MCD Property Tax: Is Filling The Property Tax Form Giving You A Headache? Here Are The Terms You Need To Know To Make It A Child's Play

Is it your first time at filing property tax? Chances are, you may be finding the property tax form of the Municipal Corporation of Delhi (MCD) difficult to decipher. Do not worry, you are not alone. If you are struggling to find out the difference between Total Annual Tax and the Net Tax Payable, or perplexed if your home falls in Category A or Category B, we are here to clarify terms.

Here is our list that simplifies the most perplexing terms in the MCD Property Tax form:

Also Read: Easy Steps To Calculate Property Tax in Delhi

Total annual value of the property: Find out the total annual value of the property by doing a simple calculation. The formula is:

Total annual value of the property = Unit Area Value × Age Factor × Use Factor × Structure Factor × Flat factor × Occupancy Factor

Now, let us look at what the various terms in the formula refer to:

• Unit Area Value: The unit area value is calculated in Rs/sq mtr based on the category of your house. If yours is a category A home, the unit area value is 630, in Rs/sq mtr. If yours is a category B home, the unit area value is 500, in Rs/ sq mtr. There are eight categories of residential colonies in Delhi, from A to H. Check out the MCD colony list here.
• Age Factor: The age factor calculation is based on the period of construction of the building. For instance, if your house was constructed after April 1, 2000, the age factor is 1. If the building was constructed anytime between the financial year 1990-1991 and the financial year 1999-2000, the age factor is 0.9. If the building was constructed anytime between the financial year 1980-1981 to the financial year 1989-1990, the age factor is 0.8. Refer to image 1.1 for the detailed list.

 

1.1. Here is the complete list of the multiplicative factors as stipulated by the MCD (Picture credit: The Municipal Corporation Of Delhi)

• Structure Factor: The structure factor calculation is based on the structure of the building. For pucca structures, the structure factor is 1.0, for semi pucca structures, it is 0.7% and for kuchcha structures, it is 0.5%. Pucca homes are made of materials such as burnt bricks, stones, cement concrete, timber, ekra etc., and roof material such as tiles, GCI sheets, asbestos cement sheet, RBC, RCC and timber etc. A kutcha house has walls/or roof made of material such as unburnt bricks, bamboos, mud, grass, reeds, thatch, loosely packed stones, etc. A semi pucca house has fixed walls made up of pucca material, but the roof is made of the material other than those used for pucca house. For more, refer to image 1.1.
• Flat Factor: For small flats, with total covered area lesser than 100 sq mtr, a flat factor of 0.9 will be applied to the Annual Value which is computed.
• Occupancy Factor: If it is a self-occupied flat, the occupancy factor is 1, while it is 2 for a rented flat.

Rate of Tax: The rate of tax is the percentage of tax levied on the total value of your property. If your home is an A or B category residential property, you will pay a property tax of 12%. If your home is a category C, D or E residential property, you will have to pay 11% in tax. If it is F, G or H category, you will have to pay a tax of 7%. For category A to H special non-residential properties, the tax rate is 15%, and for non-residential properties, the tax rate is 15% for category A & B, 12% for category C, D and E, and 10% for category F, G and H.

Total Annual Tax: Total Annual Tax is the figure you reach when you multiply Annual Value to the Rate of Tax. (Total Annual Tax = Annual Value × Rate of Tax)

Net Tax Payable: This is the amount you get when you subtract the rebate applicable to Senior citizens, women, physically challenged persons, ex-servicemen, and owners of small flats and the rebates applicable if the property tax is paid in lump sum on or before June 30 of the financial year from the Total Annual Tax and the Interest for the financial year. (Total Annual Tax – (Rebate applicable to Senior citizens, women, physically challenged persons, ex-servicemen, and owners of small flats) – (Rebates applicable if the property tax is paid in lump sum on or before June 30 of the financial year) + (Interest for the financial year))

Interested in reading more? All You Need To Know About Property Tax