Gurgaon Property Tax: Tax Rates, Calculations And Payment Process

Property tax is a type of direct tax imposed by the state Government on all real estate properties, including residential homes, commercial properties, vacant land, and rented out properties. Gurugram (formerly Gurgaon) residents must pay a certain amount of property tax to their local municipal bodies each year. This tax is collected by the Municipal Corporation of Gurugram (MCG). In this article, various key aspects of MCG Gurgaon property tax are explained in detail. Read on!

Property Tax Rate in Gurgaon 

MCG uses a simple system of calculating property taxes based on the property’s area and type of usage (residential/non-commercial or commercial). To ensure transparency in the property tax collection system, MCG bases the tax amount on the use and size of the property. Property tax rates in Gurgaon are as follows, according to MCG guidelines: 

MCG House Tax on Residential Properties

The tax rate on residential properties: 

• Up to 300 sq yard: Rs. 1/sq yard 
• 301-500 sq yard: Rs. 4/sq yard 
• 501-100 sq yard: Rs. 6/sq yard 
• 1001-2 acre: Rs. 7/sq yard 
• 2 acre and above: Rs. 10/sq yard 

These rates apply only to properties with a ground floor. If the owner built the first and second floors, the rebate is 40% and 50%, respectively. Floors owned by individuals are not eligible for rebates. Furthermore, basements and parking lots are tax exempt. 

MCG Gurgaon property tax on housing societies is determined by carpet area and is as follows: 

• Up to 2000 sq ft: Rs.1 per sq ft 
• 2001-5000 sq ft: Rs.1.20 sq ft 
• 5000 sq ft and above: Rs.1.50 sq ft 

MCG House Tax on Vacant Plots 

Residential Vacant Plot Tax Rate: 

• Up to 100 sq yard: Nil 
• 101-500 sq yard: Rs. 0.50/sq yard 
• 501 sq yard and above: Rs. 1/sq yard 

MCG property tax on commercial shops 

Shops are treated as residential property rather than commercial property under income tax laws. The rates listed below are only valid for shops on the ground floor. 

• Up to 500 sq yard: Rs. 24 /sq yard 
• 51 to 100 sq yard: Rs. 36/ sq yard 
• From 101 sq yard to 500 sq yard: Rs. 48/ sq yard 
• From 501 sq yard to 1,000 sq yard: Rs. 60/ sq yard 
• Above 1,000 sq yard: Rs. 15 as areas would be treated as commercial 

If one person owns the entire building, a 40% property tax rebate on the first floor and a 50% rebate on the second floor will apply. In case the owner partially leases some space in the establishment, they will be obligated to pay 1.25 times the rates listed above for the leased space. 

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How to Pay MCG Gurgaon Property Tax Online?

The MCG has made the property tax payment easier by making it available online. Follow these steps to pay your Gurgaon property tax online at MCG’s website: 

Step 1: Visit MCG’s official website   

Step 2: Select the “Property Tax” option. 

Step 3: Enter information such as the property ID, name, Father/Husband Name, mobile number, locality, ward, and address. Fill out the form and then click the “Search” button. 

Step 4: Check each detail, and if there are no errors, proceed to make the payment via net banking or punch your debit/credit card details.  A tax receipt for the payment made will be generated for future reference.

How to Pay MCG Gurgaon Property Tax Offline?

To pay MCG property tax offline, go to one of the city’s Property Tax Collection Centres. These centres are called Citizen Facilitation Centres, and you can also pay your taxes at any Orient Bank of Commerce branch in the city. When paying your MCG property tax bill offline, representatives verify the property details presented by you. Once you have completed your payment, you can obtain the MCG property tax receipt.

Factors Deciding MCG Property Tax 

MCG collects property tax like any other city, but the rates vary by city. The following factors influence Gurgaon property tax: – 

Location 

If you live in a posh neighbourhood, you will have to pay more money in MCG property tax. Charges are lower in more affordable areas. 

Area 

The larger the property, the more property tax must be paid. 

Age 

If your property is new, you will have to pay more tax. You will have to pay less in taxes if it is an older structure.

The Market Value  

The property’s market value is a crucial factor in determining property tax. 

Building Type 

Taxes differ for residential, commercial, institutional, and industrial properties. 

How to Calculate Property Tax in Gurgaon? 

The MCG introduced a new system in 2013 to simplify the property tax assessment and payment process, allowing citizens to self-assess their tax liability based on the rates applicable to their specific house type. On the MCG website, there is a tool that allows citizens to determine their tax liability. 

The MCG uses a tax calculation system that considers the size and use of the property. Because Gurgaon and Faridabad are both Haryana Type A1 cities, rates for similar types of properties are comparable. 

Property Tax Rebate in Gurgaon 

liability. In other words, you will receive a tax refund at the end of each fiscal year if your tax liability is less than the amount you paid. 

A 30% rebate or concession is permitted once for property owners who pay their property tax dues within 45 days of notification. Owners who pay by the 31st of July of a given year are eligible for a 10% discount. Government buildings also receive a 50% exemption. 

Penalty for Late Payment of Property Tax 

If you do not pay your property tax on time, you will have to pay a penalty equal to the amount of tax evaded. This is in addition to the applicable Gurgaon property tax. 

• In the case of late payment, 1.5% per month interest will be charged on the outstanding balance.  
• In the case of an incorrect declaration, interest and a penalty will be charged.

 Gurgaon Property Tax Exemption 

There are few circumstances under property tax in Gurgaon in which MCG provides are a 100% rebate or is exempted: 

• If the home is self-occupied and belongs to a member of the defence/paramilitary forces, ex-service/ex-paramilitary force personnel, or their spouse. 
• If the house is owned and occupied by a freedom fighter, their spouse, or a war widow. 
• Suppose the house is owned by the families of deceased soldiers/veterans/ex-central paramilitary forces personnel. In that case, provided they do not own any other residential property or rent it out to others. 
• If you own a vacant plot of one acre or more that is used for horticulture/agriculture. 
• The MCG will also provide a 100% property tax rebate on Lal Dora properties beginning April 1, 2020. 
• Temples, mosques, or other religious establishments, buildings and lands are exempt from MCG property tax if the revenue is used for public or religious services.

Gurgaon property tax latest news 

The government has instructed MCG to recover 90% of its property tax dues this fiscal year. As per the latest update from MCG, homeowners have 30 days to correct property tax details. The owners must check to see if their property details are correct or if the surveyor assessed them incorrectly. If owners have any objections regarding the property tax, they can have them resolved on the Haryana Property Management System portal within a month. If they do not make the necessary changes within 30 days of receiving the notice, it will be assumed that the MCG tax on their properties is correct. MCG will also hold daily camps across the city to correct discrepancies in the new property IDs. 

Final Words

Residents of Gurugram must pay property tax based on the size and utility of their plots. This tax is collected as part of the revenue of the Municipal Corporation of Gurugram. Furthermore, the MCG house tax applies to all Gurugram urban properties. The Municipal Corporation collects MCG property tax in Gurgaon every year. This tax is then used to maintain and improve civic amenities like sidewalks, roads, sewage systems, parks, streetlights, and so on. Failure to pay property tax on time can lead to legal issues in the future.

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