About Property Tax Rates in Delhi?

Property tax in Delhi is calculated according to the annual value method. Delhi is divided into 8 different categories, segmented from A to H. 3 municipal corporations, namely, North Delhi Municipal Corporation or NDMC, South Delhi Municipal Corporation or SDMC, and East Delhi Municipal Corporation or EDMC are responsible for collecting property taxes from these categorised areas.

Property or house tax is calculated based on the annual value of a property multiplied with the rate of tax. You can pay your property taxes online as Delhi municipality is one of the very few in the country that allows this facility.

  • For Category A – 12% tax on residential property, 20% for commercial, and 15% for industrial property.
  • For Category B – Same as Category A.
  • For Category C – 11% house tax, 20% tax on commercial property, and 12% tax on industrial property.
  • For Category D – Same as Category C.
  • For Category E – Same as Category C.
  • For Category F – 7% municipal tax on residential property, 20% tax on commercial property, and 10% tax on industrial property.
  • For Category G – Same as Category F.
  • For Category H – Same as Category F

These rates are applicable as EDMC, SDMC, and NDMC property taxes.

The total taxable sum depends on some other factors as well including –

  • Unit Area Value – An assigned value for every square meter of built-up area for a particular property.
  • Unit Area of Property – The total built-up area in square meters. Municipal taxes in Delhi, including EDMC property tax, are calculated based on the built-up area instead of the carpet area of the property.
  • Age – Newly constructed properties usually attract higher taxes as they have higher market value.
  • Usage Factor – You will have to pay lower taxes on residential properties when compared to non-residential units. It can also vary when paying income tax on sale of land.
  • Occupancy Factor – You will have to pay a higher tax on rental income rather than self-occupied ones because it acts as an additional source of income.
  • Structure – RCC (Reinforced cement concrete) constructions usually attract higher taxes when compared to low-value constructions.

This is a brief overview of the current property tax rate in Delhi. Remember to pay the necessary taxes in time and keep the receipt for future use if you want to avail tax benefits such as loan against property tax exemptions.

Guidelines to Pay Property Tax Online in Delhi

 

Property tax is levied and collected by the Municipal Corporation of Delhi. It is one of the few municipal bodies that offer the facility to pay property tax online.

The online process is simple and streamlined, ensuring that the taxpayer is able to complete the process in the least amount of time. Let’s take a look at how one can file their home or land tax online in Delhi.

Step 1 – Visit the official website of the Municipal Corporation of Delhi and select your corresponding area.

Step 2 – Select the option “Online Filing of Property Tax Returns” under “Property Tax” tab to continue with the process of paying house tax online. You will be redirected to a Terms and Conditions page; go through the details thoroughly and continue by selecting “Click Here to File Property Tax.”

Step 3 – The website will enquire for your property ID, enter the correct details in the allocated space. If you do not have your property ID, select the option stating “Click Here to File Your Return if Property ID has not been Allotted Earlier.”

Step 4 – You will have to update certain property details, like –

  • Ownership Details – Information regarding Ledger Folio number, type of ownership, and type of property.
  • Property Details – Details of the housing colony (if any), property number, and complete address.
  • Contact Details – Your phone number, email address, and other contact details, including bank details.
  • Building Details and Tax Calculations – You will have to enter all the other details of your property that are required to calculate municipal tax online. It includes – floor number, covered area, purpose of use, structure, occupancy, year of construction, exemption category, etc.

Step 5 – Enter details of any previous arrears (if any) that you are yet to submit.

Step 6 – Carefully go through all the details and click on “Accept” to submit the duly filled form.
After submission and payment, you will be able to download your property tax bill online. Remember to index the tax bills as you will have to provide them if you apply for a secured loan and want to avail loan against property tax benefits.