MCG Property Tax : Know How to Pay Property Tax in Gurgaon?

Property tax is an amount of money that a property owner is bound to pay to the local administrative body of his area. These local administrative bodies are called municipal corporations. They are entrusted by the state governments with the responsibility of working towards the development of cities and districts.

Property tax is a major source of income for these municipal corporations. These regulatory bodies depend on taxes for the financial assistance they require. With the help of taxes, these municipal corporations are able to provide civic facilities to the public. These facilities may include educational institutions, health care institutions, smooth running and maintenance of drainage systems, roads, etc. Hence, property tax plays a major role in helping municipal corporations ensure the efficient running of community amenities.

MCG Property Tax Introduction

If you possess ownership of any property or real estate asset in Gurgaon, then you are obligated to pay a tax for this ownership. You are liable to pay this property tax to the Municipal Corporation of Gurgaon (MCG). You must pay this property tax every year without fail. Property owners all over India are bound to pay property tax for their ownership. However, it should be noted that the rate of this tax varies from state to state. For example, if you are a resident of Gurgaon, then your property tax guidelines are determined by your local authorities like the Municipal Corporation of Gurgaon (MCG). This indicates that you fall under the MCG property tax regime. Hence, if you own a house in Gurgaon, your property tax will fall under MCG house tax.

The municipal corporation Gurgaon property tax is collected based on a few deciding factors. This Gurgaon property tax is decided depending on the size and location of the property, the construction type, the occupancy type, and other building details. It should be comprehended that you are obligated to pay property tax even if your house is left vacant.

How to Calculate MCG Property Tax?

It is simple to compute the MCG property tax. You have to visit the MCG official website and use the MCG property tax calculator. You can use this calculator to determine your tax liability. There are several factors to consider for calculating the MCG property tax, like size, location, etc. Faridabad and Gurgaon are Tier-1 cities in Haryana; thus, the property rates are equivalent for similar properties here. 

MCG House Tax On Residential Properties

Here are the MCG property tax slabs on residential properties.

 MCG House Tax On Vacant Plots

For vacant plots or residential space, the MCG property taxis as follows:

MCG Property Tax On Industrial Spaces

For industrial or commercial spaces, the Municipal Corporation of Gurgaon property tax is as follows:

MCG Property Tax On Commercial Shops

The Municipal Corporation of Gurgaon has divided the commercial spaces into the following slabs.

MCG Property Tax On Institutional Space

The MCG property tax for institutional spaces is as follows:

MCG Property Tax On Standard Commercial Space

Read the MCG property tax on general commercial space.

Property tax on PGs in Gurugram

Previously, the PGs or paying-guest accommodations in Gurgaon were considered residential properties, and the MCG tax rate on these properties was determined accordingly. However, such categorization led to a loss of Rs 20 crores on part of the MCG. On realization of this loss, the municipal corporation of Gurgaon altered the residential status of PGs and changed it to “lodging houses”. This allowed the MCG to levy property tax on the PGs in Gurgaon. Now, PG owners are bound to pay Rs 1000 per bed per year as property tax to the MCG.

Steps for MCG Property Tax Payment

The MCG property tax payment can be completed in two ways. If you wish to make the payment via offline mode, you can visit the MCG office. If you wish to complete the MCG house tax payment online, you can follow the steps explained below:

Step 1- To pay the Gurgaon property tax online, you will first need to visit the official website of the municipal corporation of Gurgaon.

Step 2- On this webpage, you will find an option called “Property Tax”. Clicking on this option will automatically redirect you to a page that will display an option called “Search and Pay Property Tax”.

Step 3- By clicking on this option, you will be taken to a webpage that will ask you to enter certain details like your Property Identification number, mobile number, zone, locality, email address, ward, along with the owner’s name.

Step 4- You will need to fill in these details with apt accuracy and proceed by clicking on “Search”.

Step 5- After clicking on “Search”, you will be redirected to a webpage that will display the details of your property tax. You will need to review these details and make sure there are no mistakes or miscalculations.

Step 6- Once you finish reviewing the property tax information, you can proceed to payment which can be done using online banking platforms, credit cards, debit cards, and also UPI platforms.

On completion of your MCG property tax online payment, you will receive an acknowledgement for the same. You are advised to keep this acknowledgment secure for future purposes.

How to Pay MCG Property Tax Offline in Gurgaon?

To pay MCG Gurgaon property tax via a traditional method, follow the below-written steps:

Step 1: Visit the Municipal Corporation of Gurgaon office or the centres where property tax is collected.

Step 2: Provide all the information regarding your property like property ID, name, address, etc.

Step 3: Make the payment in cash or by using your debit/credit card.

Step 4: Once the payment is confirmed, collect the payment receipt.

Note: You can also visit any branch of Orient Bank of Commerce in Gurgaon. The bank person will verify and assist you with making payments for your property.

MCG Tax Calculator

The rate of property tax is not uniform across the country. It differs from state to state. The Municipal Corporation of Gurgaon largely considers the size and use of the property in question in their process of deducing the rate of property tax. They have introduced a system that allows property owners to assess their tax liability themselves.

Property owners are also provided with other instruments for reviewing their tax liability. One such instrument is the MCG Tax Calculator that can be accessed online to calculate one’s comprehensive property tax liability. It should be noted that the typical interest rate of property tax varies between 5% and 20%.

MCG Property Tax/House Tax Formula

The MCG Gurugram, considers factors like occupancy status of the property, age of the property, base value of the property, usage type, etc, before determining the rate of property tax MCG.

The base formula followed by the MCG for property tax calculation is given below:

MCG Gurgaon Property Tax= built-up area x Age factor x Base value x Type of building x Category of use x Floor factor.

Penalties And Rebates On MCG Property Tax

Penalty:

If somehow you are unable to pay the MCG property tax on time, you might have to pay a penalty. For late payment of property tax, you have to pay an interest of 1.5% every month from the time you delayed the payment. 

However, in the case of a wrong declaration, interest will be charged as a penalty. And, penalties along with tax evaded have to be paid by the owner in case they didn’t pay the property tax. 

Rebate:

• Any self-occupied residential properties owned by any defence personnel, freedom fighter family, deceased soldier’s family, or paramilitary personnel are exempted from MCG property tax for up to 300 square yards.
• All the vacant lands used for agricultural purposes of about 1 acre are also exempted from MCG property tax. 
• Religious places like churches, temples, etc. are not liable to pay MCG property tax.
• If you have a flat with about 2000 sq. ft. in any housing society, then you don’t have to pay MCG property tax.
• The State government has waived off the property tax on Lal Dora properties from April 1, 2020.
• Also, owners who have paid property taxes within 45 days of the notification date will receive a 30% rebate. And, owners who have paid taxes before July 31st will be given a 10% concession. 

Conclusion

MCG Property tax is paid to the Gurgaon government for any property you own. The amount levied by the MCG property tax is collected over all the residential and commercial properties. In return, the public got services like better roads, water, electricity, and many more. Paying MCG property tax works like an investment for yourself and the public. Therefore, we hope that you understand everything about it.

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