SDMC Notification- Extension of the last date to file Property Tax in Delhi!

If you are a resident of Delhi and probably tensed to miss the deadline for filing the return for property tax, the South Delhi Municipal Corporation (SDMC) has extended the due date to submit the property tax returns till July 31 along with a rebate sum up to 15%.

Earlier, the North and East Delhi Municipal Corporations announced the same having the same effect of extending the last date of payment with rebate to July 31 instead of June 30 for the year 2020. In the wake of hardships created by the circumstances due to the global pandemic of COVID-19, the municipal corporations were receiving multiple requests for the issues faced by taxpayers all over Delhi out of which, according to estimate 1.25 crores residents had already made payments on the online portal. Thus, an appropriate step was much required for remedying the situation.

To know the impact of the relief better, let’s know a little about property taxes in Delhi.

What is Property Tax in Delhi? Who is required to pay taxes on Property?

 In the state of Delhi, taxes on the property are one of the chief sources of revenue of urban local bodies/local municipal authorities to fulfill and maintain the basic civic services of the city. Accordingly, the administration of levying and collection of taxes has been delegated to the municipal corporations in the state and the property owners in the state are liable to property tax to the municipal body called the Municipal Corporation of Delhi or MCD.

 The MCD levies a property tax on all the buildings including vacant land. Through any of the three methods of computing property tax (i.e., Annual Rental Value, Capital Value System, and Unit Area System).

Though the method of assessing the property tax is the same for all kinds of property, the rate of tax varies depending on the type of property i.e. residential, rented residential, commercial, industrial properties.

The formula for MCD property tax computation-

 For the calculation of property tax,  it is assessed by multiplying the annual value of the property with the rate of taxes.

Annual Value means= Unit area value per sq. meter X covered area of property x Age factor X Use factor x Structure factor X Occupancy factor X Flat factor

When to pay the property taxes?  

The entire sum of property taxes should be paid once in a year as a lump sum amount before the first quarter (June 30) is given a rebate of 15% on total tax. And, any delay in the payment of property tax will attract penal interest @ 1% for every month of delay.

How to pay Property Taxes?

Tax payments may be made either through online or offline mode.

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

The online portal also provides details of property tax arrears and penalties, in addition to calculating late fees and interest amounts.

Offline Payment- Taxes on a property could also be made through physical submission at any of the ITZ cash counters.  After which an instant receipt is provided evidencing the receipt of payment that also contains the Property tax ID.

List of Exemption-

i. The building or vacant land exclusively occupied and used for public worship, public burial or cremation grounds, heritage lands or buildings or occupied and used by any society or body for the charitable purpose

ii.  Agricultural land and building except for dwelling houses

iii.  Land or building possessed by the corporation for which the property tax is levied primarily on such corporation

iv.  Property owned by war widow /Gallantry Award winner being permanently used for self residence and no portion is let out

v.  Property martyred on police/paramilitary duty

vi.  Owned by South MCD employee handicap (fully) on duty

vii. Award-winning in international games.

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