What Is Property Tax?

Property tax is the money that the owner of the property pays to the local municipal authorities. This type of tax is paid annually or semi-annually. It is a type of direct tax applicable to properties like house, land, real estate, business plots, shops, rented properties, etc.

Property tax is collected to improve local infrastructures such as maintenance of roads, schools and other necessary facilities. There is no fixed amount of property tax. It varies between different locations within the city and between municipalities.

Types of Properties Under Property Tax

To simplify the tax process, properties in India have been divided into four main categories:

  1. Personal Property
  2. Personal possessions, including vehicles.

  3. Land
  4. A land where there is no construction

  5. Improvements and upgrades made to land
  6. Immovable man-made constructions like buildings, real estate

  7. Intangible property
  8. patent, copyrights, investments, etc.
The present state of property tax in India is such that it is to be paid on real property, which includes land and improvements made to the land. Local municipality assesses the value of the property and the assessment determines the amount of property tax.

Calculate Property Tax Online

The amount of property tax depends on the location of your property. Moreover, different corporations use different methods to calculate property tax, but the core part of calculation remains the same all over.

Property is assessed by determining the area, occupancy status, its type, amenities included, year of construction, carpeted square area of the property, type of construction, floor space index. Once the assessment of all the parameters is complete, the authorities can use a formula that they consider fit to calculate tax.

An individual can easily calculate tax online by visiting the official website of the concerned municipal corporation.

How To Pay Property Tax Online?

The process of paying property tax online is simple and hassle-free. All you have to do is –
  1. Log in to the official website of your local municipal corporation
  2. Keep your Property Tax bill handy, as it contains all the pertinent details required to pay the tax online
  3. Choose the option indicating property tax
  4. Input the Property Tax number, Katha number, or Revenue Survey number and select the assessment year
  5. Verify the displayed ownership details and the outstanding property tax
  6. Move to the payment section and make the payment online
  7. Once the payment is made, individuals can take a printout of the challan for their reference.
Note: These are basic steps, but the process could vary depending on the city or corporation.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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