A Complete Guide on SDMC Property Tax

Every property owner of South Delhi is liable to pay SDMC property tax to South Delhi Municipal Corporation (SDMC). Property tax is a recurring charge imposed on property, and owners must pay it to avoid facing legal repercussions. The Government of Delhi bestows this task of collecting and managing property tax on SDMC, which is eventually used to upkeep the local amenities in its jurisdiction. 

Steps to pay SDMC property tax online

Here are the steps for making SDMC property tax payment online:

Step 1: Go to the official website of South Delhi Municipal Corporation (SDMC).

Step 2: Now log in to the portal by entering the necessary credentials and get the property registered using Unique Property Identification Number.

For individuals who do not have the UPIC, click on ‘Apply for New UPIC’ to generate a new UPIC ID. If taxpayers have already registered their property in the portal, proceed by clicking on the ‘Search Property on UPIC’ tab.

Step 3: Now, the taxpayer has to search the registered property by using the property ID or receipt number and year of the last tax paid or by using the colony and name of an owner.

Step 4: Navigate to the ‘Action’ tab and click on ‘Use this Property to Pay tax’.

Step 5: Now make SDMC property tax payment through available payment options.

Eventually, click on ‘generate challan’ tab and save the property tax receipt for future references.

Even the tax payment can be made in offline mode. Taxpayers need to visit the nearest ITZ cash counters and make payments using cheque, credit card, cash etc. However, the online tax payment method has brought transparency to this system.

Rebates and Exemptions on SDMC property tax 

Taxpayers receive several rebates and exemptions under SDMC property tax. These include:

  1. A rebate of 30% is given to senior citizens, women, ex-servicemen and individuals with disabilities.
  2. 20% rebate is for group housing flat owners who make property tax payments before 30th June. 30th June is considered the last day to make SDMC property tax for any financial year.
  3. 15% deduction for those who will make tax payments in the first quarter.
  4. 10% rebate on the yearly price one has to pay CGHS/ DDA flats till 100 square meters.
  5. Presently, a 5% deduction is announced for residential property owners who are vaccinated.

Following are the exemptions offered to taxpayers based on the property type:

  1. A property owned and is used permanently for self-residence by war widows or gallantry award winners.
  2. Property owned by the family of an individual martyred serving in police or parliament or by award winner in international sports.
  3. On all the agricultural land apart from those used for dwelling purpose.
  4. Exemptions on property owned by SDMC employees physically challenged.
  5. Land utilised for charitable purposes, public worship, etc., or heritage land.           

SDMC property tax calculation

Individuals need to use the following mathematical formula to compute total tax payable:

Property tax = Annual value of a property X current tax rate

Must Read: Pay SDMC Property Tax Online to South Delhi Municipal Corporation

Here, annual property value = Total area covered by the property X Unit area worth per square metre X age factor X occupancy factor X use factor X structure factor X flat factor.

It is imperative to note that the current tax rate depends on the category of property categorised from A to H. In addition, it depends on a property’s value located in that particular jurisdiction.

Individuals from South Delhi seeking to avail a loan against property should clear the property tax beforehand to avoid rejection.

Borrowers can get a substantial loan amount by pledging their residential or commercial property; however, they have to ensure that the property is free from legal litigation and registered under the SDMC portal. 

Furthermore, to help with this loan application process, leading financiers extend pre-approved offers. These offers available on financial products like a loan against property, home loans etc., streamline a credit application process and save time. Individuals can check their pre-approved offers by entering their name and contact details.

To sum up, residents of South Delhi must ensure the payment of SDMC property tax and maintain a record to avoid any complications in future. Moreover, with the emergence of the Digital India initiative, it has become convenient for taxpayers to pay property taxes online.