Property tax is the tax that is levied on every property owner and collecting it is usually the state municipality’s responsibility. Each state government in India has control over the property tax of their respective state and delegates municipalities to be responsible for computing, charging, and deciding on the different modes of payment.
The local body provides cleanliness, water supply, maintenance of local roads, drainage and other facilities in the area. It is important to pay your house/property taxes on time because the revenue that Municipal institutions provide to the people comes from property tax. It is a major source of revenue for local bodies. If you do not pay property tax, then the local body may refuse to give you water connection and other facilities. Also, they can take legal action to get the outstanding amount.
For instance, the Municipal Corporation of Delhi (MCD) imposes property tax in Delhi against all property, vacant land included. It also has a provision that allows you to pay property tax online, making the process much simpler.
The MCD is divided into 3 main regions, North, South and East MCD, with the city being further divided into 8 categories. These categories range from A to H and the categorisation is based on the value of properties within the colonies.
It is important to note that each category has a different tax rate and knowing this can come in handy if you wish to calculate house tax in Delhi manually. Property tax is calculated from the recent property valuation of the entity. Only property owners have to pay property tax. If you are a tenant then there is no need to worry. Property tax receipts play an important role in proving ownership of property in case of property dispute. As a result, when you buy a property, the property title should be updated in the municipal records.
To learn all about property tax in Delhi and how to pay property tax online, read on.
Steps to pay property tax online
Learning how to pay property tax online is easy and requires minimal effort. First, you will be required to get the unique property ID number assigned to your property. With that number on hand, here are the steps to follow.
- Log on to the official MCD website
- Choose the right region (North/ South/ East)
- Check the box stating you’ve read and agree to the terms and conditions
- Select ‘Click here to file property tax 2020-21’
- Enter the property ID accurately
- Verify the property details
- Input the required information to compute the tax payable for the assessment period
- Choose the payment option and pay property tax online
- Click the ‘Generate Challan’ link to get a receipt
- Print the receipt for evidence purposes
Alternatively, if you choose to go the traditional route and pay property tax in Delhi offline, you can do so at any ITZ cash counter. Once completed, ensure to collect the receipt, and verify the property ID on it.
Deadline and exemptions for property tax Delhi
The deadline to pay property tax in a lump sum in Delhi is 30 June every year. Doing so gives you a 15% rebate. Property tax may alternatively be paid in quarterly instalments, but delays will attract a penalty. For every month that the tax is unpaid, you get charged 1% penal interest on the amount. However, not everyone is required to pay this tax as there are exemptions for cases such as:
- All agricultural land or buildings, except dwelling houses
- Any property martyred on paramilitary or police duty
- Any property used by a war widow for self-residence with no portion let out
- Any property used for public burial or worship or as cremation grounds