Guide to Paying Gurgaon Property Tax

Taxes form an integral part of government revenue. One of these taxes is a property tax which is charged to the property owner. The taxes are to be paid in a particular manner and are different for each state and jurisdiction, and so is a particular way to pay property taxes. This blog focuses on the steps to pay property tax in Gurgaon.

What is a Property Tax?

Property tax is a kind of tax that is levied by the government on the owners of real estate which can include any form of property like a house or an office building or property being rented. The term property also includes any form of improvements made to the land and building as well. 

This tax has to be paid annually or semiannually to the local government or the municipality in charge as per the jurisdiction. This tax varies as per the size of the property as well as the location and city and state. While calculating property tax one also takes into account the valuation of the property. The taxable amount thus collected is used for the maintenance of roads, collection of garbage, street lighting, sanitation, and various other utility services.

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Benefits of Paying Property Tax

The various benefits of paying property tax are:

• It helps contribute to the various developments in society, maintain basic civic amenities, and develop infrastructure.
• It helps avoid penalties or fines imposed on the property owner and legal consequences for non-payment of the property tax.
• It helps maintain a good relationship with the municipal authorities, ensuring hassle-free property ownership.
• In case there is a property dispute, the receipts from the property tax can be proven as crucial proof of property ownership.
• The receipt of property tax is also considered significant in case one wants to obtain a loan against the property from a bank.

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How does one calculate the property tax to be paid in Gurgaon?

In Gurgaon, one has to pay property tax to the Municipal Corporation of Gurugram  (MCG). In 2013, the MCG introduced a system of calculating the property tax to make it easier for property owners. It has divided the properties into different categories to make the process of payment more user-friendly. The city of Gurgaon comes under Type A1 cities. The property tax rate of the self-use medium and small residential properties is low as compared to the commercial and larger properties.

Property tax in Gurgaon is assessed based on the type and usage of the property. The primary categories of property taxed include residential properties, commercial properties, industrial and institutional properties, and vacant land.

• Property tax rate on independent homes built on plots in Gurgaon

House area	Property tax per year
Up to 300 square yards (sq yard)	Re 1 per sq yard
From 301 to 500 sq yard	Rs 4 per sq yard
From 501 sq yard to 1,000 sq yard	Rs 6 per sq yard
From 1,001 sq yard to 2 acre	Rs 7 per sq yard
Above 2 acre	Rs 10 per sq yard

• Property tax rate on flats in housing societies in Gurgaon

House carpet area	Property tax per year
Up to 2,000 sqft	Re 1 per sqft
From 2,001 to 5,000 sqft	Rs 1.20 per sqft
Above 5,000 sqft	Rs 1.50 per sqft

• Property tax rate on vacant plots in Gurgaon

I. Residential plots

Vacant plot area	Property tax per year
Up to 100 sq yard	Nil
From 101 to 500 sq yard	Rs 0.50 per sq yard
Above 500 sq yard	Re 1 per sq yard

ii. Commercial, industrial, and institutional plots

Size	Rate
Up to 500 sq yard	Nil
101 sq yard and above	Rs 5 per sq yard
501 sq yard and above	Rs 2 per sq yard

• Property tax rate on Shops in Gurgaon

Shop area	Property tax per year
Up to 50 sq yard	Rs 24  per sq yard
From 51 to 100 sq yard	Rs 36 per sq yard
From 101 sq yard to 500 sq yard	Rs 48 per sq yard
From 501 sq yard to 1,000 sq yard	Rs 60 per sq yard
Above 1,000 sq yard	would be treated as commercial space

• Commercial & Institutional Spaces

Area For Commercial Spaces	Property Tax
Up to 1000 square feet	Rs. 12 per square feet per year
More than 1000 square feet	Rs. 15 per square feet per year
Area for Industrial Spaces	Property Tax
Up to 2500 square yards	Rs. 5 per square yard per year
From 2501 square yards to 2 acres	Rs. 6 per square yard per year
From 2 acres to 50 acres	Rs. 6 per square yard per year till 2 acres + Rs. 2 per square yard for the area above that
More than 50 Acres	Rs. 6 per square yard per year till 2 acres + Rs. 2 per square yard for the area above 2 acres but below 50 acres + Re.1 per square yard for the area above 50 acres

• Property Tax on Institutional-Commercial Spaces

Area for Institutional-Commercial Spaces	Property Tax
Up to 2500 square yards	Rs. 12 per square yard per year
From 2501 to 5000 square yards	Rs. 18 per square yard per year
More than 5000 square yards	Rs. 24 per square yard per year

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Important Documents Required For Paying Property Tax in Gurgaon

• Property ownership documents (sale deed, allotment letter, possession letter, etc.).
• Property tax assessment notice issued by the Municipal Corporation of Gurugram.
• Identity proof (Aadhaar card, PAN card, passport, etc.)

How do you make the payment of Property Tax?

1. Online Payment:

• The first step is to visit the site of  Municipal Corporation Gurgaon to pay the property tax.
• After opening the site, one should click the property tax tab on the left side.
• The next is to log in with your mobile number.
• After logging in, enter the PID or the address or locality or owner’s name.
• After entering all the necessary details, the tax-related information will be available on the screen.
• One should carefully go through the information, making sure that there is no discrepancy.
• After reviewing, the next step is to proceed with the payment of property tax.
• Various payment options, such as credit or debit card or net banking, will be available, depending on the owner’s choice.
• After making the payment, one should ensure that they get the receipt for the property tax payment and save it for future reference.

2. Offline Payment:

• The first step is to visit the tax collection centre, which is the citizen facilitation centre, or to visit the designated bank (Oriental Bank of Commerce) to pay the property tax due.
• At the centre, the representative will verify the property details.
• The next step is to make the payment and obtain the receipt for the property tax due payment.

Penalty for late payment of Property Tax

Suppose a property owner does not pay property tax. In that case, he will be penalized with a penalty equal to the amount of tax evasion, in addition to the already outstanding amount of the property tax. If the property owner is late in making the payment, interest will be charged at the rate of 1.25% per month. Interest will also be levied in case the property owner makes a wrong declaration, along with a penalty.

Is there any rebate available on Property Tax in Gurgaon?

There are certain conditions in which the MCG offers rebates on the property taxes. If the MCG property tax is paid before the last date, then the owner would be entitled to a 10% rebate on the applicable tax amount. A 40% rebate is available on the first floor and a 50% rebate on the second floor for multi-story properties owned by a single individual. These are  full 100% rebates on the following types of properties:

• ALM House
• Municipal Properties
• Dharamshala
• Central and State Government Educational Institutes
• Government Hospitals
• Horticulture or Agriculture (up to 1 acre)
• State Government Buildings
• Lal Dora Properties (w.e.f. 1 April 2010)
• Flats up to 2000 square feet

Exemptions under property tax in Gurgaon

The government provides for exemptions from paying the property tax in a few  cases:

• Buildings or lands that are a sort of religious property or attached to the development of religious places like temples, gurudwara or mosques, or a church.
• Freedom fighters and their spouses live in a self-occupied house.
• Defence & ParamilitaryPersonnel in a self-occupied property
• Ex-Service Personnel and Family in a self-occupied property
• Paramilitary Force Personnel and Family in a self-occupied property
• Families of Deceased Soldiers or Ex-servicemen in a self-occupied property
• War Widow  in a self-occupied property

No Dues Certificate (NDC)

What is an NDC and Why It is Important

A No Dues Certificate (NDC) is a formal document issued by relevant authorities, such as municipal corporations or financial institutions, certifying that there are no outstanding dues or liabilities against a property or individual. This certificate is crucial for property transactions, securing loans, and ensuring clear ownership titles. It helps in verifying that all pending payments related to property tax, loans, or other dues have been settled, thereby facilitating smooth transactions and legal compliance.

How to Obtain an NDC After Payment

Obtaining a No Dues Certificate involves a few straightforward steps. Here’s a guide on how to obtain an NDC in Gurgaon:

Step 1: Register on the NDC Portal

• Visit the Property Tax Dues Payment & NDC Portal.
• Select your preferred language.
• Complete the registration by providing necessary details like name, mobile number, and email address. You will receive an OTP for verification.
• Create an account by following the on-screen instructions.

Step 2: Log in and Access the Portal

• After registration, log in to the NDC portal using your credentials.
• Navigate to the ‘Make Payment/Generate NDC’ section.

Step 3: Search Property Details

• Enter your Property ID (PID) or other required property details such as name, address, and zone.
• Click ‘Search’ to retrieve property details and outstanding dues.

Step 4: Make Payment

• Review the outstanding dues and make the necessary payment through available options such as debit/credit cards or net banking.
• After successful payment, a receipt will be generated. Save this receipt for future reference.

Step 5: Apply for NDC

• Once the payment is confirmed, go to the section to apply for the No Dues Certificate.
• Fill out the application form with relevant details and submit it.

Step 6: Track Application Status

• Through the portal, you can track the status of your NDC application. To check progress, enter the application number and other required details.
• The portal provides real-time updates on the status of your application.

Step 7: Download NDC

• Upon approval, the NDC can be downloaded from the portal.
• Ensure to save and print the certificate for official use.

Assistance and Support

If users have any issues or queries during the process, they can contact the portal’s customer support team. They provide assistance to ensure a smooth experience obtaining the NDC.

Contact Information for Support and Assistance

• MCG Helpline Numbers:
  • Toll-Free: 1800-180-1817
  • General Grievances: +91-124-4753555
  • Garbage Collection: 1800-102-5952
• MCG Office Address:
  • Municipal Corporation Gurugram, C-1, Info Technology Park, Sector 34, Gurugram, Haryana 122001
• Online Support:
  • For unresolved issues, escalate to the Joint Municipal Commissioner or Municipal Commissioner via the contact information provided on the MCG website.
  • Further grievances can be directed to the Public Grievance Cell of the Directorate of Urban Local Bodies, Government of Haryana.
• Email Support:
  • Use the contact form on the MCG website or specific email addresses provided for different departments.

By following these steps and utilizing the support resources, you can resolve most issues encountered during the property tax payment process in Gurgaon efficiently.

Conclusion

Property tax is one of the many taxes that people in society have to pay the government. The government levies property taxes based on location, size, and state. This blog focused on the property tax in Gurgaon. Various steps are involved in paying property taxes, whether online or offline. MCG offers various rebates, and even with early payment, you get a 10% rebate. Penalties are also imposed for wrongdoing.

Frequently Asked Questions on Paying Gurugram Property Tax

Q1. What is Property Tax?

Ans1. Property tax is a tax levied by the government on real estate owners, which can include any form of property, such as a house, an office building, or property being rented. 

Q2. Can I pay property tax in Gurgaon using UPI?

Ans2. Yes, one can use a UPI wallet as well as net banking and credit/debit cards to pay property tax in Gurgaon.

Q3. What is the penalty for non-payment of property tax in Gurgaon?

Ans3.  In case a property owner does not pay any property tax, he will be levied with a penalty which will be equal to the amount of tax evasion which will be in addition to the already outstanding amount of the property tax. In case the property owner is late in making the payment, then interest will be charged at the rate of 1.25% per month. The interest will also be levied in case the property owner makes a wrong declaration, along with a penalty.

Q4. What factors determine the amount of the Gurgaon property tax?

Ans4. Gurgaon property taxes are determined by taking into account the kind, size, age, location, and market value of the property in addition to its use and current market value.

Q5. Who do you pay Property Tax to in Gurgaon?

Ans5. In Gurgaon, one has to pay property tax to the Municipal Corporation of Gurugram  (MCG).

Q6. Is there any rebate available on Gurgaon property tax?

Ans6. There are certain conditions in which the MCG offers rebates on the property taxes. In case the MCG property tax is paid before the last date, then the owner would be entitled to a 10% rebate on the applicable tax amount. These are full 100% rebates on the various types of properties like ALM House, Municipal Properties, Dharamshala, Central and State Government Educational Institutes, and Government Hospitals.

Q7. How can I find my property ID number so I can pay property tax online in Gurgaon?

Ans7. Your property ID number is mentioned on past tax receipts. For new taxpayers, it can be found by entering other property details on the MCG website.

Q8. Are parking lots and basements included in MCG property?

Ans8. Yes, parking lots and basements are included in the Municipal Corporation of Gurugram (MCG) property tax assessment. These areas are considered part of the overall property and their value is factored into the total property tax calculation, ensuring comprehensive taxation of the property.

Q9. What is the last day to pay MCG Property Tax?

Ans9. The last day to pay MCG property tax typically falls within the first quarter of the financial year, often by June 30. However, exact deadlines can vary annually. It’s advisable to check with the Municipal Corporation of Gurugram for the current year’s specific due date to avoid penalties.

Q10. What is Family ID In MCG Property Tax?

Ans10. A family ID is also known as Parivar Pehchan Patra. It helps in availing services from the MCG and contains information about everyone in the family, such as age, Aadhar card number, voter ID, and phone number.