rate on flats in housing societies in Gurgaon

House carpet area Property tax per year
Up to 2,000 sq. ft Rs 1 per sq. ft
From 2,001 to 5,000 sq. ft Rs 1.20 per sq. ft
Above 5,000 sq. ft Rs 1.50 per sq. ft
 

Property tax rate on vacant plots in Gurgaon

Vacant plot area Property tax per year
Up to 100 sq. yard Nil
From 101 to 500 sq. yard Rs 0.50 per sq. yard
Above 500 sq. yard Rs 1 per sq. yard
 

Commercial, industrial and institutional plots

Size Rate
Up to 500 sq. yard Nil
101 sq. yard and above Rs 5 per sq. yard
501 sq. yard and above Rs 2 per sq. yard
 

Apart from these rates, commercial property, shops, and houses that are put on PG accommodations follow a separate MCG property tax rate, so before you decide to file your tax it is important to check the rates applicable on your property. Under certain conditions, you may also be able to enjoy a full rebate on property tax. For instance, if you own a flat of up to 2,000 sq. ft in a housing society that has a carpet area of less than 2,000 sq. ft, you are not required to pay any property tax MCG. The Municipal Corporation of Gurgaon has also started offering a 100% property tax rebate on Lal Dora properties since April 2020.

You can also claim a 10% rebate on the MCG tax payment by making an advance payment on your tax before July 31 of the assessment year. Also, you can claim a one-time 30% rebate on the property tax provided you clear your dues within 45 days of getting the MCG property tax bill. This apart, all building or plot attached to any religious properties like temple, gurudwara, mosque or church are exempt from MCG property tax.

Steps to Pay MCG Property Tax Online

The Municipal Corporation of Gurgaon makes MCG tax payment an easy experience. You can make your MCG house tax payment online or offline, based on your convenience. To make the payment offline in Gurgaon you will have to visit the Property Tax Collection Centres, also known as the Citizen Facilitation Centres. Alternatively, you can visit any branch of Oriental Bank of Commerce in the city also to pay your property tax. You can simply visit a centre of your choice and mention your property ID or furnish your property tax bill to proceed with your MCG house tax payment. In case you want to avoid visiting the MCG office or bank, then you can choose to pay your MCG property tax online using 3 easy steps, as follows.

  • Step 1:Log on to https://www.mcg.gov.in/HouseTax.aspx. On the landing page, click on the ‘Property Tax’ option. In case you want to check your bill before proceeding with the payment then click on the ‘Property Tax Bill’ option. If you’re ready to pay, proceed with the ‘search, assess or pay your property tax’ option under the ‘Property Tax’ tab.
  • Step 2:Now you will land on a page that will have a form where you will have to type in all the details of your property such as property ID, locality, ward, zone, address, owner name, father/husband name, mobile number, and email ID. Correctly fill in all the details in the tabs and then click on the ‘Search’ button.
  • Step 3:On hitting ‘Search’ you will be shown your total property tax. Check the amount and match it with your bill or calculation, and in case of any discrepancies, you can raise a complaint or request on the website itself or visit your nearest centre for a resolution. However, once ready you can proceed to make the MCG property tax online payment using your debit or credit card details. You can choose net banking or UPI payment as well. Once you key in all the details and pay, you will receive an acknowledgement and receipt for your successful MCG house tax payment.

Keeping the MCG property tax rebates and other factors in mind, you can proceed to invest in a property in Gurgaon to enjoy maximum tax rebates and exemptions. In order to make your loan application hassle-free and to gain access to a high-value low-interest loan, look no further than Bajaj Finserv. Here you can get a loan against property of a high value on an affordable interest rate by meeting simple eligibility terms

FAQ

How Do I pay MCG property tax?

Pay Property tax in Gurgaon in just few simple steps:

  • Log on to www.mcg.gov.in/HouseTax.aspx
  • Click on the ‘Property Tax’ option and then click on  pay your property tax option
  • Pay the amount
  • Once done you will receive receipt for your successful MCG property tax payment.