Every property owner in Delhi is liable to pay tax on their residential, industrial, and commercial property. MCD decides the applicable property tax amount, which depends on several factors. For instance, the rate of tax varies for residential, commercial, and industrial properties.
The regulating body is also responsible to set the deadline for tax payment. Not paying or delaying such taxes can invite penalties.
- Delay in tax payment attracts a fine charged at 1% every month on the payable tax amount.
This could significantly shoot up the overall liability of property owners and can also subject them to legal formalities. To avoid this, property owners must pay their taxes on time. Also, they should find out the accurate process to pay property tax online.
Steps to pay property tax in Delhi
Follow these steps to pay property tax online in Delhi –
- Regular property taxpayer
- Visit the official website of the Municipality Corporation of Delhi.
- Click on the relevant link from EDMC, NDMC, and SDMC options.
- Once redirected to a new page, browse through its online services and click on ‘Property Tax’ option.
- Tick the ‘Terms and Conditions’ field and then select ‘Click here to file property tax’.
- Choose either the property ID for the tax paid in 2019-2020 or any other property ID.
- Enter property ID and details of a property to compute applicable taxes.
- Click on the ‘Submit’ button.
- Choose a suitable payment mode from net banking, NEFT, UPI, or IMPS to initiate payment.
- Generate challan.
If taxpayers want to take out a loan against property from a leading HFC, they should keep the ITR receipt safely.
It’s one of the items in the list of documents needed to apply for a loan against property.
- First-time property taxpayer
- Click on ‘First-time online tax payer’.
- Tap through ‘Click here if property ID has not been allocated earlier’.
- Enter property details and check the ‘I have read and I accept the declaration made above’ box.
- Click on ‘Submit’ to receive the ID number on the registered mobile number.
With the help of the credentials, log in to the portal and pay the applicable taxes.
How to check property tax payment status?
Property owners can check outstanding and current property tax bills on the official website of the Municipal Corporation of Delhi. They need to follow these basic steps to initiate the process –
- Go to the official portal and select the relevant division.
- Click on ‘Property Tax’ and then choose the ‘View old PTR’ option.
- Enter property ID and relevant financial year.
The tax details will appear after these steps are covered. Subsequently, the bill will be generated, which shall be kept safely as proof of homeownership.
However, such documents may not be necessary with pre-approved offers extended by reputed financial institutions. It minimises the time required to apply for credit products like a loan against property and home loans. Individuals can check their pre-approved offers with a few basic details like name and phone number.
How is property tax calculated?
The regulatory body applies the unit area system to compute property tax in Delhi. The formula they use is –
Property tax = Annual value x unit area value/sq. m. x unit area of the property in question x use factor x age factor x occupancy factor and structure factor
Note that the multiplicative factor and tax rate varies across properties types.
Is there any rebate on property tax in Delhi?
The Municipal corporation of Delhi extends rebates on selective tax payments –
- Senior citizens, physically challenged, and women are entitled to receive a rebate of up to 30% on only one property.
- When a property owner pays property tax as a lump sum and in a single instalment in Q1 of a year, he/she will be entitled to receive a 15% rebate on the payable tax amount.
- CGHS/DDA flats owners whose property is up to 100 square meters are entitled to a 10% rebate on the annual value
Note that self-occupied residential properties are eligible for rebates. Also, joint owners qualify for the concession.
Once individuals have gathered ample information about these details, they can pay their property tax online in Delhi without any confusion.
Other than rebates and concessions on property tax, individuals who had availed a loan against property to purchase the property in question can avail tax benefits on their LAP as well to ensure further savings.
While at it, individuals may also consider how to use loan against property to maximize the accompanying benefits. For instance, they can invest the sum in various investment channels to mobilise additional passive income sources.
Additional Read: Clear Reasons Everyone Applies For Personal Loans