Property tax is an advance that Municipal Corporation or local governing bodies levies on all tangible realty assets of their respective area. In India, every property owner is liable to pay property tax to help the Government upkeep maintenance of public services.
Property tax online payment makes it easier for taxpayers to clear their annual dues on time.
Let’s know more about this tax in detail!
Government bodies like Municipal Corporations or Panchayat levy a sum on all tangible property of their governing areas. The owners of the properties are mandated to pay the sum annually or semi-annually.
This property tax applies to any property that a person possesses, such as residential, commercial or let-out property. The tax payable depends primarily on the property value, location and the law of that particular area.
Also known as house tax, it is a primary income source for the Government that is further used to repair, maintain and develop the local infrastructures like parks, roads, pavements, etc.
For more convenience, several taxing entities have introduced a property tax online payment facility.
Know the various property tax types relevant in India.
Categorically, property tax is an example of direct tax. However, to simplify the assessment and calculation of property tax online and offline, it is divided into four parts, based on different types of property. Here’s the list.
Depending on any of the type, property tax payment amount is determined in the country.
The next segment shows the property tax calculation process.
Generally, property tax in India is calculated in three different ways.
Annual Rental Value (ARV) - In this process, the gross annual rental value of the taxable property is determined by the Government/Municipality. Cities like Delhi, Chennai, etc., follow this system to calculate tax.
However, first, you need to estimate the yearly property value. For example, residents of Chennai follow the below-mentioned formula.
Rental Value (Monthly) = Plinth Area* Basic Rate per sq ft.
Rental Value (Annual) = Monthly rental value*12- 10%
Capital Value System (CVS) - In this system, the property tax depends on the current property value, which the local Stamp Duty Department fixes. Mumbai follows the formula below to determine the property tax payable.
Following is the property tax calculation formula that is used to estimate the amount payable.
Property tax= base value* property type* age factor*built-up area*floor factor*usage category.
Determine the property value from a particular zone and multiply it with the carpet area of the property.
Unit Area System (UAS) - Here, the property tax depends on the expected return from a property. The cities like New Delhi, Kolkata, Bangalore, etc., follow this system. Following is the process to arrive at the annual value of a property.
Annual Value- Unit Area Value* Carpet Area Value*Use Factor*Age Factor*Occupancy Factor*Structure Factor
Besides, other factors also play a part in determining your property tax bill. The following are some of these -
You can easily get hold of an online property tax calculator that can compute your property tax in a matter of seconds.
Such calculation eventually aids in property tax online payment. However, taxpayers also need to understand the exact procedure for clearing these taxes.
Pay property tax bill online or offline in simple ways. Check it out.
Since the online process is much more straightforward and faster, it is ideal to know how to pay property tax online.
Follow the steps mentioned below to ensure a smooth property tax online payment.
After successful payment, check the property tax status to ensure that all dues have been cleared.
If you are opting for property tax online payment, knowing the tax application number is crucial.
Follow the steps to know the new application number online.
Open the property tax page of your local Municipality.
Click on “GIS-based New PID”.
Find “To Know Your New PID Click Here” at the bottom of the page.
Enter the old application number and click on “search”.
Select name and open “Fetch”
The details will appear on the screen. Check the details for discrepancies.
For more information, click on “View your property in Map.”
Spot the property on Google Map.
Download or save details.
Make necessary alterations at such times. For instance, you can change your name in property tax online if entered incorrectly.
After paying property tax in India, it is essential to keep a copy of the receipt. Follow the steps to save it for future references.
Moreover, paying the property tax on time is also essential to avoid penalty charges levied in case you cross the property tax due date.
|
City |
Last date to pay property tax in 2021 |
|
Delhi- NCR |
30th June |
|
Bangalore |
31st March |
|
Hyderabad |
30th June |
|
Kolkata |
30th June |
|
Nashik |
31st July |
|
Chandigarh |
31st July |
|
Chennai |
30th June |
The official website of Municipalities of every state or area offers taxpayers to check property tax grievances or raise a ticket. Lodge property tax payment complaints as well through the same portal.
The steps are simple to check the complaint status online.
These are the basic information that every property owner should know to ensure timely property tax online payment. Be a responsible citizen and pay the tax on time.
For any further queries, contact the regional tax collecting office and clear any doubts.
Know the office timings as well to avoid waiting for long in a queue!
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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