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Want to know more about Property Tax ?

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Know More About Property Tax in India

Want to know more about Property tax – What is the Importance, How to calculate and How to make online payment ?

We as a buyer have to pay one time when we buy property and then consecutively we need to pay some kind of tax to government which is called a Property Tax. These taxes collected are helpful in development and maintaining our public and civic properties. So we will let you know importance of property tax, how this property tax is calculated and how can one do online payments of the same.

What is the importance of Paying Property Tax?

As everybody is aware, the municipal committee of area takes care of some civic facilities like cleanliness in the area, proper water supply, maintenance of local roads, drainage etc. So these taxes allows the municipal committed to generate revenue for smooth working of these services. And Property Tax is the one of the major sources of revenue for them.

Calculating Property Tax

Whenever you buy a property tax is to be paid to the municipal committee which is called Property Tax and it might depend on various locations as well as many different factors taken into consideration, like:

  • What is the location of the Property
  • What is the Size of the property.
  • Status of property : under-construction or ready-to-move.
  • Is property owner Male or Female.
  • Age of property owner
  • Facilities given my Municipal Committee in that area

Online Links to Property Tax

How to Calculate Property Tax ?

  • AHMEDABAD: AMC calculates property tax on property based on its capital value.
  • PUNE : PMC has online calculator on the website where you need to enter your location, area, usage, type of property , plinth area of property and what is the construction area, you will automatically get your calculated tax.
  • MUMBAI: BMC calculates  property tax on the formula: Capital value of property x Current property tax rate (%) x Weight for user category 
  • DELHI: MCD uses “Unit Area System” to calculate tax but there is a calculator online where you get details automatically, the formula for same is : Property tax = Annual value x Rate of tax .   
  • GURGAON: MCG has calculator online , you just need to enter your Property ID or name or address , Tax will be automatically calculated and shown.   
  • NOIDA: Property tax is calculated  as a certain percentage of the annual assessed value of the property based on amount and location of the property.
  • CHENNAI: GCC takes these factors into consideration while calculating Tax i.e. Plinth Area of property, Basic rate of the street in which property is, What is the use of property (Either its residential or commercial), What is the nature of occupancy of the property & What is the age of the Building.
  • HYDERABAD: GHMC uses this formula to calculate property tax :  Annual property tax = Plinth area x Monthly rental value per sq ft x 12 x (0.17 – 0.30) depending on MRV and based on slab rate of taxation – 10% depreciation + 8 % library cess.
  • KOLKATA : KMC is calculated using this formula ; Annual tax = Base Unit Area Value x Covered space/Land area x Location MF value x Usage MF value x Age MF value x Structure MF value x Occupancy MF value x Rate of tax (including HB tax)

What are exemptions on Property Tax?

  • Properties belonging to Religious Organizations and government are exempted from Property Tax
  • Senior Citizens
  • Citizens with Disabilities
  • Defence Personnels
  • Families of Martyrs 
  • Educational Institutes
  • Agricultural Properties

Penalties of not paying Property Tax ?

Municipal Committees and Authorities across India impose penalties on delay or nonpayment of Property Tax depending on the location where you own property.  

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Author: NIKITA DAGAR

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