Facts You Need To Know About MCD Property Tax [Infographic]

If you own a house in Delhi or planning to buy one this year, I bet you are getting all curious about the MCD Property Tax. This had us curious too. So we found out what it actually is and simplified complex terms on the tax form.

We digged deeper and have now come up with interesting facts about property tax. Did you know that the property tax is the principal source of revenue of urban municipalities? Well, yes, that's true, but did you also know that the Municipal Corporation of Delhi's performance in tax collection has been abysmal historically?

Out of the 25.3 lakh properties in Delhi, only 9.6 lakh are registered, according to a 2013 India Municipal Finance Report of the National Institute of Public Finance and Policy. The number of assessed properties, in fact, have gone down after 2004 when the municipal body started calculating property tax according to the unit area system. 

Now, aren't you curious to know more?  

From 2007-08 to 2011-12, the property tax collection of the MCD has nearly doubled, from over Rs 40,000 crore to Rs 80,000 crore (Infographic By Sandeep Bhatnagar)

The per capita property tax in Delhi in 2006-07 was lower than many smaller cities like Kochi and Surat. The per capita property tax collection of the Cochin Municipal Corporation in 2006-07 was Rs 322, while that of the MCD was Rs 312.   

The per capita property tax in Delhi in 2006-07 was lower than much smaller cities like Kochi and Surat.

However, not all figures are dismal. Consider this: in 2009-10, the property tax collected by the MCD per capita has grown to Rs 7153. In 2011-12, the amount of property tax collected has nearly doubled from over Rs 40,000 crore to Rs 80,000 crore. 

The MCD's property tax collection as a percentage of revenue income tends to rise since 2006-07.

According to the projected figures from the Department of Urban development, Government of Delhi, the MCD's property tax collection as a percentage of revenue income has risen since 2006-07.  As per estimates, the collection was 24.9% of the total revenue of the municipal body in 2005-06 and grew steadily to 36.9% in 2010-11 only to fall to 34.2% in 2011-12.

From 2007-08 to 2009-10, the number of tax payers and the property tax collected by the MCD has risen.

From 2007-08 to 2009-10, the number of tax payers and the amount of property tax collected by the MCD have risen. In 2007-08, the number of property tax payers in Delhi was 8.1 lakh, and the total amount of property tax paid was Rs 513 crore. But, by 2009-10, the number of property tax payers had risen to 9. 73 lakh and the total property tax collection had gone up to Rs 696 crore.