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Property Tax in India: Calculation and Region-wise Rates
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Every state has its own policies for charging property taxes and every state property tax is different from each other somehow. Let's understand what is property tax and what are the different property tax rates in the country.

Introduction

Property tax or house tax is the system of India which is charged by us annually for possessing our own property or keeping our own property/houses/homes. Jokes apart property tax of India is the fee that is levied on every land whether it is an office building, Property rented to others which comes in the jurisdiction of Municipal Corporation. In very simple words tax is basically for the landowners of the country who possess a certain area of land or obtain any kind of income from house property or any income from any property. Property tax highlight as the tax system for the real estate.

To make the topic more clear and graspable it could also be seen as the fee which we pay to our government for the betterment of fire safety measures, for the police, schools and all other public beneficial utilities. It could also be seen that it is the fees that are charged indirectly for the betterment of the country and benefits given to the citizens for free. From the facts gathered from the authentic sources the government uses the tax for the services offered for the general public like Water, Drainage, Roads repairing, Schools construction, buildings, sanitation, etc. Property tax is charged basically on property development property improvements and all. Article 289 of the constitution allows the union of India to levy tax on property and income of the state.

 

Who are Taxpayers?

Every person who owns the property according to constitutions right to property act is required to pay the tax. Each state has its own annual tax charging policies depending upon the area, overall value and cost of the property whether it is the business property or the residential property the tax is levied by the same policies. It is not like business property will be charged by a different policy and residential or personal property from the other. They all are calculated in the same way.

 

How is Tax calculated?

The tax calculating scheme is discussed under:-

Property tax = Base value x Built-up area x Age factor x Type of building x Category of use x Floor factor

On the land basis. tax is calculated under a few terms-

  1. Land in an agricultural area
  2. Urban land
  3. Land with building in a rural area
  4. Land with building in urban areas

 

How is tax charged?

The indicated guideline of property or house tax in India is that it can be paid on an annual or on a semi-annual basis. The computer and internet era has made everything quicker and user-friendly. The tax can be paid online and offline as well. For the offline process, the venue must be known to the payers and online mode is more user-friendly than offline mode all must be taken care of is the website and fast connecting internet.

 

Is the property tax the same in every part of the country?

No, Every state has its own policies for charging property taxes and every state property tax is different from each other somehow. According to article 246 of the Indian constitution, it is parliament and state legislature decisions to decide the legislative powers including Taxations.

 

Region-wise discussion on different States tax Scheme

1. Property Tax Mumbai or MCGM Property Tax or NMMC Property Tax (Navi Mumbai Property Tax)

Mumbai earlier called Bombay the city of dreams is famous for its Bollywood culture, fast-paced and its unique business lifestyle. Its picturesque beauty makes the price of the property so costly. The city highlights different tax systems in itself.

 

Special Highlights

  1. Residential properties up to 500sq ft in the specific area is exempted from property tax. This is exclusively decided by the Maharastra cabinet.
  2.  Cabinet also decided to remove tax from the properties that have their carpet area in the range of 500sqft.
  3. The recent proposal has been made for the depositors in which 60% concessions is offered who have the carpet area between 500sqft to 700sqft
  4. According to some authentic sources, chief minister Devender Fadnavis decided the whole scenario for waiving off the tax by some special amendments.

 

Payment method

For the online payment of the property taxes, payers should have access to the internet and they should log on to the official BMC site on the internet and if the payer opts for the offline mode he should visit the nearest assistive revenue office for the deposit in person.

 

2. Property tax Pune or PMC Property tax

According to some genuine sources, Pune also called Poona earlier famous for its industrial and its fascinating overview when the glamour of the city lies within has its own tax system and its special features. Its tax system differs from the other states. The government takes many initiatives for the tax payer’s which is discussed in the given paragraph.

 

Special Highlights

  1. Pune tax charging services has some interesting rebates scheme for the women and ex-servicemen acquired properties
  2. Another point that is different from other states is the time period offers. The tax demanding authorities offers 10% discount for the citizens who clear their tax dues between April 1 and May 31
  3. They offer a 5% discount as well for the payers who have their tax exceeding the amount of 25k on the above-mentioned dates (April 1 to May 31).

 

Payment method

It can be paid in both online and offline modes. Citizens can log in on the official site of PMC for online transactions via multiple payment options. The property tax receipt can also be downloaded from the same and for cash deposits, citizens should face the burden of reaching the venue at the assigned assistive places.

 

3. Property tax Delhi or MCD Property tax or EDMC Property tax (East Delhi Municipal Corporation Property tax) or SDMC Property Tax (South Delhi Municipal Corporation Property Tax)

Delhi also called New Delhi the trading capital of India also has some delighted population with a business-orientated lifestyle which is beautiful and lavish. The rate of property in Delhi is always fluctuating because of the floating market conditions. The property tax of Delhi is divided into three main areas.

1. South Delhi

2. North Delhi

3. East Delhi

 

Special Highlights

  • If the property tax is paid in a single installment during the first quarter of the year the depositors will get a 15% rebate on the total tax amount.
  • 10% rebate is given annually to DDA/CGHS flats up to 100sq meters
  • 30% rebate is offered to senior citizens, Women, physically challenged only on a single property.

 

Payment method

Each & every part of New Delhi has its own specific system for the online payment of the taxes in the below-mentioned portals where multiple payment options are made for the easy transactions. How to make payments using the portal is discussed further. MCD website offers three main links for the online payment of taxes:

  • South Delhi municipal corporation (SDMC)
  • North Delhi municipal corporation (NDMC)
  • East Delhi municipal corporation (EDMC)

 

4. Property Tax Chandigarh

Chandigarh the city beautiful is the first planned city of India. The city always in trending because of its clean and safe environment and government charges tax on the normal criteria on residential and business properties but some of its special characteristics are:

 

Special Highlights

1. No tax shall be levied on Residential lands and Building up to 300 Sq. Yards.

2. Persons, who had served, or are serving, in any rank, whether as a combatant or a non-combatant, in the Naval, Military or Air Forces of the Union of India. 

3. Widows

4. Disabled persons, who are as if being assesses entitled for the time being to the benefits of deduction under Section 80U of the Income Tax Act, 1961.

5. There is an introduction of self-assessment scheme is implemented in the systems where the depositor will get a rebate of 20% if they pay the tax within the period of 60days.

 

Payment method

It can be paid in both online via Esampark website and official Chandigarh municipal corporation website and offline as well by reaching in person at of Municipal corporation assigned venue.

 

5. Property tax Hyderabad or GHMC Property tax

A hi-tech destination, Hyderabad is also known as the food capital and famous for its fascinating pearls. The place is famous for its trending lifestyles and ravishing venue and architecture. The tax system’s special highlights are given below.

 

Special Highlights

  • GHMC conducts a lucky draw for the taxpayers of Rs 20000 paid to only one lucky customer.
  • The government has taken the initiative to promote green buildings. The owners who own rainwater harvesting facilities and generate power using solar panels installation f which will receive tax benefits and incentives.
  • Military servicemen or ex-servicemen are 100% exempted from the tax.
  • Religious places recognized educational institutions are 100% exempted from the tax.

 

Payment method

Tax payment can be done at e Seva counters, citizen services available at online payment portals. Offline payment can be made by DD, cheques and by going to the state bank of Hyderabad branch.

 

6. Property tax Madhya Pradesh

Madhya Pradesh the city of music also called the place of the ancient heritage and history is a vast area place which highlights the glory by its monuments and palaces. The cost of property in some parts and the overall value of the place is incredibly high as compared to other states.

 

Special Highlights

As per section 135 of the municipal corporation act, a rebate of 6.25% is allowed at a one-time payment of the taxpayers before the due date.

 

Payment method

The taxpayer can make the property tax payment online by visiting the official website of e-Nagar Palika and other offline services are offered via reaching in person at the assigned venue.

 

7. Property Tax Chennai or Chennai Corporation Property Tax

Chennai formerly called Madras a place with its historic landmark and beautiful beaches. The venue excites tourists by its glamour unique culture, exciting sports, festivals and history, and of course the great Mr. Rajnikant. The government makes so much effort for the tax charging smoothly and excites its payers via various initiatives.

 

Special Highlights

  • 10% library cess is calculated from the General Tax of Property Tax.
  • 20% rebate over the Monthly Rental Value is provided for semi-permanent buildings (that are tiled, thatched, etc. except terrace roofing).
  • 25% rebate over the Monthly Rental Value is provided for owner-occupied residential buildings.
  • 10% rebate over the Monthly Rental Value is provided for owner-occupied commercial portions.
  • 1% depreciation is provided for each year for buildings over 4 years old (subject to a maximum rebate of 25%)

 

Payment method

Online arrangement for the fast transactions is done on the website of the municipal corporation and offline method arrangements are done by reaching the designated place of the corporate office. 

 

8. Property tax Bangalore or BBMP Property Tax

Recently converted Bengaluru from Bangalore the third most populated city of the country known for its tourism, lakes shopping, food, and culture. The rate of the property is so high because of the surroundings of the place. Special highlights are given as follows.

 

Special Highlights

  • 5% rebate can be availed if the full amount is paid before 30th May of every year
  • Property tax can be paid in two installments, then no interest on first installments if paid by 30th may, and the second installment can be interest-free if paid till 30th November.
  • If depositors have an assigned PID number, They are eligible to pay tax through cheque, DD, or by using Credit/Debit card at the office of the Assistant Revenue Officer or at BBMP help Centre.

 

Payment method

The mode of payment is offline as well as online. Citizens can pay taxes online by visiting the corporation’s official site and offline by reaching the destination.

 

Some prominent places with the lowest property tax rates are:-

  1. South Carolina – The average property tax rate is 0.574%.
  2. Arkansas: The average tax rate is 0.619%.
  3. Delaware: The average state property tax rate is 0.529%.

 

Conclusion

All the prominent places have their own tax system which is uniquely different from each other. The tax system is exclusively decided by the municipal corporation and could vary from time to time and places to places. The policies, terms, and conditions change annually. If we think from a very different perspective it is just a charge for the betterment of the city like we don’t pay for our fire safety, we don’t pay for public roads, we don’t pay for government schools, Public parks nor any city maintenance charges and many other facilities are provided by our government for free and when we don’t pay for such things our tax payment could act as the support from our side to our government.

If observed from the Indian point of view the tax system of every state has some negative and positive aspects depending on the state and their authorities.

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Shreyas Aravind is a mechanical engineer by profession. He is a good orator and writes with passion. Shreyas Also a vivid learner and an eager enthusiast.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

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Shreyas
Shreyas
Shreyas Aravind is a mechanical engineer by profession. He is a good orator and writes with passion. Shreyas Also a vivid learner and an eager enthusiast.

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