According to a report, SDMC or South Delhi Municipal Corporation has decided to raise the property tax on educational institutions, commercial establishments, banquet halls, etc.
To avoid paying a high amount, individuals should pay the SDMC property tax before the commencement of the new rule. Ideally, this amount is utilised by the local governing body to maintain and develop basic civic amenities.
Late repayment of the said tax can add on penalties which can be an expensive deal. Hence, taxpayers must keep a tab on their applicable slab regardless of the property type and check the related variables.
How to pay SDMC property tax online?
Individuals residing in South Delhi can pay their SDMC property tax online by visiting the official website. It is imperative to know that paying the tax on time will help them gain a tax rebate in the first quarter of a year, provided the amount is in a lump sum.
Additionally, women,senior citizens, physically challenged property owners can again substantial rebate of upto 30% on the payable amount.
Hence, it is vital to know the steps to SDMC property tax payment online:
1:Visit the official SDMC website and click on the property tax section
2: Click on the dialogue box after reading the terms and conditions
3: On the redirected page, enter the property ID and click on submit
4: Make an online payment by selecting a mode of payment.
Taxpayers should download the payment receipt for proof and future needs. For instance, It can be considered as a part of the documents needed to apply for a loan against property and proof of property ownership.
How does SDMC property tax calculated?
The South Delhi Municipality Corporation applies a Unit Area System to calculate SDMC property tax. The formula applied is:
Property tax = Annual value x tax rate
In this formula, the annual value of a property is calculated by multiplying the age factor, unit area value per square meter, use factor, unit area of the property, occupancy factor and structure factor.
However, it is essential to know that the house tax rate will differ according to the region. For instance, an individual has a 1000 sq ft self-occupied property, and the house tax rate is 12%.
Lets’s say the unit area value = Rs.500 per sq meter
Unit area = 100 sq meter.
Age factor = 0.6
Occupancy factor = 1.0
Structure factor = 1.0
Therefore, annual value would be = 500x100x0.6x1x1 = Rs.30,000
Property tax = annual value x tax rate = 30,000×12% = Rs.3,600.
Here the net property tax will be Rs.3,600
Taxpayers can calculate their respective SDMC property tax by applying the exact value.
One should know that paying tax on time will remove the chances of facing penalties on the outstanding amount. This will also improve credibility and help gain high-value credit forms such as a loan against property from reputed financers.
How to pay property tax online
Individuals can leverage their residential or commercial property equity by gaining substantial loans from lending institutions. Mortgaging a property located in a prime location will also help a borrower gain affordable interest rates and customised offers.
For instance, many lending institutions extend pre-approved offers that make loan applications simpler. Such offers are available on various financial products like a loan against property, home loans, etc. Individuals can check their pre-approved offers online by entering their name and contact number.
However, LAP borrowing is a crucial decision that requires a planned approach. It is important to understand how is a loan against property processed and its eligibility criteria for an informed decision.
These are some crucial factors that a taxpayer must know about the SDMC property tax payment.
Additional Read: Check Your Loan Against Property Eligibility for Quick Benefits