Property Tax Online Payment Process in India

In this article, we will be discussing the process of property tax online payment in India. Let us learn about it. Before learning about the online payment process, we need to understand what is property tax and why it is levied.

 

Table of Contents

• What is Property Tax?
• Property Tax Online Payment Process in India
• Step 1: Registration
• Step 2: Sign Up
• Step 3: Search for the Registered Property
• Step 4: Calculate and Pay Tax
• Step 6: Confirmation and Receipt
• Property Tax Calculation

What is Property Tax?

Property tax is either an annual or semiannual charge levied by the municipal locality of that area. It is to be paid by the owners of real estate within the jurisdiction. Property tax is a tax levied on immovable possessions such as land or structures. It is based on the assessed value of property that can be either real estate or tangible personal possessions. Individuals or legal entities such as corporations that own property have to pay this tax.

Property tax is the main source of revenue for municipal corporations so that they can offer and maintain basic civic services in the country. Property tax is applicable on residential and non-residential tangible establishments. These can be public, private or government institutions.  

Property Tax Online Payment Process in India

We will now learn the process of e-filing of property tax in India. The MCD online portal provides a Single Sign Up Authentication (SSO) service. First, citizens need to register by visiting mcdonline.nic.in website. Follow the below-given steps for property tax online payment.

Property Tax Online Payment Process Step 1: Registration

• Register on the MCD portal, click on Online Services.
• Then, fill in your zone, ward and colony. Then click on 'Search'.
• Do 'one time registration'. Citizens need to click on "New User Click Here for Sign Up / Registration".
• Citizens can sign up through their 'mobile number and OTP' or 'login ID and password'. In the case of mobile, international users will have to select their country code while entering the mobile number.
• Fill in your details including name, father name, address, mobile number and email.
• Validate your mobile number using an OTP and submit to complete the registration process.
• Once the registration process is complete, sign in with your mobile number and OTP or with your login ID and password. 

Property Tax Online Payment Process Step 2: Sign Up

• After this, go to the online services tab. Over there, click on 'Property Tax' and do 'citizen login'. 
• Enter login details and sign in. Login can be done with 'mobile number and OTP' or with 'login ID and password'.
• Once the system validates your details, you will be able to view the property tax dashboard.

Property Tax Online Payment Process Step 3: Search for the Registered Property

• Once you sign up, a dashboard will appear. This will display the details of every property registered by the taxpayer. 
• In case, this is your first time on the portal, then the citizen has purchased a property that is:
  

1. Already registered with MCD. 

Again two scenarios will be there:

1.1 The Taxpayer has UPIC

If the taxpayer has the 15-digit alphanumeric number assigned to their property. A taxpayer can search their property using one of the combinations of parameters mentioned below:

• Owner Name
• UPIC/Property ID
• Property Address
• Ward/Colony/Zone

After entering the above-mentioned parameters, you will be able to see the details of your property. At the end of the row, you will see a column that mentions 'Action'. Click on this button and select the option 'choose property to pay tax'.

1.2 Taxpayer has UPIC but needs to transfer it

In such a case, first, search for the property detail. Request for UPIC transfer by using the 'Request UPIC Transfer' option under the action button. Once you have made the request, the MCD officer will verify this request and transfer UPIC based on the facts. Once the request has been approved, the details of the property will be available on the dashboard to pay property tax.

2. Not Registered with MCD

In case the property is not registered with MCD, the taxpayer can click on 'apply for new UPIC' and make a request for new UPIC allocation for the property that is not registered.

To apply for the new UPIC, fill in property details and attach the required documents. You need to have the following details: 

• Property Category
• Ownership category
• Ownership type
• Location detail: Ward, colony and zone
• Address details: 
• House/plot /flat/farmhouse number
• State
• District
• Sector/Phase Number/Block/Pocket/Lane/Street
• Owner details: Name, Age, Email, Address, Phone Number

The system will automatically allot a new UPIC for NDMC and SDMC. EDMC will be allotted by MCD officials. Once you are allotted UPIC, property details will be automatically available on the dashboard in draft mode. Click on the action button to 'Edit Property/Owner details' to fill out the details of the property or the owner. 

Property Tax Online Payment Process Step 4: Calculate and Pay Tax

• Calculate Tax: After updating or confirming your property and owner details, the next step is typically to calculate the amount of property tax you owe. Many municipal websites have a 'Calculate Tax' button or a similar feature that automatically calculates the tax based on the details provided, including the property's category, size, location, and applicable rebates or exemptions.
• Review Tax Details: Before proceeding to payment, review the calculated tax amount, and any applicable rebates, exemptions, or penalties. Ensure all the information is accurate.
• Select Payment Method: Choose your preferred payment method. Most portals offer various options, including net banking, credit/debit cards, and sometimes UPI or wallet payments.
• Make Payment: Follow the prompts to complete the payment process. Enter your payment details carefully to avoid any errors.
• Acknowledgement Receipt: After the payment is successful, you should receive an acknowledgement receipt or a challan as proof of payment. It's important to save this document for your records.

Property Tax Online Payment Process Step 5: Confirmation and Receipt

• Email/SMS Confirmation: You'll likely receive a confirmation of your payment via email or SMS, which should include details of the transaction.
• Download/Print Receipt: Log back into your account on the municipal portal to download or print an official receipt of your property tax payment. This receipt is crucial for documentation and future reference.

Property Tax Calculation

Property tax is calculated using the formula given below for both residential and commercial property.

Total Built-up Area of the Property x Rate per Sq.Ft. x 12 = Annual Rental value (A.R.V.)

Property Tax Rates 

The property tax rate is a percentage of the annual value of covered space of the building and vacant lands or part thereof:

Sector	House Tax Rate	Commercial Tax Rate
A	12%	20%
B	12%	20%
C	11%	20%
D	11%	20%
E	11%	20%
F	7%	20%
G	7%	20%
H	7%	20%