How to pay MCD property tax in Delhi by 30 June? Step-by-step guide

If you fail to make payment within the due date, a penalty of 1% on the unpaid amount is levied each month starting from the first day after the due date

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Residents of Delhi are required to pay property tax to the Municipal Corporation of Delhi (MCD) to fund essential civic services. Entire property tax has to paid in one lump sum before the first quarter or 30th June. Any delay in the payment of property tax will attract penal interest at 1% for every month of delay. This guide provides an overview of the property tax system, including calculation methods, payment options, exemptions, and the mandatory geo-tagging process.​

 

 How to Calculate MCD Property Tax

The property tax is calculated using the following formula, according to ClearTax:

Property Tax = Annual Value × Tax Rate

 

Where:

Annual Value is determined by:

• Unit Area Value per sq meter (set by MCD based on property classification and location
• Covered Area (total floor area, including walls, verandahs, and balconies)​
• Age Factor (0.5 to 1, based on property age)​
• Use Factor (assigned by MCD based on property usage)​
• Structure Factor (type of construction, e.g., RCC or normal)​
• Occupancy Factor (self-occupied or rented)​

 

Tax Rate varies by property category:

 

Category A, B, C, D, E: 12% for residential, 20% for commercial​

Category F, G, H: 7% for residential, 20% for commercial​

 

Rates of property tax for different categories of property are as under: 

Source for chart: Cleartax

 

Payment Methods

As of July 1, 2024, MCD no longer accepts cheque payments for property tax due to issues with dishonoured cheques. Residents must use digital payment methods, including:​

• UPI​
• Digital wallets​
• Demand Drafts
• Pay orders
• Online payment gateways

 

Steps For Payment Of MCD Property Tax as explained by ClearTax:

Online Payment

Payment online can be made using the property ID allotted to the property which can be obtained from the previous property tax paid receipt.

 

Steps:

• Visit the website and scroll down to see ‘online services’ tab.
• Select Property Tax and then Login by entering your registered email id. If you are a new user, then sign up before proceeding further.
• Enter either property ID and click on ‘Submit’.
• In case you do not have a property ID allotted, click on ‘Click here to file your return if property ID has not been allotted earlier’
• You will be directed to a page containing property ownership details
• Enter the property details required and automatically compute tax and click on submit
• Pay tax either by using a credit/debit card or net banking
• Click on ‘generate challan’ and the official challan will be displayed
• The online portal also provides details of property tax arrears and penalties, in addition to calculating late fees and interest amounts.

 

Offline Payment

Property tax can be paid offline at any of the ITZ cash counters in Delhi. After the payment, an instant receipt containing the property tax ID is issued.

 

Steps For Payment Of MCD Property Tax via an APP.

The Municipal Corporation of Delhi has launched an app for easy payment of property taxes.

You can refer to the following steps to log in to the app and opt for the tax payments easily:

 

• Login
• Download the MCD app from Play Store and then register using your mobile number and email address.
• Register Property Information
• Select the UPIC( Unique Payment Identification Option) and choose ‘Pay Tax’ option. Furthermore, select the financial years and click on ‘Submit’.
• Pay Tax
• Determine the tax amount and select one of the options provided to proceed with the digital payment.
• Download Receipt
• Download the tax payment receipt to your device and keep it carefully for future reference.

 

MCD Property Tax Receipt Download

Downloading the MCD property tax receipt involves a simple process.  Go through the following steps for MCD property tax receipt download:

 

• Visit the official website of the Municipal Corporation of Delhi.
• Log in to your MCD account by entering your registered mobile number.
• Click on the “Generate OTP” option and the OTP will be shared on your registered mobile and email ID.
• Enter the OTP and select the “Login” option.
• Select the part of Delhi where your property is situated for which you wish to pay the tax. Choose the right option among South Delhi Municipal Corporation (SDMC), North Delhi Municipal Corporation (NDMC), West Delhi Municipal Corporation (WDMC) and East Delhi Municipal Corporation (EDMC).
• Choose your property type (commercial or residential).
• Enter your property ID or address.
• Preview the details you entered and click on “Submit”.
• The website shall display the MCD property tax receipt for the selected financial year. Verify the details given on the receipt and navigate to the "Download" option.
• Download the receipt and print it to have a hard copy for any official purposes.​