Calculating MCD Property Tax and Payment for 2021-22

Property tax or house tax is an amount that property owners have to pay to the local government or municipal corporations, which these entities will use to provide civic amenities. This rule is applicable across states, UTs and cities. Subsequently, property owners of the Union Territory of Delhi are liable to pay this tax to the MCD (Municipal Corporation of Delhi). Hence, they must know the MCD House tax calculation as well as the payment process.

Process to Calculate MCD Property Tax

The Municipal Corporation of Delhi follows the ‘Unit Area System’ for calculating house tax. Below is mentioned the formula,

Property tax = Annual value x rate of tax

Here, 

Annual Value = Unit area value per square meter x age factor x covered area of a property x structure factor x flat factor x use factor x occupancy factor.

• The unit area refers to the built-up area of a property,
• Unit area value per square meter refers to the value of a property per square meter of its built-up area,
• The occupancy factor points to whether a property is self-occupied or rented out,
• Age factor refers to the age of a property,
• Structure factor means whether a building has RCC construction or low-value construction,
• Use factor refers to whether a building is used for residential or commercial purposes. 

Rate of tax = Rate of tax is the applicable tax rate by the Municipal Corporation of Delhi. The respective authority updates these property tax rates every year and publishes the same on the website. 

Payment Process of House Tax in Delhi

Individuals can pay house tax in Delhi for 2021-22 in both online and offline methods. Both these are discussed separately,

• Online payment procedure of MCD house tax

Step 1: Visit the official website of the Municipal Corporation of Delhi and select NDMC or SDMC, or EDMC as per the property location. 

Step 2: Now individuals will be redirected to a new webpage. Click on ‘Sign up and complete the process. One can log in to the MCD portal with a registered mobile number.

Step 3: After logging in, individuals can pay house tax. For this, they have to register their property by using UPIC (Unique Property ID code). 

Here, individuals can see three options, ‘Search property on UPIC’, ‘Register new property for tax payment’, and ‘Apply for new UPIC’. Those who have UPIC can view details of their property by clicking on ‘Search property on UPIC’. 

Otherwise, they can click on the second or third option to register property and apply for a new UPIC accordingly.

Step 4: Individuals who are searching with UPIC will find all property details with the colony, ward, and property ID. Here, they have to identify the property for which they are paying house tax. 

Step 5: Next, they have to click on ‘Actions’ button available beside each property and click on

‘Use this property to pay tax’.

Step 6: At this stage, property owners of Delhi can calculate house tax amounts by selecting property details and pay tax via credit card, debit card or net banking.

Step 7: After a successful payment, individuals have to save or download the acknowledgement slip for future reference.    

Collecting house tax receipts is essential as these documents help individuals avail loans against property. House tax is one of the important documents needed to apply for a loan against property.

Individuals can take a loan against property to cover a wide range of larger expenses. This includes funding a child’s education, marriage or consolidating existing debts.   

There are several financial institutions that offer high-value loans against property.

These financial institutions also provide pre-approved offers that ease the loan availing experience. These offers are also applicable to other financial products such as home loans. Individuals can check their pre-approved offers by entering names and contact details.

With a comprehensive knowledge of the MCD house tax calculation and payment process, property owners of Delhi can complete these activities without any hassle.