Municipal Corporation of Gurgaon Property Tax

6 minutes

Dealing with property taxes can be challenging, particularly when it involves the Municipal Corporation of Gurgaon (MCG) property tax. This tax is vital for funding city services and infrastructure, impacting all property owners in Gurgaon.

It’s essential to understand how to calculate the tax, explore available payment options, and identify potential rebates for effective financial management.

Our guide provides essential insights into MCG property tax, helping you avoid penalties and grasp its implications for home loans. Stay informed and handle your property tax responsibilities smoothly for a hassle-free experience.

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What Is the Municipal Corporation of Gurgaon Property Tax?

The Municipal Corporation of Gurgaon (MCG) imposes a mandatory property tax on property owners in Gurgaon. This tax funds essential services like road maintenance, waste management, and public infrastructure development. Whether you own residential, commercial, or industrial property, timely payment is crucial to avoid penalties and maintain compliance.

Key Factors Influencing MCG Property Tax 

Several factors determine the MCG property tax amount:

• Property Type: Tax rates vary between residential, commercial, and industrial properties.

• Property Size: Larger properties face higher tax rates. For example, the authorities charge residential houses per square yard, starting at Rs 1 per square yard for smaller plots.

• Usage: Whether a property is used for residential or business purposes directly impacts the tax rate. Commercial and industrial properties generally incur higher taxes.

• Vacant vs. Occupied: Vacant land may have lower or exempt tax rates compared to occupied properties.

• Location: Properties in prime areas or special zones may have higher rates.

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MCG Property Tax Rates 2024

Understanding the current tax rates is crucial for property owners in Gurgaon. Here’s a detailed breakdown of the MCG property tax rates for 2024 across various property types:

Property Type	Area	Tax Rate
Residential Properties (Houses)	Up to 300 sq. yards	₹1 per sq. yard
	301 to 500 sq. yards	₹4 per sq. yard
	501 to 1000 sq. yards	₹6 per sq. yard
	1001 sq. yards to 2 acres	₹7 per sq. yard
	Above 2 acres	₹10 per sq. yard
Vacant Plots (Residential and Commercial)	Up to 100 sq. yards	Exempted
	101 to 500 sq. yards	₹0.5 per sq. yard
	Above 501 sq. yards	₹1 per sq. yard
Commercial Properties	Up to 1000 sq. feet	₹12 per sq. foot
	Above 1000 sq. feet	₹15 per sq. foot
Industrial Spaces	Up to 2500 sq. yards	₹5 per sq. yard
	2501 sq. yards to 2 acres	₹6 per sq. yard
	2 to 50 acres	₹8 per sq. yard
	Above 50 acres	₹9 per sq. yard

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How Is MCG Property Tax Calculated?

The Municipal Corporation of Gurgaon (MCG) has streamlined the property tax assessment and payment process to make it easier for residents. In 2013, MCG introduced a system allowing citizens to self-assess their property tax liability. This system is designed to simplify the process by letting property owners calculate their own taxes based on applicable rates for their specific type of property.

The tax calculation system considers:

• Size of the Property: Larger properties incur higher taxes.
• Use of the Property: Different rates apply depending on whether the property is residential, commercial, or industrial.

For cities like Gurgaon and Faridabad, which are categorised as Type A1 cities for property tax, the rates for similar property types are consistent across both cities. This categorisation ensures uniformity in tax rates for properties of the same type. It makes it easier for property owners to understand and predict their tax liabilities. This approach helps property owners assess their tax obligations accurately and manage payments effectively.

How to Pay MCG Property Tax?

Paying your MCG property tax is straightforward, with both online and offline options available to suit your preferences. 

MCG Property Tax Online Payment

• Visit the Official Website: Go to the Municipal Corporation of Gurgaon’s official website.

• Find the Property Tax Tab: Look for and click on the “Property Tax” tab on the left side of the screen.

• Log In: Enter your login type and mobile number to access your account.

• Enter Property Details: Provide either your unique property ID or your property address, locality, and owner’s name.

• Review Tax Details: The system will display your tax details. Ensure you review these carefully.

• Make Payment: Proceed with payment using a credit/debit card or net banking.

• Save Receipt: After payment, a receipt will be generated. Save it for future reference.

• Offline Option: If online payment is inconvenient, you can opt for offline payment methods.

MCG Property Tax Offline Payment

• Visit Collection Centres: Go to any Property Tax Collection Centre or Citizen Facilitation Centre throughout the city.

• Bank Payment: Alternatively, visit any Oriental Bank of Commerce branch in Gurgaon.

• Verify Details: At the centre, present the necessary property details for verification.

• Receive Receipt: After making the payment, you will receive a receipt.

• Payment Deadline: Ensure payment is made by July 31st of the respective assessment year to avoid penalties.

• Rebate: Pay before the deadline to receive a 10% rebate on the tax amount.

• Late Fees: If payment is delayed, an interest of 1.5% per month on the outstanding amount will apply.

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Rebates on MCG Property Tax

Taking advantage of available rebates can significantly reduce your property tax burden. 

Early Payment Rebate

• Eligibility: Pay your property tax before the deadline of July 31st each year.
• Rebate Amount: Receive a 10% discount on the total tax amount if payment is made within this period.

Make sure to pay on time to benefit from this rebate and reduce your overall tax liability.

Penalties and Consequences of Late or Unpaid MCG Property Tax

Timely payment of MCG property tax is essential to avoid financial penalties. Missing the deadline has the following consequences:

• Interest on Late Payments:
  • Rate: A monthly interest rate of 1.5% is applied to any outstanding balance.
  • Calculation: Interest compounds on the unpaid amount, increasing your total liability over time.

• Penalties:
  • Additional Fines: Failure to pay by the due date results in extra fines and penalties, exacerbating your financial burden.

• Impact on Credit:
  • Credit Score: Unpaid property tax can adversely affect your credit score. This makes it more challenging to obtain loans or credit in the future.

MCG Property Tax and Its Impact on Home Loans

MCG property tax significantly affects home loans:

• Loan Approval: Lenders consider your property tax status when approving loans. Unpaid taxes or high amounts can hinder approval.
• Loan Terms: High or unpaid property taxes may limit your borrowing capacity and result in higher interest rates.
• Escrow Accounts: Many lenders require an escrow account for property taxes to ensure timely payments and avoid arrears.
• Arrears Risk: Persistent tax arrears can lead to legal actions or liens, potentially affecting your home loan and property ownership.

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Conclusion

Managing your MCG property tax effectively ensures compliance and avoids financial penalties. By understanding tax rates, payment methods, and available rebates, you can optimize your tax management. 

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Frequently Asked Questions