Property tax can be considered as the principal source of revenue for local municipal authorities, which they use to perform civic duties in a city. Every residential owner has to pay property tax to their respective municipal authorities on a yearly or monthly basis. And, these rates are dependent on aspects like age, location, and the type of property one owns.
Just like other cities, Delhi also has a specific municipality body called Municipal Corporation of Delhi or MCD, where Delhi residents are accountable to pay their property tax. Even though the procedure of paying taxes involves just a few steps, several issues due to lack of information have been found in the system.
In order to eliminate such issues and make the process more transparent, Delhi Government initiated the pay property tax online method where one can directly pay the tax.
However, before opting for the online procedure, individuals should be aware of the basics like MCD tax computation formula, steps to make the payment, information regarding penalties and rewards, etc.
Steps to pay MCD property tax online
Central Government’s ‘Digital India’ movement is highly beneficial for working individuals who can simply make use of the online system to pay their taxes. The easy process also ensures that you get to submit the tax on time. Property owners can also easily get the house tax paid receipts which can further be used to avail financing options like loan against property.
Here are the simple steps you can follow to pay your house tax online:
Step 1: Visit the online portal of MCD and choose the area precisely from options like South Delhi MCD, East Delhi or North Delhi MCD.
Step 2: The page will further ask you to check their terms and conditions, which you need to tick off in order to proceed further, and then choose the ‘click here to file property tax’ option.
Step 3: You are required to enter the property ID and the year which you will be filing the tax for. For the first-time users, there is a specific option called ‘click here if property ID has not been allotted earlier.’ Once there, you can submit your details to create the ID and go ahead.
Step 4: For other users, the screen will display your property ownership details that you need to scan through and submit carefully. Here it will show you the payable tax amount where you can simply choose one of your convenient payment options to pay property tax online.
Step 5: The last step will be to ‘generate challan’ and keep it for future reference.
These paid tax receipts come in handy when you decide to apply for a new property loan or refinance the existing one to get better interest rates. One must go through a list of documents needed to apply for a loan against property, where the copy of these tax receipts perfectly asserts your annual income and loan-repayment abilities.
Also, along with completing the documentation procedure, availing of pre-approved offers from reputed lenders can also ease and hasten this financing. These offers are available on various financial products, such as LAP loans, home loans, etc. Therefore, you can simply check your pre-approved offer by providing certain details, including phone number and name.
Besides the property tax, a borrower should also know how to avail of tax benefits on their loan against property to save on additional liabilities. At any rate, paying house tax payment online is also needed as a responsible citizen to take part in development purposes.