In India, the property is considered a source of revenue. This is why, just as you pay income tax, you also need to pay property tax to the government. The property that is taxed includes buildings or land attached to these buildings. These buildings could fall under 3 categories-
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- Residential houses
- Offices
- Factories
What happens to land that that is left vacant you ask? Well, they don’t fall under the property tax bucket. This doesn’t mean that they don’t get taxed, rather they are taxed for incomes from other sources. Property that belongs to the government and foreign mission properties are not taxed as well.
How Property Tax is Calculated
Property is vastly different in each region of the country, this is why the government puts local bodies, such as Municipal Corporations in charge of the local tax.
- The state decides the amount to be paid based on various factors such as:
- The basic value of the property (this forms the base amount of the tax)
- The size of the property
- The location of the property
- The occupancy status of the property
- The covered area and quality of construction of the property
Steps To Calculate Your Property Tax
It might seem like a scary and daunting task to try and calculate your property tax, but honestly, it’s not! Just try and stick to the basics and you’ll be just fine.
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First you need to figure out the value of your property (land+building).
Second try and figure out the estimated property tax in your area by your municipality.
Third, if you’re a senior citizen you might get a few exemptions, talk to your local tax authorities to find out other possible deductions that you could be eligible for. Each state has a simple online portal that makes property tax payment simple and hassle-free.
If you’re looking to buy a new home trust NoBroker to help in the right way, click below to find the perfect house for you. Remember paying your property tax is mandatory and if you don’t, it could lead to serious punishment by your local authorities.
I don’t know about the types of taxes in detail, but from this post I learned about all the details of property tax in India. So, thank you for this kind of information. I hope you will post more details in your next post as soon as possible.