All About South Delhi Municipal Corporations—SDMC Property Tax

If you own a property in South Delhi, you should be completely aware of SDMC property tax. Let's learn more about it.

In India, East Delhi Municipal Corporations, North Delhi Municipal Corporations and South Delhi Municipal Corporations formed among the other Municipal Corporations of Delhi. Excluding this fact, it is also one of the five major local bodies of the National Capital Territory of Delhi.

You must pay a property tax to South Delhi Municipal Corporation or SDMC if you own a property in South Delhi. SDMC property tax is a direct tax that pays annually, and the Municipal Corporation then uses this money to build and maintain local roads, drainage, sanitation, etc. This tax applies to vacant plots and includes constructed residential and commercial projects.

About SDMC Property Tax

The South Delhi Municipal Corporation levies a property tax on all real estate properties under its jurisdiction, and this tax levy is on all vacant, occupied land or buildings. Due to this, you must pay an annual property tax to SDMC if you reside in South Delhi and own your property.

In addition, both commercial buildings and residential properties cover under this tax. Also, you are liable to pay the property tax to SDMC for your residential property, even though you might not be residing in it and have rented it out.

How to Calculate SDMC Property Tax?

The South Delhi Municipal Corporation adopts the Unit Area System for property tax calculation.

The SDMC generates a formula to derive the payable tax amount by a property owner in South Delhi under this system. The formula is:

Property tax = The current rate of tax x annual value of a property

But do not let yourself be confused by this term, as we will elaborate on each term now:

The annual value of a property

The SDMC calculates the annual value of a property through the formula, as such:

The annual value of a property = Covered area of the property x Age factor x Structure factor x Occupancy factor x Use factor x Flat factor x Unit area value per square meter.

Now, let's further elaborate on the factors in the above formula:

The covered area of property: The total floor area of a property is indicated by this.

Unit area value per square metre: A property's unit area value determines by its category (we will delve into the different categories of properties in some time).

Occupancy factor: Occupancy of a property is the determiner of this – whether it is self-occupied by its owner or rented out.

Age factor: Can be estimated on a scale of 0.5 to 1. in South Delhi, higher tax applies to newer properties than to older ones.

Structure factor: Depending on the construction of a property, SDMC assigns this factor.

Flat factor: It is evaluated based on the total area covered by a flat.

Use factor: Based on the usage of the property, the SDMC is assigned.

You can utilise an SDMC property tax calculator to simplify the calculation process further.

The current rate of tax

Depending upon the valuation of properties in different localities in the jurisdiction, the South Delhi Municipal Corporation divides into eight categories. The property's category ranges from A to H, and the SDMC property tax rate varies in each category.

How to Pay SDMC Property Tax?

Your property tax is payable both online and offline. Here you will find the ways through which you can easily complete your payments of the property tax to SDMC.

Online Method

• Click on the link to visit the official website of SDMC.
• https://mcdonline.nic.in/sdmcportal/.
• Click the sign-up button and register by filling out the form and submitting it.
• Log in to the customer portal of SDMC by using your login credentials.
• After logging in, you can register your property by providing your Unique Property Identification Number (UPIC).
• If you don't know the UPIC number, you can apply for one on the website and register your property.
• The final step would be to select the property on which you want to pay the property tax. Compute the SDMC property tax you ought to pay.
• Complete the payment process and save the receipt in a pdf format which you can use later for future reference.

Alternative Online Method

• Click on the link below to visit the official website of SDMC.
• https://mcdonline.nic.in/sdmcportal/.
• Click on 'Property Tax' under 'Online Service'.
• Provide your registered mobile number under 'Citizen Login'.
• A one-time password (OTP) will send to your mobile number. Enter the OTP and log in.
• Follow the instructions for completing the payment of SDMC property tax.

Offline Method

By visiting ITZ cash counters in South Delhi, you can pay your SDMC property tax offline. The payment can complete through demand draft, debit card, cash, cheque, credit card, etc. Also, by visiting the nearest branch of HDFC Bank, Axis Bank or the nearest Customer Service Bureau Centre, you can pay the SDMC property tax.

Exemptions and Rebates SDMC Property Tax

SDMC offers a rebate on this property tax in the following cases-

• On early payment of tax, a rebate of 15% is provided, i.e., during the 1st quarter of a financial year.
• Senior citizens, veterans, physically challenged individuals, and women provide a 30% rebate on a single property of up to 200 square metres.
• On the annual value of CGHS/DDA flats of 100 square metres, and gets a rebate of 100%.
• If the owners of group housing flats pay their property tax before June 30 of an applicable fiscal year, they provide a 20% rebate.

Additionally, In South Delhi, the following types of properties and groups of individuals are exempted from property taxes :

• Agricultural land/building
• Place of worship, public burial, buildings or vacant lands used for charitable purposes or serving as a heritage site,
• Property martyred on paramilitary or police duty
• A property owner with a Gallantry Award or a war widow who utilises the entire property for self-residence
• Property owned by an SDMC fully handicapped employee
• A sportsperson who has represented the country at international levels
• Widows of the Delhi Police, Indian Armed Forces, and Paramilitary personnel
• Sanitation workers or safaikaramcharis

Penalty for Late Payment of SDMC Property Tax

The civic body levied a fine of 1 per cent each month on the computed value (property tax) if you have not paid property tax within the stated period.

How to Save Tax on Property Buying?

You pay two types of taxes while buying property: GST and Stamp Duty. But, only under-construction properties are applicable for GST. It means that you will be exempted from the GST on the property if you have purchased a ready-to-move property.

Also, if the property comes under the affordable housing segment (within 45 Lakh), you can save a lot of GST on the property. In this situation, you must pay only 1% GST instead of 5%.

For saving the Stamp Duty taxes, there is no direct provision. But, concessions have been provided to female property buyers by the state government. Females have to pay 1-2% stamp duty lesser than male property owners in many states.

The alternative way to reduce stamp duty tax would be through concessions and rebates offered by the state government.

Advantages of SDMC Property Tax

• Low administrative expenses
• Payment rebate
• Society benefits
• Predictable amount
• Use property tax rate

Conclusion

You should fulfil your civic responsibilities and pay the SDMC property tax if you own a property in South Delhi. There shall be a formula to generate your payable property tax amount. If you make the payment early on, you may be eligible for a rebate and SDMC property tax online payment is an easy process.

Through your taxes, the municipal corporation receives funds to improve infrastructure in your area. It ensures that your roads are clean, keeps the sewer system working smoothly, lights the room up at night, and constructs parks – these things that your money will be used for. Thus, do not delay clearing your dues as early as possible.