Calculation of Property Tax in Delhi

Every homeowner is bound to pay property tax every year and it varies according to the locations. New Projects in Kolkata are the best for investments because it has no obstructions with payment of tax. Residents of Delhi who are the homeowners should pay property tax every year to Municipal Corporation of Delhi and depending on the suburb people need to pay property tax as it may be paid to South Delhi Municipal Corporation, North Delhi Municipal Corporation, or East Delhi Municipal Corporation. Relying on the values of the properties, Delhi is categorized in A to H. the amount of property tax varies according to the divisions of the areas in eight categories which is calculated as the value per sq.mt of the particular property.

How to Calculate Property Tax?

The process of the Unit Area System is followed by the Municipal Corporation of Delhi to calculate the property tax. The formula is given below-

Property tax = Annual value * Rate of tax Where Annual value = Unit area value per sq.mt * Unit area of property *Age factor * Use factor * Structure factor * Occupancy factor.

Rate of tax- MCD publishes the tax rates for A to H category properties.

Unit area value- this is mentioned value of built-up area per sq.mt where the value of unit per sq.mt differs in A to H categories.

Unit area of the property- the build-up area in sq.mt is considered for computation.

Age factor- the tax differs in case of new properties and old properties whose range is 0.1 to 1.0.

Use factor- the tax for non-residential property is high than a residential property and its value is 1(residential unit).

Structure factor- the tax for low valued constructions is comparatively lower than RCC constructions.

Occupancy factor- self O occupied property taxes are lower than rented properties.

Refunds on property tax

Delhi Municipality offers some refunds on payments of tax-

1. An owner can draw a partial refund of 15 % on paying a huge amount for a single installment in the initial quarter year
2. The DDA/CGHS flats can get a refund of 10% on the annual value up to 100sq.mt.
3. Senior citizens, women, physically challenged people can get a refund of up to 30% for one property.

Paying property tax online

By using the credit or debit card, internet banking owners can pay the property tax on an online thorough MCD website. To encourage the payment of property tax, Delhi Municipal took the initiative to make the website for emerging advance technology. On the website, there are 3 links that are to be chosen according to the preferred area of municipal corporation- South Delhi Municipal Corporation (SDMC) North Delhi Municipal Corporation (NDMC) East Delhi Municipal Corporation (EDMC).

Owners should go through and study terms and conditions given on the website.

In case of delay in the payment, MCD impose 1% /month on the due amount.

Updated information for property taxpayers

Property Identification Code Cards will be given to East Delhi property owners by East Delhi Municipal Corporation on January 3, 2020. All the details of the property owners will be updated on UPIC. This card holds certain numbers of which the first three digits refer to the ward number, the next four digits refer to the colony and the rest of the numbers denote the particular properties. There are 795 colonies in 64 wards that come under EDMC and within which 32 wards are issued successfully for UPIC.

EDMC raises professional tax

There is a rise in property tax up to 3% for a few colonies which are imposed by EDMC. An increase of Rs.100/month and Rs.200/month for professional tax has been imposed by the commissioner of EDMC, Dr. Dilraj Kaur for those whose income is more than 5lakh/year and 10lakh/year respectively.

Rakesh Misra is a real estate blogger who blogs about Kolkata's realty market and also gives advice on buying residential and commercial apartment or flats in India.