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Property Tax in Delhi: How is Property Tax Calculated?

Property tax in Delhi, governed by the Municipal Corporation of Delhi (MCD), follows the Unit Area System (UAS) for calculation. The tax amount is determined by factors like the property’s location, size, usage, age, and occupancy type. Below is an updated, detailed guide to understanding property tax calculation, rates, rebates, and exemptions for residential and commercial properties in Delhi.

East Delhi Municipal Corporation (EDMC), North Delhi Municipal Corporation (NDMC) and South Delhi Municipal Corporation (SDMC) was re-unified into a single entity on 22 May, 2022 as Municipal Corporation of Delhi. That means this article is valid for property tax in all parts of Delhi, including South Delhi, North Delhi, East Delhi, West Delhi and South-West Delhi.

Key Factors for Delhi Property Tax (FY 2024-25)

The following factors influence the computation of property tax in Delhi:

  1. Rate of Tax
    • MCD revises tax rates annually for residential, commercial, and industrial properties.
    • Tax rates differ based on the property category (A to H).
  2. Unit Area Value (UAV)
    • Assigned per square meter of built-up area, varying by category.
  3. Unit Area of Property
    • Calculated based on built-up area, excluding carpet area (in square meter).
  4. Age Factor
    • Properties are taxed lower as they age:
      • Built before 1960: 0.5
      • 1960-1969: 0.6
      • 1970-1979: 0.7
      • 1980-1989: 0.8
      • 1990-1999: 0.9
      • 2000 onwards: 1.0
  5. Use Factor
    • Reflects property usage. Residential properties have a factor of 1, while others (eg: commercial) have higher values.
  6. Structure Factor
    • RCC constructions have a factor of 1, while low-value constructions (eg: kuchha) have a factor of 0.5.
  7. Occupancy Factor
    • Self-occupied: 1.0
    • Rented: 2.0
    • Vacant: 0.6

Delhi Property Tax Calculation Formula

Property Tax = Annual Value (AV) × Tax Rate
Annual Value (AV) = Unit Area Value × Unit Area × Age Factor × Use Factor × Structure Factor × Occupancy Factor

Property Tax Rates by Category

CategoryResidentialNon-Residential (less than 1500 Sq Ft covered area)Non-Residential (above 1500 Sq Ft covered area)IndustrialFarmhouse
A12%20%20%15%20%
B12%20%20%15%20%
C11%20%20%12%20%
D11%20%20%12%20%
E11%20%20%12%20%
F7%15%20%10%20%
G7%15%20%10%20%
H7%15%20%10%20%

Unit Area Value (UAV)

CategoryUAV (₹ per sq. m.)
A₹630
B₹500
C₹400
D₹320
E₹270
F₹230
G₹200
H₹100

Use Factor

Property TypeUse Factor
Residential property1
Non-residential public purpose1
Non-residential public utility2
Industry, entertainment, clubs3
Restaurants, hotels (up to 2-star)4
Hotels (3-star and above), towers10

Structure Factor

Construction TypeStructure Factor
Pucca (RCC Building)1.0
Semi-Pucca1.0
Kuchha0.5

Age Factor

Year of ConstructionAge Factor
Before 19600.5
1960–19690.6
1970–19790.7
1980–19890.8
1990–19990.9
2000 onwards1.0

Occupancy Factor

Occupancy TypeOccupancy Factor
Self-occupied1.0
Rented2.0
Vacant0.6

The MCD categorization of major colonies of Delhi for property tax calculations is as follows:

Property CategoryMain Colonies
AAnand Niketan,  Bhikaji Cama place, Friends Colony, Hudco Place, I.P Estate (Press area), Kalindi Colony, Lodhi Road Institutional Area, Maharani Bagh, Mayfair Garden, Nehru Place, New Friends Colony, Panchshila Park, Pragati Maidan, Press Area, Pushpa Bhawan, Shanti Niketan, Siri Fort Institutional Area, Sunder Nagar, Vasant Vihar, West End
BAnand Lok, Andrews Ganj, Balaji Estate, Chirag Enclave, Defence Colony, Greater Kailash I II III IV, Green Park, Green Park Extn, Gulmohar Park, Hamdard Nagar, Hauz Khas, IIT Area, INA Colony, JNU Campus Area, Kailash Colony, Kilokri, Lodhi Colony, Nauroji Nagar, Navjivan Vihar, Neeti Bagh, Nehru Enclave, Nizamuddin East, Panchsheel Enclave, Qutab Inst Area, Safdarjang Enclave, Sarvapriya Vihar, Sarvodaya Enclave, South Ext, South Moti Bagh, Sukhdev Vihar, Vasant Enclave,
CAlaknanda, Anupam Apartment, Aruna Asif Ali Road, Bhawani Kunj, Central Market Lajpat Nagar, Chittaranjan Park, East of Kailash, Escort Area, Firoz Shah Kotla Stadium, Kailash Hills, Kailash Kunj, Lajpat Nagar I II III IV, Malviya Nagar, Munrika Vihar, Nangal Dewat, Panchsheel Vihar, Punjabi Bagh West, Som Vihar, Vasant Kunj  
DAjanta Park, Anand Vihar, Amar Colony, Anupam Gardens, Bali Nagar, Chander Nagar, Daryaganj, Dwarka, Gagan Vihar, Hudson Line, Janakpuri, Jangpura A, Jangpura Extension, Jasola Vihar, Kalkaji, Karol Bagh, Kirti Nagar, Mayur Vihar, Mohan Coop Industroa; Estate, New Rajinder Nagar, Nanakpura, Okhla Industrial Estate, Old Rajinder Nagar, Pushp Vihar,Raja Garden, Rajouri Garden   
ECariappa Marg, Chandni Chowk, IAAI Colony, Indian Air Lines Colony, Khirki Ex, Madhuban Enclave, Mahavir Nagar, Pahar Ganj, Pandav Naga, Pant Nagar, Press Colony, Rohini, Shahpur Jat, Tilak Nagar,
FAnand Parbat, Arjun Nagar, Daya Basti, Dilshad Garden, Freedom Fighter Enclave,  Ganesh Nagar, Govindpuri, Hari Nagar, Madhu Vihar, Majnu Ka Tila, Uttam Nagar, Okhla,
GAmbedkar Nagar Jahangirpuri, Amber Vihar, Badarpur, Bijwasan, Dabri Extension, Dakshinpuri, Dashrathpuri, Hari Nagar Extension, Vivek Vihar Phase I, Tagore Garden
HMaidan Garhi, Mandi-Chhatarpur, Sultanpur Majra,

Rebates on Property Tax in Delhi

MCD provides several rebates to property owners based on the type of property and the owner’s status. These rebates are aimed at reducing the financial burden for specific groups:

CategoryRebate
DDA/CGHS flats10% of the annual value, up to 100 sq metres of covered/built-up area.
Group Housing Flats20% (if paid by 30th June of the financial year).
Senior Citizens30% (on one property only and up to 100 sq metres).
Women30% (on one property only and up to 100 sq metres).
Physically-challenged Individuals30% (on one property only and up to 100 sq metres).
Ex-Servicemen30% (on one property only and up to 100 sq metres).

Additional Lump Sum Rebate

If property tax is paid in a single installment during the first quarter of the financial year (on or before 30 June), a 10% rebate on the total tax amount is offered. No rebate allowed if the payment is made on a quarterly basis.

Conditions for Availing Rebates

  1. Property Type: Rebates are offered only for self-occupied residential properties.
  2. Area Limit: The rebate applies to properties up to:
    • 100 sqm for DDA/CGHS flats.
    • 200 sqm for other eligible categories.
  3. Joint Ownership: For jointly owned properties, the rebate is proportional to the share of the owner(s) eligible for the rebate.

Exemptions from Property Tax in Delhi

Certain properties are completely exempt from paying property tax:

  1. Charitable Uses: Properties used for worship, heritage sites, burial grounds, or charitable purposes.
  2. Gallantry Award Winners and War Widows: Properties occupied for self-residence.
  3. Martyred Personnel: Properties of individuals who lost their lives during police or paramilitary duties.
  4. Sports Achievements: Properties owned by sportspersons who have won international awards.
  5. Agricultural Land: Except for dwelling houses on agricultural land.
  6. Handicapped Employees: Properties owned by fully handicapped South MCD employees.

How to Calculate Property Tax for House in Delhi?

Let’s see how to calculate the property tax for a residential property.

Assume that the residential property is a pucca structure house in Category B zone, built in 1965, with built-up area of 100 square meter. The house is occupied by the owner.

Property Details

  • Category: B
  • Built-Up Area: 100 sq. m.
  • UAV: ₹500 per sq. m.
  • Age Factor: 0.6
  • Use Factor: 1 (Residential)
  • Structure Factor: 1.0
  • Occupancy Factor: 1.0

Annual Value (AV) of the Property

Annual Value = Unit Area Value × Unit Area × Age Factor × Use Factor × Structure Factor × Occupancy Factor

AV = 500×100×0.6×1.0×1.0×1.0 = ₹30,000

Applicable Tax Rate = 12% (Category B Residential)

Property Tax = ₹30,000 × 12% = ₹3,600

How to Calculate Property Tax for Commercial Property in Delhi?

Now, let’s try to calculate the property tax for a retail shop in INA Colony of South Delhi. Let’s assume that the shop has a built-up area of 100 square meter, and is a pucca / RCC structure built in 1985. The shop is rented out.

Property Details

  • Category: B
  • Built-Up Area: 100 sq. m.
  • UAV: ₹500 per sq. m.
  • Age Factor: 0.8
  • Use Factor: 3 (Commercial shop/entertainment)
  • Structure Factor: 1.0
  • Occupancy Factor: 2.0 (Rented)

Annual Value = Unit Area Value × Unit Area × Age Factor × Use Factor × Structure Factor × Occupancy Factor

AV = 500×100×0.8×3×1.0×2.0=₹192,000

Applicable Tax Rate = 20% (Category B Commercial)

Property Tax = ₹192,000 × 20% = ₹38,400

(Note: The above property tax calculation is based on the best information and understanding of property tax applicable in Delhi in 2024. However, we cannot guarantee accuracy of the information. This should not be construed as legal or professional advice. The exact rates and rules may be revised and notified every year by MCD. Kindly verify the information and the applicable property tax for your property from authoritative sources.)

Source: Schedule for levy of Muncipal Taxes, Rates and Cesses for FY 2024-2025


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