Introduction to Property Tax




Property Tax
Property tax - also known as house tax - is similar to income tax but more expensive. It is a tax that is charged by the government on all tangible real estate that an individual owns. These assets could include residential homes, office buildings and premises rented out to third parties.

What is Property Tax?
Taxes are a government's principal source of revenue. Every property is a taxable asset, and the property tax is an annual sum paid to the government by the property/landowner. Depending on government policy, this tax could be paid to either the local state government or the Municipal Corporation.

Types of Property
• Property in India is classified into four categories, which help the government estimate tax based on certain criteria. The different property divisions in the country are mentioned below.
• Land – without any construction or improvement in its most basic form
• Improvements made to land - Buildings and godowns are examples of immovable artificial structures.
• Personal property – Cranes, vehicles, and buses are examples of movable man-made items a non-tangible asset



Disclaimer: The opinions presented above are based on industry reports and linked news stories and are solely for informational purposes. CURA Property Services does not guarantee the information's accuracy, completeness, or reliability, and will not be held liable for any actions taken as a result of the information.


       


    How to Pay Property Tax Online?





Most municipal corporations provide the option to pay property tax online, streamlining the process and saving valuable time. The internet has made many aspects of our lives easier and more convenient.

Steps to Pay Property Tax Online
Step - 1: Log in to the official website of their municipality/city corporation.
...Step - 2: Choose the tab indicating property tax and navigate to the payment option.
Step - 3: Choose the right form (either 4 or 5), based on the category under which
• an individual’s property falls. These forms are used to determine if any changes have been made to a property in question.
Step - 4: Choose the assessment year. This is the year for which property tax needs to be calculated and paid. Most corporations provide an option to clear backlogs in property tax payment.
Step - 5: Individuals will then be required to fill in their property identification number and any other relevant document pertaining to their property (zone under which it falls, property type, etc.) including the owner’s name.
Step - 6: Once all relevant information has been entered, individuals can choose the mode of payment, which could be credit/debit cards or internet banking.
Step - 7: Once payment is made individuals can take a printout of the challan for their reference.

Note: These are the basic steps involved in paying property tax online and could vary depending on the city/town corporation.

Calculation of Property Tax
The formula used for calculating property tax is given below
Property tax = base value × built-up area × Age factor × type of building × category of use × floor factor.

Property tax in India depends on the location of the property in question, with taxes varying from state to state. Different civic corporations use different methods to calculate tax, but the general overview of such calculations remains the same. Tax can be easily computed online, through the official website of the municipal corporation concerned.



Disclaimer: The opinions presented above are based on industry reports and linked news stories and are solely for informational purposes. CURA Property Services does not guarantee the information's accuracy, completeness, or reliability, and will not be held liable for any actions taken as a result of the information.