How To Pay Property Tax Online?

Before you pay taxes online or offline for your property in Delhi, read the table below to know the property tax rates charged by MCD based on different categories:

Online Process

You can view property tax bill online as well as pay taxes on property online or offline. The steps for both are given below:

A. Steps for Paying Property Tax Online on the Website

Visit the official website of your area’s municipality as there is no single website where all the residents of a city/ state can pay property tax online. Every municipality has its own official website. Visit the official website of your area’s municipality to pay property tax.

Select the ‘Property Tax’ option and then select the property type (i.e. Residential or Commercial).

Enter your Property Tax Number/ Revenue Survey Number/ Khatha Number. You can find these numbers on your property tax bill. After entering the number, select the assessment year for which you want to pay the property tax online.

When you enter the Property Tax Number and Assessment Year, a form will appear on the screen with all your property details such as owner’s name, total area, etc. Verify the mentioned details to make sure that the details are accurate. At the bottom, check if your total outstanding property tax is the same as the amount mentioned on your property tax bill.

If all the details are correct, select the payment method. Most municipalities allow payments via Internet Banking, Credit Card or Debit Card. 

You will be redirected to the payment portal from where you can make the payment.

If the transaction is successfully completed, you will receive a challan/ receipt for the same. 

After you pay tax bill online, take a printout of the receipt for future reference. 

B. Steps for Paying Property Tax Online on the Paytm App

Open the Paytm App on your mobile phone or visit https://paytm.com/municipal-payments to pay your taxes on property. 

Navigate to the ‘Bill Payments’ section and select ‘View More’. You can also use the search bar and enter ‘Municipality’ for which you have to make the payment.

Select your ‘Municipal Corporation’ on the next screen.

Enter the required details like Property Number, Property ID, Ward Number, etc. to make the real estate tax bill payment.

Then click on ‘Get Tax Amount’.

Check the payment amount and select the payment mode of your preference.

Proceed to complete the payment.

C. Steps for Paying Property Tax Offline

If you are unable to pay your property tax online, you can opt for the offline option. To pay the property tax offline, you will need to calculate the due amount and fill up the appropriate forms. Once the forms are appropriately filled, you can make the payment at the municipal corporation office of your area or at the designated banks in affiliation with the municipal corporation or at special cells set up by the government for tax collection. You may need to provide your Property Tax Number or Khatha Number to identify your property.

The municipal corporation uses the unit area system to calculate house tax. Further, it employs a mathematical formula mentioned below to calculate the tax amount:

Property Tax = Annual value x Rate of tax

The corporation calculates the annual value of a property using the following formula:

Property Tax = Unit area value per sqm x Structure factor x Age factor x The covered area of property x Use factor x Flat factor x Occupancy factor

Here is a description of each factor mentioned above:

Unit Area Value per square meter: It depends on the property’s category

Structure Factor: It is based on the property construction

Age Factor: It falls on a scale of 0.5 to 1 depending on the property’s age

Covered Area of Property: It shows the property’s total floor area

Use Factor: It is based on the property usage

Flat Factor: It depends on the total area covered by the flat

Occupancy Factor: It is based on the property’s occupancy (self-occupied or rented out)

Before you pay house taxes online, you can use the property tax calculator available online to check property tax amount to be paid.

The following tax exemptions are permitted under Section 24:

• Standard Deduction: This permits a tax exemption of up to 30% of the net annual value. Individuals occupying their sole property are excluded.
• Interest Deduction on Home Loan: Section 24 allows exemption of interest on the principal amount of a home loan, with a limit of Rs. 2 Lakhs for self-occupied properties.
• No Deduction for Brokerage/ Commission: The Income Tax Act does not allow deductions for brokerage/ commission related to loan/ tenant arrangements.
• Timeframe for Exemption: Individuals must finish the house purchase or construction within 3 years of the loan tenure to claim the full Rs. 2 Lakhs exemption; otherwise, only Rs. 30,000 is applicable.

The following tax deductions are permitted under Section 80C

The deduction under Section 80C is applicable to homeowners who possess only one house property at the time of loan sanction. The value of the home loan should be below Rs. 35 Lakhs and the property's value must not exceed Rs. 50 Lakhs to qualify for the deduction. This provision encourages homeownership by providing tax benefits to individuals meeting the specified criteria. Homeowners can claim deductions under the said section, thereby reducing their taxable income and fostering affordability with moderately valued properties. It serves as a targeted incentive within the framework of income tax to support and promote home ownership in a specified economic bracket.