Learn All About Property Taxes In Indiaby Alisha Antil Financial Blogger
While purchasing a land or house, the cost of the property is not the only expenditure a buyer has to bear. What comes along with property purchase is the liability of having to pay property tax. Property or house tax is a financial charge levied on an individual or an entity concerning the ownership of a particular property.
In India, such tax is levied on all real estate properties including rental houses, residential buildings, commercial buildings, land attached to buildings, and so on. However, one of the exemptions under this tax regime is vacant plots of land which lack adjoining constructions. Only the Pune Municipal Corporation levies tax on the carpet area of vacant land or property.
As per the 44th Constitutional Amendment in 1978, property tax in India is impossible on the possessor of a property, and not its custodian. This tax regime is aligned with the US system of wealth tax. Property owners are liable to pay property tax online or offline on an annual basis.
Unlike most other taxes, the power of imposing house tax lies with the state government or local civic bodies. The task of deciding the valuation method, fixing the rate, and collecting the tax is delegated to the local bodies such as municipalities and panchayats.
In India, civic bodies usually exempt lands or buildings used for religious purposes, cremation, burial, charity, education or heritage. Some agricultural lands are also exempted from property tax.
Details About Property Tax Regime In India
State governments in India collect property tax based on specific terms and conditions. Property in India is divided into 4 types. They are –
Land- In this context, land resembles only the land without any construction or modification. The value of the land is assessed as per the location and amenities for fixing the tax rates.
Personal Property- Moveable objects which are man-made, such as cars or trucks, are included in the category of personal property.
Intangible Property- Patent or royalties which are intangible, yet have ownership come under this category of property.
Improvements Made to the Land- This includes changes or renovation made to a property, such as building a flat or house on an existing plot.
The amount of property tax depends on the location, condition, and other such factors of a property, along with the tax rate fixed by the authorities.
How To Pay Property Tax Online?
Earlier, paying house tax was considered much of an inconvenience as one had to visit the municipal offices and complete lengthy paperwork to pay property taxes. This was not only inconvenient and tiring but time-consuming as well. With the advent of the internet, municipal corporations have facilitated ways through which Indians can pay property tax online.
An individual can pay house or property tax online by following these steps-
Log on to the official website to pay property tax of the concerned municipal corporation.
Select the tab displaying the option of paying property/house tax.
From the available options, select the category under which the property falls.
Provide the details of the identification number and other relevant information.
Once redirected to the payment page, you can successfully pay property tax online.
While purchasing a property, an individual has to plan his finances accordingly, keeping in mind the liability of paying property tax.
In India, one of the most affordable ways to avail of financing and purchase a property is via loans against property. You can utilize the current market value of a property you own to purchase another property at affordable interest rates and various other features. These are secured advances offered by various financial institutions in return for the property which is used as a mortgage. There are several ways in which borrowers can use loan against property.
One of the most reputed HFCs in the country, Bajaj Housing Finance Limited, brings in a range of pre-approved offers on loans. On the whole, these offers make the entire process of applying, approving and disbursal of a loan simpler. Pre-approved offers are available on a large range of financial products including home loans, personal loans, business loans, etc. You can check your pre-approved offers by entering your name and mobile number.
Any and every citizen owning a taxable property within Indian jurisdiction is legally bound to pay property tax online or offline. Individuals can learn about how a loan against property is processed and provide funds to deal with such deficiencies. Refer to leading lenders for the most beneficial loan terms and features.
Created on Dec 26th 2019 06:48. Viewed 366 times.