Calculation of Property Tax in Delhi

The formula for calculating the Property Tax in Delhi is given as below. 

Annual Property Tax:

Annual Value x Rate of Tax x Exemption Category

                                  100

Where...

Annual Value: Unit Area Value (Rs/ sq.mt.) x Covered area (sq.mt.) x Age Factor x Structure Factor x Use Factor x Occupancy Factor x Flat Factor

Unit Area Value for properties falling under any of the following colony categories (Rs./ sq.mt.):

A	630	E	270
B	500	F	230
C	400	G	200
D	320	H	100

Age Factor:

• 0.5: if construction completed before 31 Mar, 1960
• 0.8: if construction period falls between 01 Apr, 1980 to 31 Mar, 1990

Structure Factor:

• Pucca Type: factor 1 (buildings with load bearing roof)
• Semi-Pucca type: factor 0.7 (buildings with normal load bearing roof like tukri)
• Kutcha type: factor 0.5 (buildings with temporary material for walls and roofing, including tin sheds/ asbestos sheets)

Use Factor:

Below is the Use of Property with the corresponding Use Factor:

Residential: 1	Schools (fee Rs.600-1200/ month): 2
Business- Self-occupied/ tenanted: 4	Schools (fee beyond Rs.1200/ month): 3
Industrial- Self-occupied/ tenanted: 3	Colleges (Govt.): 1
Government/ Government aided schools/ colleges: 1	Colleges (UGC Recognized): 1
Hotels (3 star and above): 10	Colleges (Trust): 2
Towers: 10	Educational Institutes (fee below Rs.600/ month): 1
Hoardings: 10	Educational Institutes (fee Rs.600-1200/ month): 2
Public Purpose: 1	Educational Institutes (fee beyond Rs.1200/ month): 3
Public Utility: 2	Educational Institutes (Govt.): 1
Religious Institution: 1	University: 1
Telecommunication tower: 2
Business- Vacant: 2	Medical Institution (Govt.): 1
Industrial- Vacant: 2	Medical Institution (others, including nursing homes): 2
Hazardous building: 4	Medical Education Institution (Govt.): 1
Workshops & Auto-repair Garages: 3	Medical Education Institution 1: 1
Restaurant: 4	Medical Education Institution 2 (approved by tech.body): 2
Hotels (up to 2 star): 4	Medical Education Institution 3: 3
Lodges: 4	Schools (Govt./ Govt. aided): 1
Guest Houses: 4	Schools (fee below Rs.600/ month): 1
Banquet Halls: 4	Schools (fee Rs.600-1200/ month): 2
Recreation (Movie halls, Theatres, City halls, Assembly halls, Exhibitions, Baratghars, Museums, Auditoriums, etc.): 3	Schools (fee beyond Rs.120/ month): 3
Mercantile (Shops, STD booths, Warehouses, Transporters, Wholesale traders, Cold Storage, etc.): 4	Vacant land in use: Relevant use factor
Sports Purpose (Gym, Clubs, Sports, Dance halls, Health Club, Recreation piers, Bowling alleys, etc.): 3	Vacant land (no use): 1

Occupancy Factor:

• Residential (self-occupied): 1
• Residential (rented): 2
• Non-Residential (self-occupied): 1
• Non-Residential (rented): 1
• Farmhouse Residential (self-occupied):1
• Farmhouse Residential (tenanted): 2
• Government- Residential (self-occupied): 1
• Government-Residential (rented): 1
• Government- Non-Residential (self-occupied): 1
• Government- Non-Residential (rented): 1
• Farmhouse- Non-Residential (self-occupied):1
• Farmhouse- Non-Residential (tenanted): 1

Flat Factor: (applicable only for DDA/ CGHS flats):

Up to 100 sq.mt.on prorata basis: factor of 0.9

Rate of Tax:

1. Residential Rate of Tax (%):

• A, B, C, D and E: 10
• F, G and H: 6

2. Non-Residential Rate of Tax (%):

• A, B, C, D, E, F, G and H: 10

Exemption Category (if not applicable value is taken as 1):

Agricultural- Sec 115(1)(i), Vacant land or building in village abadi occupied for residential purpose by any original owner or legal heir up to 200 sq.mts. of covered space (on pro-rata basis), exclusively used for public worship- Sec 115(1)(iii), used for public charity- Sec 115(1)(iv), land and building exclusively used for burial/ cremation ground- Sec 115(1)(v), heritage lands and buildings- Sec 115(1)(vi), owned by war widow/ gallantry award winner being permanently used for self-residence and no portion is let out for any purpose whatsoever-Sec 115(1)(vii) and land and building of Corporation as per section- Sec 115 (1)(viii).

For all the above mentioned categories, the factor is taken as ‘0’.