South Delhi Municipal Corporation Property Tax – Payment Process
If you own a real estate in South Delhi, you must pay South Delhi Municipal Corporation property tax or SDMC property tax. The Municipal Corporation uses this money to construct and maintain local roadways, drainage systems, sanitisation systems, etc. This tax is levied on constructed residential and commercial projects and unoccupied/vacant land. Read on to find out more about SDMC Property tax in detail.
Introduction to SDMC Property Tax
Every property owner in India is mandated to pay a certain amount of tax as property tax to their respective municipal corporations. Each city has its regulations, fees, and procedures. When you own a residential property in Delhi, the Municipal Corporation of Delhi (MCD) collects the MCD property tax from you annually. However, depending on the area where your property is located, you must pay your property taxes to the South Delhi Municipal Corporation (SDMC), the North Delhi Municipal Corporation (NDMC), or the East Delhi Municipal Corporation (EDMC). Also, in Delhi, there are 8 categories, ranging from A to H, varying rates/value of the property, which influences the property tax value too.
How to Pay SDMC Property Tax?
SDMC Property Tax can be paid via online or offline mode, as is preferred by the taxpayer. Given below are the steps to be followed in each of the given modes:
1. Online
The easiest way to pay your SDMC property tax is through the MCD website via internet banking, a debit, or a credit card. The MCD has made investments to upgrade and modernise its website to facilitate and promote more online property tax payments.
Following are the steps to pay your SDMC property tax online:
- Step 1: Go to the Municipal Corporation of Delhi’s official website
- Step 2: Click on ‘Select your Service Area’
- Step 3: Now, select ‘South Zone’ in the Zone selection tab. ‘Ward’ and ‘Colony’ must be filled in too.
- Step 4: Click on ‘Search’, and an option to ‘Pay Property Tax’ pops up in a bar below. Select that, and you will be redirected to a portal.
- Step 5: Under ‘User Login’, you may use a mobile number, and the OTP thus generated to access your data, or simply fill in the login id, password, and CAPTCHA to log in for existing users. In case of a new user, you must sign up/register yourself before proceeding.
- Step 6: Now, click on ‘Search Property on UPIC’, and on the next page, enter your UPIC (Unique Property Identification Code) or Property ID OR Receipt number of tax paid and year of tax paid OR Colony and Owner name and click on search.
- Step 7: Click on ‘Calculate and Pay Tax’
- Step 8: Now, select the financial year for which this payment is to be made
- Step 9: Finally, check your property details and click on ‘Calculate Tax’.
- Step 10: You may proceed to the payment gateway to make the payment for Property Tax SDMC.
2. Offline
If you prefer not to pay your SDMC property taxes online, you can do so offline/ in-person at an ITZ cash counter, an HDFC or Axis Bank bank, or a Customer Service Bureau Center. Cash, bank drafts, cheques, and credit and debit cards, are acceptable forms of payment.
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How to Pay SDMC Property Tax Online without a Property ID?
One can select the ‘first-time online taxpayer’ option while paying property taxes online, which stands applicable if it is their first time filing a property tax return. You must click on ‘Click here if property tax has not been allotted earlier.
The user will then be directed to a page where the information regarding the ownership of the property must be entered. Select the ‘I have read and accept the declaration made above’ checkbox before clicking ‘Submit’.
The registered mobile number will subsequently receive a message with the property ID. This property ID can be used to submit property taxes in the future. Following submission, DMC tax can be paid through a credit card, debit card, or online banking. You can also view and download the challan on ‘generate challan’.
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What are the Property Tax Rates in SDMC?
Refer to the tables below to order to get an overview of the SDMC Property tax rates
| Category | Unit Area Value (Rs. Per sq. metre) |
| A | 630 |
| B | 500 |
| C | 400 |
| D | 320 |
| E | 270 |
| F | 230 |
| G | 200 |
| H | 100 |
| Category | Residential Property | Commercial Property | Industrial Property |
| A | 12% | 20% | 15% |
| B | 12% | 20% | 15% |
| C | 11% | 20% | 12% |
| D | 11% | 20% | 12% |
| E | 11% | 20% | 12% |
| F | 7% | 20% | 10% |
| G | 7% | 20% | 10% |
| H | 7% | 20% | 10% |
What are the Property Tax Rates in SDMC?
7 factors are considered to ascertain the amount to be paid as the SDMC property tax:
- Tax Rate: Tax rates for property in category A to category H are published annually by the MCD.
- Unit area value: This is a figure that is the assigned value per sq. metre of the built-up area. The unit area value varies for each category ranging from A to H.
- Unit area of property: To compute the unit area of the property, the built-up area in sq. metres is taken into account, and not the carpet area.
- Age factor: As a norm, new properties are taxed higher than their older counterparts. Using the property’s age, it is assigned a value ranging from 0.5 to 1.0. Refer to the table below for the exact rates.
| Construction | Age factor |
| Prior to 1960 | 0.5 |
| 1960-69 | 0.6 |
| 1970-79 | 0.7 |
| 1980-89 | 0.8 |
| 1990-99 | 0.9 |
| 2000 onwards | 1.0 |
- Use factor: Residential properties as a norm are taxed lower than non-residential properties. Refer to the table below to find out the exact rates:
| Property type | Use factor |
| Residential property | 1 |
| Non-residential public purpose | 1 |
| Non-residential public utility | 2 |
| Entertainment, clubs and industry | 3 |
| Restaurants and up to 2=star hotels | 4 |
| 3-star and above hotels, hoardings and towers | 10 |
- Structure factor: Taxes are more on RCC constructions than low-value constructions.
- Occupancy factor: Taxes on rental properties are greater than on self-occupied properties.
Latest News for SDMC Property Taxpayers
According to South Delhi Municipal Corporation, the year 2021-22’s property tax collections were the highest ever. The MCD claimed it broke all previous records by collecting Rs 1,081 crores of property taxes. They had received Rs. 943 crores in the last fiscal year. Even though almost 4.65 lakh people filed property taxes this year, many more properties are to be brought into the tax net, according to the authorities.
A statement by the SDMC official said that they have attempted to make tax payments easy and user-friendly to the general public through digital modes, which has helped increase property tax collections in the year. The facility to pay their back taxes online also played an important role in the collections. The residents appreciated this move as it eased the process for them and made the tax-paying system efficient.
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How is SDMC Property Tax Calculated?
The MCD uses a ‘Unit Area System’ to compute property tax throughout the city. The formula given below can be used to calculate the SDMC property tax manually:
Property Tax = Tax Rate x Annual Value. Here, Annual Value = Unit area value * Property unit area * Age factor * Use factor * Occupancy factor * Structure factor
Properties Exempt from SDMC Property Tax
Given below is a list of properties that are exempt from SDMC property tax:
- Agricultural land
- Heritage structures
- Buildings utilised for charity endeavours
- Property owned by war widows or martyred law enforcement or paramilitary troops (however, it needs to be used as self-residence, and no portion of it should be let out)
- Property owned by gallantry award winners
- Property owned by recipients of international medals
Rebate on SDMC Property Tax
The due date for SDMC property tax payment is March 31. You can pay your SDMC property tax online anytime during the year before the cut-off. Some rebates are available if the tax is paid in a lump sum within the first quarter of the financial year. However, only homes that the owners occupy are eligible for this reimbursement. Given below are the rebates available:
- Flats CHGS/DDA 10% of the annual value for built-up areas up to 100 square metres
- Group housing 20% tax refund for payments made until June 30
- 30% for senior adults who are property owners for up to 200 square metres of a single property
- 30% for women who own real estate for up to 200 square meters of a single property
- 30% for up to 200 square metres of a single property for differently-abled individuals who are property owners
Other Rebates Include:
- By paying tax before June 30th of the current FY, a taxpayer can receive a 15% rebate (advance tax payment rebate).
- Taxpayers who pay their taxes online are eligible for a 2% rebate on taxes for up to Rs. 10,000.
- Suppose all eligible family members have received vaccinations under the Government of India’s notice (COVID-19). In that case, the taxpayer may also be eligible to receive a 3% rebate on residential properties, as announced by the government.
Conditions for Availing Rebate/Concessions
- Refunds are available for properties up to 200 square metres in size. The cap is 100 square metres for DDA/CGHS units.
- Only residential units used for personal accommodation are eligible for tax rebates.
- In the case of joint ownership, concessions are given based on the property share of the owners who are eligible for a property tax rebate.
Penalties on SDMC Property Tax
SDMC property tax last date is March 31st. Property owners must pay 1% annual interest per month on the outstanding tax amount if they pay their MCD property taxes late. Property tax payments made all at once are eligible for a 15% rebate if paid during the first quarter of the financial year.
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How Can you Report for any Grievances Relating to SMDC Property Tax Payments?
To seek redressal for grievances relating to SDMC property tax, one can either visit the SDMC office address, simply contact them on their registered phone number, or even email the issues to their email ID.
Property Tax Contact Details:
- Headquarters address: The Municipal Corporation of Delhi, Dr. S.P.M. Civic Centre, Minto Road, New Delhi – 100002
- Call Center Number: 155305
The details of the SDMC office are given as:
- Contact Number: 011-26188715
- Email ID: [email protected]
Final Word
Taxpayers are motivated to pay property taxes regularly by the SDMC. Not only is the process simple with the availability of online and offline modes of payment, as discussed earlier in the article but also, the benefits in terms of the concessions and exemptions to early taxpayers make it a positive process for the tax collectors and the taxpayers.
If you own real estate in South Delhi, you have a civic responsibility to pay the SDMC property taxes annually. Online payment for SDMC property taxes is simple, and if you pay in advance, you will be entitled to rebates too. By paying your taxes, the municipal corporation collates the money to provide and maintain basic facilities such as roads and sanitation and upgrade local infrastructure where possible, leading to a better quality of life for the civilians. Online payment for SDMC property taxes is simple, and if you pay in advance, you will be entitled to rebates too.
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FAQs
Ans: The 15-digit SDMC property ID is a special code that may be used to extract information about a building, including its built-up area, construction year, type of construction, etc. The property title deed, property tax bills, and prior SDMC property tax receipts all contain this information.
Ans: The built-up area includes both the interior space of a building’s walls and the wall thickness. It excludes shared hallways/corridors in residential buildings and balcony areas
Ans: SDMC property tax is computed as Annual Value * Tax Rate, wherein, Annual Value = Unit area value * Property unit area * Age factor * Use factor * Occupancy factor * Structure factor
Ans: March 31st of every year is the last date for paying the SDMC Property tax.
Ans: In the case of joint ownership, concessions are given based on the property share of the owners who are eligible for a property tax rebate.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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