A Quick Guide to Pay Property Tax Bill in India

According to a recent survey, the real estate sector in India attracted investments ranging up to Rs.4,10,000 crore since 2018. This indicates there will be greater demand for housing solutions in the next few years. Hence, as a homeowner, you should be aware of the concept of property taxes and how your property tax bill is calculated.

What is property tax?

In India, every owner of a property is required to pay a government-mandated fee to the local municipal corporation. The concerned property has to be under the jurisdiction of the said municipal corporation.

Property tax is levied on real estate consisting of buildings or even land attached to buildings. Vacant plots of land are generally not taxed as they are anyway considered as income from other sources. The different types of property that are liable to be taxed are –

Land

Land in its most basic form; without any construction on it.

Improvements made on land

This indicates buildings or commercial structures made on land.

Personal property

Personal property includes human-made objects such as automobiles like cars, buses, etc. and industrial equipment such as cranes, large scale machines etc.

Intangible property

Intangible property denotes assets which have no physical substance such as trademarks, copyrights, brand recognition, etc.

Collecting taxes on these types of property is the duty of the municipality of the particular area the property is situated in. Purchasing a property with a long-term loan is among the most important financial decisions of your life. After buying a house, paying your loan EMIs is not the end of your expenditure. Hence, individuals should consider the payment of property tax while purchasing a new house.

On a similar type of property, the municipal tax may vary from state to state. The location where your property is situated is an important factor that determines the amount of property tax. There is no fixed method of calculating property tax but the most common method of calculation, which is also followed by NDMC property tax, is the UAS or Unit Area-value System. In mathematical terms, the formula to calculate tax by the UAS method is –

Property tax = base value of property x floor factor x age factor x carpet area x category of use factor.

How to pay property tax?

With the emergence of online tax payment facilities, you are not required to visit the office of your local municipality and bear through long queues to pay property tax. However, before opting to pay your house tax online, you need to be aware of some important details regarding your property, which are –

Market value of the property.

Type of property and which category it belongs to such as residential, non-residential, commercial, etc.

Property dimension, number of floors, built-up area of each floor, etc.

After learning the above details of your property, you should be able to pay your tax online if your local municipal corporation has made it available.

Online payment procedure

Just like when you learn how to apply for a loan against property online, you can pay your house taxes online by following these steps –

Step 1

You need to visit the official webpage of your municipal corporation, under whose jurisdiction, the concerned property is located.

Step 2

On visiting the webpage, navigate to the property tax payment section and click on the pay tax option.

Step 3

Now, you need to select the form as per the category of your property and choose the correct assessment year for which the house tax is calculated.

Step 4

Next, fill-up the form with accurate information and attach the necessary documents as required.

Step 5

Submit the form and choose your mode of payment among various options offered by NDMC such as credit/debit card, net banking, etc. Download the receipt for future reference.

Considering the above steps, you can pay your house tax online, which is as easy as applying for a loan against property online to start your business.

Your property tax bill along with the payment receipt assures credibility when you are mortgaging your property while availing a loan from financial institutions and reputed HFCs such as Bajaj Housing Finance Limited. This HFC also brings forth pre-approved offers that make availing a loan against property, quick and easy.

Pre-approved offers make the application process simpler for borrowers and less time-consuming as well. Such offers are also applicable on numerous other financial products such as home loans, personal loans, etc. Check your pre-approved offer by providing your name and contact number.

The land tax allocated by our government is used for public welfare. Other taxes like water tax, drainage tax, electricity tax, etc. also fall under the same category. Make sure you duly pay the related taxes on your property to avoid the need to pay a lump sum amount in the future.