Property Tax
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Q1.      Why Property Tax?
Ans.    The Municipal Government of South Delhi Municipal Corporation vest in South Delhi Municipal Corporation and for the purpose of the Delhi Municipal Corporation Act, the Corporation levies certain obligatory and discretionary taxes.  Property tax is one such obligatory tax.


Q.2.     Who is liable to pay property tax?
Ans.    Property Tax is leviable on all buildings and vacant lands in Delhi except exempted categories such as vacant lands or buildings or portions thereof exclusively used for the purpose of public worship, public burial or cremation grounds, heritage lands & buildings etc., which have been listed in section 115 of the Act.


Q.3.     What are components of property tax?
Ans.    The property tax consists of a building tax and a vacant land tax.


Q.4.     What are rate of property taxes?
Ans.    The building tax and the vacant land tax are levied by the Corporation at a minimum of 6% and maximum of 20% of the annual values of vacant lands and building.


Q.5.     Who determines the rate of taxes, rebates and exemptions?
Ans.    The South Delhi Municipal Corporation determines the rate of taxes on year to year basis and such taxes are determined by 15th February each year for the next following year.  The Corporation also determines the rebates and exemptions in addition to those permissible under the Act.

Q.6.    What is vacant land?
Ans.    Vacant land means the land within the premises excluding the land occupied by the plinth of the building erected there on.  Where there is a construction on the land and the area of the plinth of such building is in excess of 25% of the area of the plot no vacant land tax is levied.

Q.7     What is Unit Area System?
Ans.    Unit Area System, introduced from 1st April, 2004, is a simple arithmetical system of calculation of annual value based on covered area of the building or the vacant land by the unit rate for the category in which the building or vacant land is located and tax can be calculated by the tax-payer on self-assessment basis.


Q.8     How to assess my tax under the Unit Area Method?
Ans.    The method of calculation of tax and the annual value is available in the Return Form prescribed for the purpose.  While filing the property tax return online, the system itself calculates the annual value and the tax thereon whereas in the case of manual return, the formula for calculation of annual value and the tax thereon has been prescribed in detail in the Return Form itself.


Q.9      How to calculate the annual value of covered space of a building and vacant land?
Ans.     The Annual Value of a building and vacant land is calculated as under:-
Building = Unit Area Value X covered area of the building X occupancy factor X Age factor X structural factor X use factor X Flat factor
Vacant land = Unit Area Value X area of vacant land X occupancy factor X  use factor X 0.3
The four multiplication factors, occupancy factor, age factor, structural factor and use factor can be taken as per the property tax return form.


Q.10   What are the categories of colony?

Ans.    Delhi has been divided into 8 categories of colony.  These are category A, B, C, D, E, F, G & H.


Q.11   Who determines the Unit rates for each colony and the multiplication factors?
Ans.    The Delhi Government appoints a Municipal Valuation Committee which determines categorization of colonies, the Unit Rates for each colony and the multiplication factors.


Q.12   If different portion of the building are put to different uses or the building has been constructed in stages, how to calculate the Annual Value?
Ans.    In a case, where different portions of the building are put to different uses or the building has been constructed in stages, the Annual Value will be calculated for each portion separately and aggregate of such values shall be the Annual Value of the building or the vacant land.


Q.13.  What are the zones in South Delhi Municipal Corporation?
Ans.    There are 4 zones in South Delhi Municipal Corporation.  These are Central Zone, Najafgarh Zone, South Zone & West Zone.


Q.14.  Is any rebate available to owners of Group housing flats?
Ans.    A rebate can be allowed by the Corporation to the owners of flats in Group Housing Society.  At present such rebate is 20% of the tax payable.


Q.15    Is there a multiplication factor for DDA flats?
Ans.    The multiplication factor for the DDA allotted flats and the Group Housing flats is point 9 [0.9] for an area upto 100 sq. mtrs.


Q.16    Is there some provision for categorization of Janta Flats?
Ans.    Yes, the categorization of Janta Flats is as under:-
Central zone, South Zone             :           E Category
Najafgarh Zone, West zone           :           F Category


Q.17    When the tax is to be paid?
Ans.     Property tax becomes due on the 1st of April each year.  Tax can be paid either in one lump sum in the first quarter of the year i.e. up to 30th June which entitles a rebate of 15% on the tax due.  Alternatively, tax can be paid in four equal quarterly installments prior to 30th June, 30th September, 31st December & 31st March.  For late payment beyond the installment date of each quarter, interest @ of 1% per month is chargeable which must be added to the installment the time of payment.


Q.18    What documents do I need to attach with my return?
Ans.     The following documents as applicable may be attached with the Form:-

  1. Documentary proof of actual covered area or certificate from a registered architect.
  2. Proof of your age in case rebate for senior citizens is being claimed.
  3. Certificate from Authority prescribed under the Disability Act, 1995 for disabled persons.
  4. Proof of ownership in case rebate is being claimed for women owned property.
  5. Proof of being an ex-serviceman in case rebate is being claimed.
  6. Documentary evidence of tax assessed under the reteable value system (for properties which were assessed under the earlier system)
  7. Evidence of use of building for application of use factor being claimed, including certification of use for chargeable/non-profit purpose from the A&C Deptt.

NB:-     These documents would need to be filed only once with the first return and subsequently only if there is any change of status.


Q.19    What happens if there is a change in the occupancy/use factor after I have filed my return?

Ans.     In case of change in the occupancy/use factor a fresh self-assessment return may be filed informing about the change.


Q.20    Is my colony/area/locality likely to remain in the allocated category forever?
Ans.     No.  A Municipal Valuation Committee would be set-up every three years which would consider the changes in the classification, if found necessary.


Q.21    Can tax be recovered from the occupier?
Ans.     Property tax on any land or building is primarily leviable upon the owner of the property.  However, in case of land or building which is not self-occupied and where the owner is constrained by any law or order of a court of a law for recovering the tax due, such tax shall be recovered from the occupier of the property and the owner shall continue to pay such amount of tax as he was liable to pay before the coming into force of the Unit Area System and only the balance amount shall be recovered from the occupier.


Q.22    Can more than one rebate be claimed in case the person is covered under two or more categories entitles for rebates?
Ans.     No.  Only one rebate in addition to early payment rebate for senior citizen/women owned properties/physically challenged person/Ex-servicemen can be availed, even if a person is eligible for more than one rebate/concessions.


Q.23    What happens if I do not file my property tax return in time?
Ans.     The Act provides for stringent punishments for willful attempt to evade any tax or other dues or furnishing of wrong information in the property tax return which include fine or regress imprisonment or both.


Q.24     Is there a provision of appeal under the new system?
Ans.     Yes.  Appeals against the levy of assessment or revision of assessment of any tax shall lie to the Municipal Taxation Tribunal.


Q.25     Is the rebate for senior citizens, women owned properties, handicapped persons, ex-servicemen upto 200 sq. mtrs. of covered area available for jointly owned properties?  Would I get any rebate if my covered area exceed 200 sq. mtrs.?

Ans.     Yes.  This rebate can be availed for properties owned singly or jointly by two or more persons.  Rebate would be given if the covered area exceeds 200 mtrs. but the area above 200 mtrs. would not get any rebate.


Q.26     What happens if I do not pay my quarterly installment on time?
Ans.     Interest at the rate of 1% per month would be chargeable from the next quarter for delayed payments.


Q.27    Can the date of payment of tax in one installment which entitles me to a rebate of 15% be extended?
Ans.     No.  The last date for claiming this rebate i.e. 30th of June of every year is provided for by the Act and cannot be further extended.  Tax has to be paid by the 30th June to claim this rebate failing which an interest of 1% per month on the installment payable in the 1st quarter and subsequent payments would become due.


Q.28    If various portions of my property have been constructed in different year which age factor would be applicable?
Ans.     For portions of properties constructed in different year falling in different blocks the corresponding age factor for the particular block would apply to the relevant portion.  The annual values for such portions would have to be calculated separately and added to arrive at the total value.


Q.29    Is there any provision for refund of excess tax paid by me?

Ans.    Yes.  Excess amount paid shall be refunded by the Department.


Q.30     What do I do if my colony is not in the list of colonies?
Ans.     You may calculate the tax as per the Unit Area Value of the highest neighboring colony and simultaneously apply to Commissioner, SDMC for inclusion of your colony in the list and giving it an appropriate classification.


Q.31     I am constructing a new building which is not yet complete.  Do I need to file a return?
Ans.     You can file a return within thirty days of the completion of the building or as soon as it is occupied whichever is earlier.


Q.32     I am living in  a shared property.  Can I get my property tax apportioned,  so that I can pay my property tax separately?
Ans.     Yes.  The properly tax can be apportioned on payment of a fee of Rs.100/-.


Q.33     I am living in a flat.  Do I have to pay tax on the common arrears/services?  How do I calculate the same?
Ans.     Yes.  Tax is payable on common arrears/services in case of building shared by more than one owner/occupant.   The same shall be divided proportionately according to the covered area enjoyed by the owner/occupier.


Q.34     The property has not been mutated in my name in the Municipal records.  Can I file my property tax return?
Ans.     Yes.  You should file property tax return immediately to avoid payment of interest and penalty and simultaneously apply for mutation of property in your name.


Q.35     How can I file my Property Tax Return and deposit property tax?
Ans.     The Self-Assessment Property Tax Returns can be filed and tax deposited either on-line (through SDMC’s website) or off-line by filling up the requisite PTR form and depositing the same together with payment / cheque of Property Tax at the property tax office of the concerned Zone/HQ.  In case of on-line filing, the payment of property tax can either be made on-line through the credit card / debit card or print out of the challan generated can be obtained and the same can be deposited in the authorized Bank (Axis/HDFC are authorized at present) together with Cheque / payment of the property tax.


Q.36    How do I get tax receipt?
Ans.     For on-line payments by credit card / debit card, the receipt is instantly generated on-line, you can take print out of the same.  However, in case of challan generated on-line and deposited together with cheque in the SDMC authorized Banks, receipt is generated on-line after encashment of the cheque which takes a time of approximately three weeks or so.  Whereas in the case of deposit of payment manually at the office of property tax department, the receipt is issued manually at the spot.


Q.37     What can I do in case of dishonor of my cheque?
Ans.     You can immediately approach the concerned office of property tax department and deposit the tax with requisite charges, as may be calculated and intimated by the office.


Q.38     How can I identify the Ward and Zone in which my colony falls?
Ans.     All such information is available on SDMC’s website under ‘general information’.


Q.39     What is covered area?

Ans.    “Covered space” in relation  to a building, shall mean the total floor area in all the floor thereof, including the thickness of walls, and shall include the spaces of covered verandah and courtyard, gangway, garage, common service area, staircase, and balcony including any area projected beyond the plot boundary and such other apace as may be prescribed.



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