Ludhiana Property Tax: Rates, Rebates & Online Payment
How Municipal Corporation Ludhiana (MCL) assesses residential property tax, what you owe, the rebates worth grabbing, and how to pay online.
How Ludhiana calculates property tax
Annual value is computed from the collector (ready-reckoner) rate of the plot plus construction cost taken at Rs 500 per sq ft, minus 10% depreciation on construction; residential self-occupied houses of 100-500 sq yd then pay 0.5% of the annual value as yearly tax. Rented and commercial properties are taxed on actual/notional rent at higher percentages. Note: portal — e-payment via eseva.mcludhiana.gov.in / propertytax.mcludhiana.gov.in.
Residential rates: 0.5% of annual value for self-occupied residential houses between 100 and 500 sq yd (higher slab above 500 sq yd); rented residential and commercial properties pay a higher percentage of annual rental value (commercial around 3% of AV under Punjab rules).
Rebates & due dates
10% rebate on the current year's tax if paid by September 30; payment from October 1 to December 31 attracts neither rebate nor penalty.
Late-payment penalty
10% penalty if paid between January 1 and March 31; after March 31 the penalty rises to 20% plus 18% per annum interest on the outstanding tax.
Exemptions
Self-occupied residential plots up to 125 sq yd and very small self-occupied flats (up to ~50 sq yd/500 sq ft) are fully exempt; religious places, cremation grounds and government-notified charitable properties are exempt under Punjab municipal rules.
Recent change: MCL has been running annual amnesty/rebate drives (10% rebate window to Sept 30 reiterated every year, including FY 2025-26) and property-survey drives across its four zones to widen the tax net.
Pay online
Pay directly on the official MCLportal — you'll need your property identification number (printed on any previous receipt or demand notice).
Official MCL property-tax portal →Frequently asked questions
How is property tax calculated in Ludhiana?+
Ludhiana uses the Annual Value system (Punjab formula based on collector rate of land plus notional construction cost, not pure rental ARV). Annual value is computed from the collector (ready-reckoner) rate of the plot plus construction cost taken at Rs 500 per sq ft, minus 10% depreciation on construction; residential self-occupied houses of 100-500 sq yd then pay 0.5% of the annual value as yearly tax. Rented and commercial properties are taxed on actual/notional rent at higher percentages. Note: portal — e-payment via eseva.mcludhiana.gov.in / propertytax.mcludhiana.gov.in. Current residential rates: 0.5% of annual value for self-occupied residential houses between 100 and 500 sq yd (higher slab above 500 sq yd); rented residential and commercial properties pay a higher percentage of annual rental value (commercial around 3% of AV under Punjab rules).
How do I pay Ludhiana property tax online?+
Pay on the official MCL portal (linked on this page) using your property identification number — have last year's receipt handy for the ID. Most portals accept UPI, net banking, and cards, and issue an instant e-receipt. 10% rebate on the current year's tax if paid by September 30; payment from October 1 to December 31 attracts neither rebate nor penalty.
What happens if I pay Ludhiana property tax late?+
10% penalty if paid between January 1 and March 31; after March 31 the penalty rises to 20% plus 18% per annum interest on the outstanding tax.
Who is exempt from property tax in Ludhiana?+
Self-occupied residential plots up to 125 sq yd and very small self-occupied flats (up to ~50 sq yd/500 sq ft) are fully exempt; religious places, cremation grounds and government-notified charitable properties are exempt under Punjab municipal rules.
Is property tax deductible from income tax?+
Yes, for let-out property: municipal taxes actually paid during the year are deducted from gross annual value when computing income from house property. For self-occupied property there's no separate deduction, but paying it keeps your municipal records clean for any future sale.
Sources
Verified July 2026. Municipal rates and rebate windows change every budget cycle — confirm on the official portal before paying.