Guide -How to Pay Property Tax Online in India

The fast-paced lives with ever-expanding daily responsibilities and commitments often lead to making you overlook some finer details, especially when it's about your financial matters. The never-ending hustle and bustle results in unintentional neglect of some essential aspects. One such example that individuals usually forget is property tax. The sheer volume of daily obligations and tasks make it difficult to keep a tab on the various taxes that are required to be paid. However, before you pay or learn how to pay property tax, it is essential to understand what it is. 

Understanding property tax is essential as well as empowering. It is the responsibility of every property owner to understand the applied taxes as these taxes support local services and infrastructure contributing to the well-being of the community. In addition to being a legal obligation, understanding and paying the applicable taxes is also essential to comprehend how they are calculated. Hence, it is not only a fiscal responsibility but also an opportunity to manage your economic landscape. To help you with this, we are here with an exclusive blog that will introduce you to all you must know about property tax in India. 

In this blog, we will take you on a comprehensive journey on property tax in India which will help you unravel the intricacies of what it is, how it is calculated and how you can pay it online. The knowledge you receive after reading this blog will not only demystify the complexities but will also equip you with the right understanding of the process. So, start reading to know all about property tax and how you can enhance your convenience by paying it online. 

What is Property Tax in India?

The owners of real estate properties in India have to pay a property tax which is an annual charge applied on property owners by the Government of India. The authority responsible for collecting property tax can vary from one state to another depending on who is authorised for it- the local government or the Municipal Corporation. This tax is levied on real estate properties and improvements made to them. 

The value of real estate properties are appraised by the Government to assess the tax in regards to its value. Value assessment is carried out by the Municipality of the particular area. They carry out this responsibility to determine the applicable tax. Property tax in India can be paid on a semi-annual basis or on an annual basis. It also varies with location, state and city.

How to Calculate Property Tax?

After understanding what is Property tax, it is essential to know how it is calculated. The following formula is used to calculate it-

Property Tax = Base value x Built-up are x Age factor x Type of building x Category of use x Floor factor

In India, Property tax depends on location of the property. It can vary from state to state depending on varying factors as listed below. 

  • Occupancy status

  • Available amenities

  • Area/ location

  • Construction year

  • Property type (commercial, residential or land)

  • Floor space index

  • Construction type (pukka or kutcha structure, single floor, multi-storied)

  • Property’s carpeted square area

After assessing the above listed factors, the authorities use different methods to calculate property tax. Although different agencies use different methods, the general overview remains the same. 

Different methods for Property tax calculation

The Municipal authorities generally use one of the below listed methods to calculate Property tax. 

  • Capital Value System (CVS)- Followed in Mumbai, this method involves calculating Property tax as a percentage of the property’s market value based on its locality. 

  • Unit Area Value System (UAS)- Cities like Pune, Delhi, Hyderabad, Bengaluru and Kolkata use UAS method to calculate Property tax. Under UAS, the authorities determine the value of the property based on its land price, location and usage. This value is then multiplied with the built-up area to get the tax value. 

  • Rateable Value System or Annual Rental Value System- This method is followed in some parts of Hyderabad and Chennai. It involves calculating the rental value of the property by considering the proximity with amenities and other factors like its size, condition and location. After rental value calculation, tax is calculated.

How to pay Property tax online?

With everything shifting online, people need everything to be available conveniently. It is no different with taxes as property owners often ask how to pay property tax online. If you look for an answer to the same question, do not wander anymore as we have the answer you are looking for. Below is a step-by-step process, explaining how you can pay property tax in India online. 

Step 1- Log in to the City or Municipal Corporation’s official website. 

Step 2- Choose the tab indicating Property tax and then look for the payment option. 

Step 3- Next step is to look for and choose the Property tax online application form.

Step 4- The application form will consist of varying details you need to fill like property type and location. 

Step 5- Now, choose the assessment year and also select the previous years if you have any dues that are needed to be cleared. 

Step 6- Fill the details asked like identification number, plot number and Revenue Survey number. 

Step 7- You will get different payment options at this stage, choose the one suitable to you to pay property tax online. 

Note- The above listed are the basic steps. These steps might slightly vary depending on the city’s corporation.

The bottom line

Taxes are a crucial part of your financial landscape. As a result, you must be very particular about them. If you are a property owner, Property tax is one such tax you need to know about and pay on time. The above guide must have helped you know about it and how to pay Property tax online. If you still have any queries, comment below or visit your concerned Municipal Corporation office.

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