Here’s how you can calculate your house tax in India 2020-2021

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 -

 

1. 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.

 

2. 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.

 

3. 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.

Share this Blog & your thoughts with us in the comments below!

Property Taxes – Everything you need to know about Property Tax Online Payment

Tax! This is a word that scares the common man. Taxes are of various types. Every person dreams of owning their home in a metro city, like the apartments in Bangalore. However, no dream comes without a tax. Whether you dream of starting your own business or buying your own home, tax is what you pay to the government as a mandatory financial charge. Income Tax, professional Tax, property tax are few of the many types of taxes a citizen has to pay in order to earn money in that particular country, practice their profession in a state or purchase a property of their choice, respectively. 

Failure to pay tax is punishable by law. Over the years many changes have happened through the Property Tax Bill. Nowadays, the payment and management of tax is easy and accessible because of property tax online payment. In this article, let's understand property tax, its characteristics and calculation. 

●      What is Property Tax?

Property Tax is also called House Tax. It differs from one municipal authority to another. For instance, property Tax for a 2 bhk flat in Bangalore, depends on the municipality law and regulation of that particular region in Bangalore. It is levied on real estate owners. 

●      Property Tax calculation

Whether you plan to purchase a 1 bhk or a 2 bhk flat in Bangalore, knowing how to calculate property tax is very crucial for good financial planning. Capital value system, Annual Rental value system and Unit area value system are the different types of ways to calculate property tax. Unit area system is paid as per the property unit price, the annual rental system depends on yearly rent and the capital value system directly reflects the market value of the property. In the technological online age, property tax online payment has become an easy way of paying your taxes. 

●      Property Tax characteristics

This is the tax which is generally used to maintain the civic amenities of that area. Property for apartments in Bangalore will be used for the maintenance of the civic amenities in that area. Civic amenities maintenance through property Tax includes cleaning roads, sewage areas, lighting, parks, various other residential and commercial infrastructure amenities etc. 

Taxes are a mandatory element. Proper tax planning and payment can avoid the overdue charges that you will be liable to pay if property tax is not paid on time. This property tax guide will help you to plan your tax management wisely.

Share this Blog & your thoughts with us in the comments below!