Sub: - Frequently asked questions on Property Tax

S.No Questions Answers

1 Why is the Property Tax levied? Under Section 87A of Haryana Municipal Corporation Act,
1994, property tax can be imposed on all properties located
within the limits of Municipal Corporation Gurugram. Power
to levy taxes is derived directly from the Constitution of
India. Article 243X specially empowers municipal bodies to
levy and collect taxes and the action of the Municipal
Corporation in levying property tax as a compulsory levy is in
consonance with the law laid down by the Supreme Court of
India.

2 How do I read my Property Tax All the property tax notice/bills with calculation have been
notice/bill? uploaded on the website i.e. www.mcg.gov.in. Assessee can
download the same from MCG website. MCG has also
separately sent bills to all owners/occupiers of property in
area of Municipal Corporation. For additional information
please refer to Images 1& 2at the end of this document.
3 How do I calculate the taxable Calculation formula is available on the MCG website. The
area? calculation formula is based on whether the property is
classified as residential, commercial, industrial or
institutional. The notifications of Government in Urban Local
Bodies Department at URL, provide the basis for charging of
property tax:
http://www.mcg.gov.in/PDF/NotificationRegardingMunicipal
Corporationdated11October2013(English).pdf

Additional notifications are attached as Annexure-I‘A’&‘B’ in

this document

4 What are the features of rebate Every tax payer can avail 25% rebate on due/arrear of
scheme dated 02.02.2017 How property tax up to 2016-17 with complete waiver of
does a property owner get accumulated interest. However, the rebate with interest
benefit from this? waiver is available only if payment is made before
28.02.2017.
1% rebate will be given if the payment is made through
cashless mode viz. Online payments, Credit/Debit cards ot
thru UPI.
5 What if I miss the deadline to The rebate will lapse and interest @18% per annum with
avail rebate scheme? penalty will be charged.

6 What if I miss the last date of Last date for payment under the rebate & interest waiver
payment? What are the scheme is 28.02.2017. Thereafter interest @ 18% per annum
penalties and consequence of alongwith penalty will be charged. The relevant provision of
late or non-payment? interest and penalty is envisaged in Section 87C of Haryana
Municipal Corporation Act, 1994 which is as under:-
87C.Penalties- In case of non-payment of property tax, the
competent authority may impose a penalty equal to the
amount of the tax assessed, subject to a minimum of rupees
one hundred and in case of late payment, interest at the
rate of one and a half per centum per month from the date
 of default shall also be charged.

Non-payment of property tax by invite action under section

130 of HMC Act 1994. Notice for attachment and sale of
immoveable property or motor vehicle has been separately
issued and action under section 130 would be resorted to if
payment is not made by 31.03.2017.
7 What are the various modes of The payment modes are as under:
payment available? 1. Online Payment through MCG website.
2. Cash up to Rs 5000 till 27th Feb, 2017 payable at the
Citizen Facilitation Centers of MCG
3. Local account Cheque in case payment is above Rs
50,000 till 20th March, 2017 at the Citizen
Facilitation Centres.
4. Bank Draft.
5. Card payments i.e. Debit Card, Credit Card, RTGS
&Paytm.
6. All Axis Bank Branches.

8 What if my property tax is more Property tax payers can submit a formal request for
than expected or calculated? adjustment of excess payment of property tax with the
relevant/supporting documents like:-
a) Size of plot - Conveyance/Sale deed, allotment
letter.
b) Covered/Carpet area - Building plan.
c) Rented Unit –Registered lease deed/agreement.
d) Building use –photograph.

9 Should all All type of properties falling under the MCG limit are liable
unauthorized/unlawful for property tax. However assessment/deposit of property tax
properties and properties in does not confer any right title or interest in the property,
revenue layout that have not owner and occupier as per Section 93(2) of HMC Act, 1994.
been assessed to tax, to pay
property tax?

10 What happens if I short If the property tax is calculated short then the rebate will be
calculate the tax payable? withdrawn and interest will be imposed @ 18% per annum.
Further, penalty may be imposed equal of the tax assessed
which is given under section 87C of HMC Act, 1994.

11 Can I file a revised return? Yes, tax payer can file a revised return but the variation
should not be 10%, otherwise rebate benefits will not be
given and interest @ 18% will be imposed per annum.
Presently rebate scheme is available upto 28th February 2017.

12 Is the Occupier of a building Yes.

also responsible to pay the tax?

13 Can I pay the property tax for Yes, tax payers can deposit the property tax through self-
an individual unit in an assessment under section 87 A of HMC Act, 1994.
apartment for which neither
plan nor occupation certificate
 is obtained?

14 Should I pay the tax from date The tax payers can deposit their property as per Completion/
of issue of Occupation Occupation Certificate of Building, as the case may be.
Certificate?

15 Whether I am liable to pay the Yes, the Assesse is liable to deposit the due property tax for
property tax in case the that period also. Any purchaser or owner of property is duty
previous owner of the property bound to inform the Municipal Corporation of transfer or sale
did not deposit property tax. of property. Failure to inform ensures that liability for
payment of property tax transfers to the buyer of the
property.
16 Whether one self-occupied Yes. Only one self-occupied house in State of Haryana of
residential house in State of these categories is exempted from Property Tax on providing
Haryana of Serving Defence/ of required documents as per Checklist mentioned on MCG
Paramilitary Force Personnel website.
and Ex-Service/ Paramilitary
Force personal and his/her
spouse; family of deceased
soldiers/Ex-servicemen/ Ex-
central Paramilitary Force
Personnel is exempted for
Property Tax.

17 Are industries expected to pay Yes, all industrial units that have not paid property taxes for
property tax for the period 2008-09 and 2009-10 will be charged property tax in
2008-09 and 2009-10 accordance with the calculation norms prevailing then.
Therefore, industrial units can pay property tax for 2008-09
and 2009-10 as per calculation methodology (Annexure-II)for
2008-09& 2009-10 after availing the interest waiver and
rebate scheme.

18 If you have paid property tax In case the property owner has made any payments and it is
but do not find it shown in the not reflected, the same can be corrected by citing
property tax bill, how do I get it Transaction reference number orvia Email to the office of
corrected Zonal Taxation Officer of the concerned zone in which the
property is located.

Zone-wise e-Mail IDs are:

 for Zone 1: zto1@mcg.gov.in
 for Zone 2: zto2@mcg.gov.in
 for Zone 3: zto3@mcg.gov.in
 for Zone 4: zto4@mcg.gov.in

Zonal Taxation Office are located at:

 For Zone 1 and 2: MCG Office, opp. Civil Hospital,
Gurugram
 For Zone 3 and 4: First floor, MCG Office, Plot No. C-1,
Infocity, Sector 34, Gurugram
19 Who can be contacted in case Zonal Taxation Officer of the concerned zone can be
of any issue with the contacted on the e-Mail IDs and Offices located at MCG
classification of property offices as mentioned in point no. 18 above.

Please see Images No. 1&2 to locate your Zone on your

property tax bill and the classification mentioned therein.
Image 1: How to find your property ID or Zone Number on the Tax Bill

Image 2:

Image 2: How to find the classification of your property – Built-up/Vacant Plot Status
(Resi/Coml./Ind./Inst.)

Abbreviations:
 Resi – Residential
 Coml – Commercial
 Ind – Industrial
 Inst – Institutional
Annexure-I ‘A’: Notification dated March 3, 2014
Annexure-I‘B’: Notification dated March 3, 2014
Annexure-II: Calculation methodology for 2008-09 & 2009-10.