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How to pay online, calculate and tax rate


Citizens of Gurugram (erstwhile Gurgaon) can make almost all payments online. Property tax payment in the Millennium City is also hassle-free, as users can pay their tax liability through various virtual channels using digital wallets.  In this article, we discuss the various aspects of property tax payment in Gurugram.

 

What is property tax?

A tax directly levied on property, it is an amount that the property owner is expected to pay to the local government or the municipal corporation of his area. Property tax must be paid for all immovable assets such as personal house, rental house, office, etc.

All owners are liable to pay a certain amount as property tax every year to the municipal bodies of their areas. In the Millennium City, the Municipal Corporation of Gurugram (MCG) collects property tax from citizens. In this article, we would check out the procedure to calculate house tax bill in the city and how users can make that payment online.

See also: What is land tax and how to pay it online?

 

How to calculate property tax in Gurugram?

With a view to simplify the property tax assessment and payment process, the MCG in 2013 came up with a new system that allows citizens to self-assess their tax liability, based on the rates applicable on their specific house type. In other words, the MCG follows a system for tax calculation that takes into account the size and use of the property.

As Gurgaon and Faridabad have been categorised as Type A1 cities (all other cities in Haryana fall under the A2 category) for property tax purposes, the rates are similar for similar types of property in the two cities.

 

Property tax rate on residential property in Gurugram and Faridabad

For tax purposes, residential properties are divided into independent houses, flats or apartments and vacant land plots in Gurugram and the charges vary, depending on the type of residential property you own.

 

Property tax rate on independent homes built on plots

House area Property tax per year
Up to 300 square yard (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

 

Do note here that these rates are applicable on properties with only the ground floor. If the owner has built multiple floors, he enjoys 40% rebate on the first floor and 50% rebate on the second floor while paying taxes. No rebate, however, is available if each floor is owned individually. Also, no tax applies on basements that are used for parking only.

 

Property tax rate on flats in housing societies in Gurugram

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

 Check out property rates in Gurgaon

 

Property tax rate on vacant plots in Gurugram

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

 

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 on PGs in Gurugram

Before 2018, paying guest (PG) accommodations in Gurugram were treated as residential property and taxed accordingly. However, after the MGC realised it incurred a loss of Rs 20 crores on account of such categorisation that has been in force since 2008 when the municipal body was established, it changed categories of PGs from residential to ‘lodging house’ for the purpose of levying property tax. Owners have to pay tax at Rs 1,000 per bed per year as tax on PG accommodations under the Haryana Municipal Corporation Act.

 

Property tax rate on shops in Gurugram

Under income tax laws, shops are treated as house property and not commercial property. The rates mentioned below are applicable only on shops located on the ground floor.

Shop area Property tax per year
Up to 500 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 Rs 15 as areas would be treated as commercial

A property tax rebate of 40% for the first floor and 50% rebate on the second floor would apply, if the entire building is owned by one person. If the owner has partially leased space in this establishment, he will have to pay 1.25 times of the above mentioned rates for the leased space.

 

Property owners who enjoy full rebate on property tax

The MCG offers complete or partial exemption on property tax to certain individuals.

  1. Flats of up to 2,000 sq ft: If you own a flat in a housing society that has a carpet area of less than 2,000 sq ft, you don’t have to pay any property tax.
  2. Self-occupied properties of freedom fighters, war widows, defence personnel and family: Full exemption on property tax is offered by the MCG on self-occupied properties of freedom fighters, war widows, former defence servicemen and their families.
  3. Lal Dora propertiesStarting April 1, 2020, the MCG also offers full property tax rebate on Lal Dora properties.
  4. Early birds:While the MGC offers 10% rebate on property tax to early birds i.e. people who pay their property tax before July 31 of that assessment year, it also offers a one-time 30% rebate to property owners, who clear their property tax dues within 45 days of notification of the rates.

 

How to pay property tax online in Gurugram?

You can pay your property tax in Gurgugram by personally visiting the MCG office or do it online. Follow this three step process to pay your property tax online in Gurugram.

Step 1: Log on to the MCG web site, https://www.mcg.gov.in/. On the left side, you would find the tab, Property Tax.  Click on it to reach another page which you show you multiple options. By clicking on ‘Property Tax’ tab on this page, you would initiate the payment process. To download your property bill or register you complaint with regard to the bill, click on the ‘Property Tax Bill’ option. Click here to search, assess or pay your property tax in Gurgugram.

 

 

Step 2: On the Page that appears, you will have to key in all details of your property, including Property ID, Owner Name, Father/Husband Name, Mobile Number, Email ID, Zone, Locality, Ward and Address. After correctly filling each detail with utmost care, click on the ‘Search’ button.

 

Step 3: The page that now appears would show you your property tax. In case you don’t see any miscalculation in the amount, proceed to pay the tax using your debit/credit card details, net-banking credentials or UPI wallet details. Once you key in all details, you have paid your property tax.

 

How can I pay property tax bill offline in Gurgaon?

One can pay property tax offline in Gurgaon by visiting Property Tax Collection Centres, also known as Citizen Facilitation Centres, or any branch of Oriental bank of Commerce in the city.

 

Penalty for late payment of property tax

Residents and housing societies, who do not cooperate with the property tax surveyors in Gurgaon, may have to face action as the city municipal body has decided to lodge first information reports (FIRs) against them. Amenities like power and water supply of such residents, may also be cut if they fail to share the information sought by the property surveyors in the city.  The new directive by MCG commissioner Vinay Pratap to the tax department came, after the department faced various instances of housing societies and citizens in the new sectors trying to withhold information.

Typically, if a property owner fails to pay his tax within the specified timeline, an interest of 1.5% is charged per month on the outstanding payment liability. In case a property owner willfully under-reports his property tax, the authority imposes a fine equal to the tax evasion. The 1.5% per month interest would also be charged in case of under reporting of tax liability, if applicable. According to the rules, however, the penalty amount should not exceed the initial liability.

 

Gurgaon property tax latest news

MCG seals five properties over property tax dues of Rs 31 lakhs

The MCG, on August 13, 2021, sealed five properties of property tax defaulters. These property owners have failed to pay tax dues exceeding Rs Rs 31 lakhs. The Municipal Corporation of Gurugram had earlier announced that it would conduct a special drive against property tax defaulters, in August 2021. MCG commissioners Mukesh Kumar Ahuja earlier directed the officials of the taxation wing to expedite the recovery of property tax from the tax defaulters. The commissioner instructed the zonal taxation officers to issue notices against such property owners who had outstanding property tax amount of Rs five lakhs or above and seal their properties, by conducting a special drive in August in case of non-payment of property tax.

Haryana to assign unique IDs to all properties

Haryana chief minister Manohar Lal Khattar has said that every property in the northern state would be assigned a unique property identification number. To be assigned to all sorts of properties, including those owned by the state government and its various agencies, these unique ID numbers are expected to cut down property-related disputes in the state, while also providing clear land and property-related records to the general public.

Tax payment deadline extended till December 31, 2020

The Coronavirus pandemic has affected business across India and civic bodies are no exception. It would be appropriate to cite the example of the Municipal Corporation of Gurugram here. Against the overall projection of Rs 1,100 crores of revenue generation through property tax collection in FY21, the MCG has been able to collect only Rs 21 crores between April and June 2020.

In view of the situation earlier, the MCG, which is considered the richest municipal body in Haryana,  had also extended the deadline to file the property tax till December 31, 2020, keeping in view the ongoing conditions. Tax payers, who have pending tax dues since financial year 2010-11, will get a one-time rebate of 25% on the outstanding liability, if they clear the dues till financial year 2019-20, by December 31, 2020. The deadline to avail of a 10% rebate on the tax for the year 2020-21 has also been extended till December 31.

Earlier, the Haryana government had announced a one-time rebate of 25%, on dues for the years 2010-11 to 2016-17 that are paid by August 31, 2020.

Meanwhile, the MCG has also introduced an incentive system for RWAs and ward committees, to take them on-board on property tax collection. RWAs will be able to claim 5% of the collected property tax from the MCG for waste management work in their areas.

 

MCG property tax payment 2020

However, amid a drastic fall in revenue collection from other sources, the MCG has issued a warning to the owners, to clear their dues till October 31, 2020, or face disruptions in power and water supplies. As a next step, the MGC will seal the properties of the defaulters and sell those in the open market, to recover dues. According to media reports, the MGC has sent notices to over 1,600 defaulters in this regard.

After Diwali 2020, in fact, the MCG has already started severing the water and sewerage connections of property tax defaulters. Those residents, whose pending property tax bill ranges between Rs 1 lakh and Rs 5 lakhs, will be punished by way of losing their water and sewerage connections while defaulters with dues more than Rs 5 lakhs will face sealing of their properties.

In a notification earlier, the Haryana government has said that those taxpayers who pay their property tax within that period, will be given a 25% exemption on property tax from 2010-11 to 2016-17.

“We have given a last opportunity to the property owners to pay their dues within the next three days. If they still do not pay their property tax, the process of cutting their sewer and drinking water connections will be initiated by the civic authority, from November 1, 2020. A special drive to seal commercial buildings will be carried out and the process of auction can also be adopted by sealing the building,” MCG commissioner Vinay Pratap Singh said.

MCG tax collection saw a spike after the Haryana government decided to give a 10% rebate to the property owners who pay taxes by July 31 for the assessment year 2020-21. This deadline was later extended till October 15, 2020, and subsequently to October 31, 2020.

Update on October 27, 2020:

Property registrations in Gurgaon have been impacted, because of frequent glitches in the city’s online registration system. The state government has recently re-started the registration process for plot-based properties, after a ban of over one month.

The technical glitch would not only throw-off sellers’ and buyers’ plans to close a deal during the festive season, it will also impact the earnings of the state’s revenue department, considering that Gurgaon is the biggest contributor, in terms of revenue earned through property registration.

MCG to review status of proposals approved in 2020 house meetings

The Gurgaon municipal body has decided to review the status of proposals approved in 2020, during a special meeting scheduled for February 4, 2021.

 

FAQs

How do I find my property ID number to pay property tax online in Gurgaon?

You property ID number is mentioned on the tax receipts you received in the past. If you are a new tax payer, you can find out the ID by keying in all the other details about your property on the MCG website, https://www.mcg.gov.in/.

Can I pay property tax in Gurgaon using UPI?

Yes, you can use UPI wallet apart from net-banking and credit/debit cards to pay property tax in Gurgaon.

How can I download property tax bill for Gurgaon?

Click here to download your property tax bill in Gurgaon.

Do I have to pay property tax on my basement and parking lots in Gurgaon?

Under the new system, basement and parking lots in residential establishments enjoy full tax rebate.

Do I have to pay property tax in Gurgaon if the house size is 1,000 square foot?

For self-occupied properties of up to 2,000 sqft carpet area, the owner does not have to pay property tax in Gurgaon.

 

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