MCD issues order on revamped property tax rates

The Municipal Corporation of Delhi (MCD), has issued an order on the new rates of the property tax, which will be applicable from July 16, 2022, aiming to bring uniformity. “Property tax will be payable at the rate of 20 per cent uniformly on residential and non-residential farmhouses.

In addition to the above rates of property tax, an Education Cess of 1 per cent on annual property tax will also be payable,” the order read.

 “The MCD has fixed various ‘use factors’ for different types of properties. It has assigned four for entertainment and club, six for banquet hall and Baaraat ghar, one for school, college, medical college, engineering college run or aided by government or local body, three for unaided or educational institutions run by a trust and private institutions, four for commercial use and three for industrial use. Property tax will be calculated using the ‘use factor’ at the rate of use factor two for all non-residential properties,” the order stated.

As per the order, the MCD will collect 12 per cent rate for residential colonies of A and B category; 11 per cent for residential colonies of C, D, E categories; Property tax will be levied at the rate of 7 per cent for residential colonies of  F, G, H categories. “For non-residential properties up to 1500 sq ft, Property tax rate has been fixed at 20 per cent for categories A, B, C, D, E and 15 per cent for F, G, H. Non-residential properties above 1500 sq. ft. have been prescribed a property tax at a uniform rate of 20 per cent. Property tax has been fixed at a uniform rate of 15 per cent on industrial properties,” it stated.

“For computing the service charge at the rate of 75 per cent on Central and Railway properties and for government undertakings, PSUs.  Property tax will be charged at the rate of 15 per cent for residential buildings and 20 per cent  for non-residential buildings from constitutional bodies, tribunals, government departments etc.

Property tax will be payable at the rate of 20 per cent for covered land for airports and attached properties and 15 per cent on open spaces such as runways, taxiways, aprons, airport parking lots and 10 per ent on other land,” it informed.

 “In order to promote disposal of waste at source level, the civic agency has implemented a uniform rate to bring uniformity in the exemption given on property tax. 10 per cent rebate will be available on lump sum payment of property tax till the first quarter of every financial year that is 30th June,” it further said.

“Senior citizens, women, differently-abled and retired soldiers will get 30 per cent rebate in property tax on a self-use property of 100 square meters located in the city.  Apart from this, to promote digital payments, incentive at the rate of 2 per cent on property tax not exceeding Rs 10000 and  and limited to Rs 200 will be given,” the order read.

“MCD will give 10 per cent rebate in property tax to those group housing society whose 90 per cent residents will pay their property tax besides this an additional rebate of 5 per cent in property tax will be given to group housing societies which will do 100 per cent waste segregation at source, 100 per cent composting of wet waste, 100 per cent processing of recyclable dry waste and handing over 100 per cent of remaining dry waste tocorporation.

This additional rebate of 5 per cent in form of incentive will be extended in the way of taking up work at the recommendation of group housing society concerned,” it said.