Property tax is a mandatory annual tax paid by a land-owner to the government-mandated local body or the Municipal Corporation. It is based on the total value of the property. The rate of this tax as well as the manner of valuation usually varies between municipal authorities across the country.
These taxes are collected on all tangible real estate properties, including –
However, this municipal tax is not levied on vacant plots that have no adjoining buildings.
Property or house tax is mandatory for owners to pay by and before the mentioned due date.
The taxable amount is calculated by municipal authorities based on the assessed value of a particular property. There are primarily 3 methods that are used to calculate these taxes.
Several municipalities have introduced online portals to help taxpayers pay property tax online. It aids in timely tax payments, helping a property owner maintain seamless and easy- access to records that are used while calculating details like income tax on sale of land and tax on rental income. Timely tax payment also helps in case of applications for secured loans. Borrowers can enjoy loan against property tax benefits of up to Rs. 2 lakh if the funds are utilised in accordance with the end usage criteria suggested in Section 24(B).