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What Is Property Tax?

If you are planning to buy or have already purchased a property or land, it is important to know that a property attracts a tax, which is levied by the local governing body/municipal corporation. The amount paid by the property owner on the value of the owned property to the local governing body is called the property tax . The property tax amount is a source of revenue for the local governing body, which uses the amount to fund various improvement projects, such as water and sewer work, road improvement projects, law enforcement, and providing other services that benefit the community.

Property tax is just like electricity or water tax, except it is generally paid once a year. The tax paid on a house is called house tax. Individuals pay house tax on a home that is in their name. On the other hand, individuals pay property tax on both commercial as well as industrial establishments.

What Is North Delhi Municipal Corporation Property Tax?

The North Delhi Municipal Corporation property tax is an amount collected by the North Delhi Municipal corporation(NDMC) based on the value of the property/land owned by any individual or an entity. The NDMC property tax/NDMC house tax rate varies depending on the type of property i.e., residential/commercial/industrial.

The property tax is a mandatory tax that needs to be paid in any situation, whether the property is self-occupied or let/sub-let. One must pay this tax on co-owned properties as well. The NDMC property tax can be paid online as well as offline.

How to Pay NDMC Property Tax Online?

NDMC allows property owners to pay NDMC property tax online using their handheld or laptop devices from any part of the world. The payment can be made using the property ID and registered mobile number to receive an OTP. This OTP then gives one access to their property tax dues and the same can be paid online

Calculation of NDMC Property Tax

The NDMC property tax calculation is based on the value of the property and uses the unit area system to calculate the tax amount. The formula used for calculating the tax is:

Property Tax = Annual value * Rate of tax

In the above formula,

Annual value = Unit area value per sq. meter * Age factor * Unit area of property * Structure factor * Use factor * Occupancy factor

For vacant lands, the annual value is calculated using the formula:

Annual value = Unit area value per sq. meter * Use factor * Area of vacant land * Occupancy factor * 0.3

Here,

  • The unit area value per square meter applicable in a particular area is decided by the NDMC.
  • The age factor is based on the age of the property. New properties attract higher taxes than older ones.
  • The use factor is based on the usage of the property and assigned by the municipal corporation.
  • The structure factor depends on the type of construction of the property.
  • The occupancy factor depends on whether a property is rented out or self-occupied.
  • The rate of tax varies for different property types and categories and is defined by the governing body.

NDMC Property Tax Registration

To pay the North Delhi Municipal corporation Property tax online, one must register on the portal for easy payment of the property tax. The steps to register and pay property tax NDMC online are:

  • Log in to the official website of the NDMC.
  • Once you are logged in, select the option of online services.
  • Under the online service categories, select the tab ‘property tax’.
  • Select the option ‘citizen login’ for paying the NDMC house tax online. Otherwise, select ‘manual payment search’ to do the payment manually. In this case, you will need to check online the status of the payment receipt.
  • After this, you will be redirected to another page that will ask you to log in to your account.
  • If you already have a registered account online, then you will have to log in using your registered mobile number and the OTP received on the registered number.
  • First-time users should read the instructions provided on the page and go to the ‘NEW User’ sign up tab and fill in the required essential details.

The online property tax registration portal also helps to keep a record of your previous tax payments and dues and can also help in raising any grievances online related to your property tax.

List of North Delhi Municipal Corporation Areas

The NDMC area list consists of 6 zones. Below are the names of the NDMC zones:

  • City-SP Zone
  • Civil Lines
  • Karol Bagh.
  • Narela
  • Rohini
  • Keshav Puram

Details of NDMC Property Tax Due Date & Rebate

The North Delhi Municipal Corporation property tax has to be paid annually for properties owned and located in North Delhi. If the property tax is paid in full before the first quarter of the year, then an individual can get a rebate of 15% on the total tax amount. However, one must pay the NDMC property tax in a lump sum by 30th June of the calendar year to be able to avail of this rebate.

A rebate of 30% is offered to senior citizens, women, and physically challenged, ex-servicemen. A rebate of 20% is provided to group housing flats, if tax is paid by 30th June. A rebate of 10% is given to DDA/CGHS residential measuring up to 100 sq. meters of covered/build-up area.

One should also be aware that non-payment of the property tax by the due date attracts a penalty of 1% interest per month on the delayed period.