Property tax is a charge that a home buyer has to pay every year. The amount of the tax to be paid may vary according to locations. Here we will provide you with a guide to pay the property tax in NCR:
Owners have to pay the taxes to the government, which finally goes to the Municipal Corporation of Delhi (MCD). Apart from the location, the rate of the property tax also depends on the area of the plot which is measured in square meters
Ways to calculate the property tax of residential property:
The municipal corporation uses a system known as the “unit area system” for the entire city. The calculation according to the system is done as follows:
Property tax= rate of tax x annual value
Annual value= age factor x unit area of the property x unit area value sq meter x occupancy factor x structure factor x use factor
The rate of tax= MCD publishes the rate of tax every year. The tax rate changes every day.
Unit area value-This refers to as the built-up area of the property. It also varies in different categories.
Unit area of the property- The built-up area excluding the carpet is considered for this. This is the area which is meant for the computation.
Age factor-The age refers to the time period since which the property has been built. This determines if the property is a new property or an old property. The value is between 0.5-1.0.
Use factor-The residential and the non-residential build-ups have different tax rates.
Structure-The constructions under the RCC are taxed higher than the constructions under the lower value.
Occupancy-The rented properties are taxed higher than the property that is owned by the legal owners.
Rebates available on the property tax
There are certain rebates that are available on the property tax given by the MCD. These are:
1)If you wish to the tax in single instalment then you can receive a rebate of 15% on your total amount of tax.
2)You can avail 10% rebate on the annual value on DDA/CGHS, with an area of 100sq. meters.
3)Women, senior citizens, and physically challenged can also avail 30% off rebate on the property.
Payment of your property tax
The buyers can easily pay the property tax online on the website of the MCD, debit card or credit card. On the website, you have various links where you can pay the tax and those are:
South Delhi municipal corporation (SDMC)
North Delhi municipal corporation (NDMC)
East Delhi municipal corporation (EDMC)
The localities, which are under respective locations have the details under the respective municipal corporations’ website.
If the payment is delayed, then you are liable to pay 1% on the amount that is not paid. After the payment, make sure that your account on the website is updated and no records show that your amount is outstanding. If you have any other problems get them sorted as soon as possible.