Property Tax in India

Property tax is a surcharge on real estate, including land, as levied by the Government. In India, property has been classified into four categories:

* Land, which refers to the most basic form property, without any construction or improvement

* Buildings, used for both residential and commercial purposes, built on a piece of land owned.

* Personal property: this refers to property which can be moved around like cranes, automobiles etc.

* Intangible property.

However, property tax is levied on ‘real property’ which comprises land and brick and mortar buildings- both commercial and non commercial. The non commercial buildings which are taxable include factory buildings, residential apartments, office buildings, flats, shops and storage houses.

However, it should be noted that any plot of land devoid of any building or construction, is exempted from property tax. Additionally, properties that belong to the Central government are also exempt from this tax. This might include land, buildings and other tangible and non-tangible properties. Though the property taxation system different from one state to the other in earlier times, the amount has become more or less post the introduction of GST. (the state’s share still remains uneven though.)


How to Pay Property Tax

Filing for property tax is not a hard nut to crack. It can be paid both online and offline. Any property holder can pay the property tax filed against his/her PAN number. Failure of doing might lead to levying of fines of the person.

People can pay their property tax offline by filing their taxes in the Tax Offices, located in every district headquarter of every district of every state. However, one can pay the same amount online as well. The basic steps are mentioned below:


* Visit the official website of your municipality or city corporation and log in.

* Choose the ‘property tax’ tab and navigate to payment options.

* Choose the right form – this will be based on the category your property belongs to.

* Choose the assessment year – this will be the year for which you need to clear your tax.

* Then fill in the owner’s name and property identification number and other relevant details as required.

* Choose your preferred mode of payment and clear your payment.

* Once the payment has gone through, the system will generate a challan. Save the challan on your computer or take a printout for further reference.

Property tax is an integral part of the economy of any country. Thus, it is best to clear taxes within the due dates as late payments can attract fines which is generally a certain percentage of the amount pending. Thus, a clear understanding of taxes and timely payment of dues is important and advisable.

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