For the local urban as well as the municipal bodies, property tax remains the main source of revenue generation. The generated revenue is used in upgrading the basic amenities and services within the locality and society. As municipalities of the state shoulder the responsibility of administering the property tax, the property owners of Delhi have to pay the property tax to the Municipal Corporation of Delhi. 

Due to inefficient administration, inadequacies in procedure s, and lack of information, there has been a decline in the property tax base. To avoid such problems, the Municipality body of Delhi decided to come up with the MCD property tax online payment system. The online tax payment system helps in enabling better transparency as well as accountability among the citizens of Delhi. With the introduction of a Public-Private Partnership approach, MCD aims at achieving its objectives. 

While the city of Delhi is divided into eight categories from A to H, depending on the living standards of people, the MCD is divided into East MCD, North MCD, and South MCD. The MCD house tax is levied on all the buildings, also including the vacant land. MCD uses the Unit Area System for the computation of the property tax.

The system is considered to be a function of the construction period, building structure, built-up area, use of property, as well as the location of the property. The computation process remains the same for different types of properties, but the property tax rate is different for residential, commercial, industrial, and rented residential properties.

The Formula for Calculation of MCD Property Tax

MCD uses the modern method of Unit Area System for the calculation of property tax. The formula of MCD house tax online is given below:

Property Tax = Annual Value × Rate of Tax

The Annual value of a particular building can be calculated by:

Annual Value = Unit Area Value × Age Factor × Structure Factor × Flat Factor × Occupancy Factor 

• The Unit Area Value refers to the value of per square meter of the built-up of the property depending on its category.
• The age factor indicates the age of the property, which ranges between 0.5 to 1. Older properties are usually taxed lesser than the newer properties. 
• The structure factor refers to the type of construction, and its value ranges from 0.5 to 1.
• The occupancy factor considers whether the property is rented out or self-occupied.

The annual value of vacant land is calculated using the formula mentioned below:

Annual Value = Unit Area Value × Use Factor × Area of Vacant Land × Occupancy Factor × 0.3

The tax rate differs depending on which category from A to H, the property belongs to. The tax rate is revised and published by the MCD gov on a yearly basis.

The Due Date, Penalty and Rewards of MCD Property Tax 

In case the entire property tax is paid in the first quarter, the taxpayer is eligible to get a rebate of 15% on the total amount. For the senior citizens, physically challenged individuals, ex-servicemen, and women, who have a property with 200 sq. Meters, MCD gives a rebate of 30%. A 20% rebate is given to the owners of group hosing flats in case the tax is paid before or on 30th June of the financial year. All these rebates are applicable when the use factor is ‘Self-Occupied,’ and the occupancy factor is ‘Residential.’ 

In case of delayed payments, MCD charges a penalty interest @1% for every delayed month.

Steps included in the Payment of MCD Property Tax

The MCD property tax can be paid online as well as offline. The steps included in both methods are:

• Offline Payment

You can make the offline payment of property tax at any ITZ cash counters at Delhi. You will instantly receive the receipt of payment containing the property id number. 

• Online Payment

For online payment, you need to log in to the official web portal of MCD. You need to choose whether the property tax is to be paid for East MCD, South MCD, or North MCD. Agree with the terms and conditions and then enter the property ID and submit. Then you can pay the tax using your debit or credit card and generate the challan that is saved for official purposes in the future.

The complete step by step Procedure to File the MCD Property Tax Online

The step by step procedure of filing MCD property tax online includes:

Step 1: Log on to the MCD Website

In order to file the MCD tax online, the taxpayers have first to choose the appropriate municipal corporation.

Step 2: Select the Online Filing Option

After you have logged in to the official website and selected your municipal corporation, go to “property tax” and click on “Online Filing of Property Tax Returns.” Read all the terms and conditions carefully and click accept. Then click on “Click here to file property tax.”

Step 3: Enter the Property Details

Enter your property ID. In case you have not been allotted a property ID, select “Click here to file your return if property ID has not been allotted earlier.”

Step 4: Update the Property Details

a) Fill the Ownership Details

In the ownership details, you have to give the ledger folio number and select the type of property as well as the type of ownership.

b) Fill the Property Details

Here, you have to enter the details about your housing colony, your complete address, and the property number.

c) Provide Contact Details

In this section, provide your phone number and other contact details along with your bank details.

d) Enter Building Details and Calculation of Tax

Provide all the essential details of your building, including covered area, floor number, use, occupancy, structure, year of construction, and exemption category. 

e) Previous Arrears

This section is for individuals who have any previous arrears. 

f) Accept & Submit

After filling all the necessary details, accept the declaration, and finally submit the online form. 

Following the steps will help in successful MCD house tax online payment.