Living in Delhi means that the house owner has to pay property taxes to the Municipal Corporation of Delhi (MCD). This blog attempts to simplify this process, providing a step by step guide when it comes to calculating, making payments, and understanding exclusions and refunds regarding property tax in the city.
What is Property Tax?
Property tax is a tax which is imposed by the local government on owners of properties. He noted that it has become a major income source for funding various services, projects and growth undertakings for the government.
Melvin Who collects Property Tax in Delhi?
Earlier the property tax collection was under the Delhi Municipal Corporation (DMC). However, in 2012, the DMC was split into three different bodies:
Local Laws of Delhi – South Delhi Municipal Corporation (SDMC) – North Delhi Municipal Corporation (NDMC) – East Delhi Municipal Corporation (EDMC)
In English law depending on the location of your property, you are required to pay taxes to the right company.
While answering the question it is required to explain the guidelines on how to calculate property tax.
Property tax in the MCD is determined by the ‘Unit Area System’. The formula is as follows:
Property Tax = AV x RTC
The Annual Value is determined by: Classification System – Unit Area Value – Property Area – Age Factor – Structure Factor – Occupancy Factor
It depends with the type of land; residential, business or industrial and is adjusted annually by the MCD.
What are the Process of Paying Property Tax both Online and Offline?
Delhi gives both online and offline payment methods for property tax:
Online Payment
- A list containing your local city company SDMC, NDMC or EDMC address and its official page should be available.
- Sign up or only type in your information to login for Free.
- You need to find your property information and to achieve that you just need to type in your UPIC or Unique Property Identification Code.
- Intuitively, the percent self-completion field argues that a user should review estimated tax by navigating to the credit/debit card or the net banking tab to continue the payment.
Offline Payment
For offline payments, you can: 1. Go to any of the available 800 ITZ cash stations any where within the city.
- Fill the Property Tax ID or create a new one if you have none.
- Pay the payment through cash, cheque, demand draft, or through credit card.
Exemptions and Rebates
The MCD gives several exclusions and refunds for specific groups, including:
Exemptions: – Churches – Funeral homes – State buildings – Buildings and grounds used for charitable purposes
Rebates:
- Early payment savings
Patients – Old people – Disabled people – Veterans
Penalties for Late Payments
To those clients that delay their payments, they are charged an interest of 1% for every month that they take. Paying as soon as possible is preferable in order not to collect fines.
Conclusion
Knowledge and compliance with your property tax obligations in Delhi are very important towards stewardship of properties. If you strictly adhere to the nursery steps given below and use official information only, you can pay quickly, receive possible bonuses and refunds and, thus, avoid penalties.
Frequently Asked Questions
Q: What is required to register and pay property tax online? A: You will need:
Your Unique Property Identification Code (UPIC)
- Name and contact address
– Username and password (if you are a first time user then you will be required to make an account using the cell number or the email then set a password).
Q: Am I eligible for any rebates; how do I check this? A: Refunds which you can claim vary depending on the home type and individual factors. It would help if you went to your individual company’s website either SDMC, NDMC, or EDMC and look for refund options along with the eligibility criteria.