Owners of property in India are liable to pay property tax. This tax is collected by the Municipal Corporation of a particular state. This differs from state to state. Nowadays, Property tax online payment can be done very easily. Let's understand some more points about property tax and how it can be calculated.
Every state has different rules and
regulations when it comes to property tax. Property tax applicable for Apartments
in Bangalore will be different than that of apartments in Mumbai, Chennai and
Delhi.
What is Property Tax?
Property Tax is charged annually by the
Government to property owners. It is charged from the property owners for
different properties. This property can be residential like apartments
in Bangalore and office premises as well. Well, if you are thinking who
collects the property tax it is the Municipal Corporation or local government
as authorized in that area. This property tax bill is basically used for infrastructural activities such as
construction of roads, highways, sanitization etc.
Calculation of Property Tax
Property Tax is calculated for different
locations, states and cities. A general calculation for the same. Base
Value*built up area*age of property*type of property. This value is divided by
building*category of usage*floor factor to get the property tax. This is why
property tax differs for different types of property such as 1 or 2 bhk flat in
Bangalore. The age of property also
becomes an important factor in determining property tax.
Property tax calculation methods
Property tax payment can be done both in
online and offline modes. Property tax online payment is much
easier. Below are a few property tax calculation methods -
- Capital
Value System
As per this method, the property tax is
calculated on the basis of the market value of the property. Where the property
is located makes a major difference in this case too. Percentage of this market
value will be the property tax to be paid.
- Unit
area value system
This calculation is on the basis of the per
unit price of the entire built up area. Land price, usage and location become
important aspects here.
- Annual
Rental Value System
This is the ratable value system. As per this
property tax is calculated on the basis of rental value of property. Landmarks
and amenities are of significance here.
Whether it is a 1 or 2 bhk flat in Bangalore
or elsewhere, property tax needs to be paid and this guide will help you to
understand your property tax in a better manner.
