The government collects various taxes from a property owner; the most important and well-known is the property tax. The property tax is a crucial source of money for local governments, and it is utilised for city upkeep and maintenance.
Therefore, in this article, we are going to share the essential points which every property owner wants to know about the property tax:
So without any further ado, let’s get started
What Is Property Tax?
The ‘property on which property tax is to be paid is a physical real estate asset owned by anybody. This property might be commercial, residential or a place that has been rented to someone else. The property’s owner is obligated to pay a sum of money to the local government. This sum is determined using a methodology that the state authorities have approved.
The money is to be paid every year. And you should keep the receipt to serve as proof of due diligence when the property is sold. Property tax varies by location and may differ in various cities and municipalities.
The property tax applies to everyone, and no city or town is free from paying it. Even farmers in rural areas also have to pay this fee to the local authorities. A penalty is levied if the sum is not paid.
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How To Pay Property Tax?
You can pay property tax either offline or online. Let’s have a look:
How to Pay Property Tax Offline?
Offline payments are accepted at local municipal offices. On the office premises, you can search for the special counter that takes property taxes. Don’t forget to save the property tax receipt for future reference.
How to Pay Property Tax Online?
Most local governments offer a unique way of paying property taxes online through their site. There may be some exclusions since certain municipalities may not accept online property tax payments (but that is not the case with most municipal bodies). To pay your property tax online, follow the procedures outlined below. –
- Go to your local municipality’s official website.
- Enter your login information. If you haven’t already registered on the portal, then register first and then log in.
- Click the ‘Property Tax’ tab.
- Select your property type and assessment year.
- Fill in the blanks with additional information, such as the property identification number, owner’s name and other pertinent information.
- Check the property amount, select a payment method, and finish your payment.
- For your convenience, you may download or print the challan.
Please remember that the exact processes may differ from one place to another or from one municipality to another.
How to Get a Property Tax Receipt or a Challan Online?
It is mandatory to maintain a copy of the receipt after paying property tax in India. Follow the procedures to save it for later use.
- Go to your concerned Municipal Corporation’s website.
- Log in to your Citizen account using the OTP.
- The details of property tax payments will get displayed on the next page.
- Choose the “Actions” option.
- Select “download receipt” after clicking on “tax paid information.”
- To finish the download, click “Download PDF.”
Why Is It Essential To Pay Property Taxes?
In the event of a property dispute, the property tax receipt serves as proof of ownership. In addition, when a property is acquired, the title must be changed in the local government books. The name can be transferred to the new owners only once all debts have been paid.
If the record is not changed in the municipal records, the former owner’s name will continue to appear on the tax receipt.
You must show that you own the property to get it registered in your name in the local body books. A copy of the latest paid property tax receipt will be on the list of papers you may be required to present.
A property tax receipt is also required when applying for a loan against the property.
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Who Is Liable To Pay The Property Tax?
House owners in India are required to pay the tax. However, if you have been forced to pay the tax as a tenant, you can seek redress in civil court. Furthermore, for tax purposes, the owner includes the considered owner.
What Is The Penalty For Not Paying Tax?
Nonpayment of property tax is a serious offence that can result in harsh penalties and fines. These differ from one state to another. Depending on the regulations, late payments for property tax might result in penalties ranging from 5% to 20% of the due amount. In extreme instances, the government may seize the property.
That’s it! These are the fundamentals that every property owner should be aware of to make timely property tax payments. Pay your taxes on time, like a responsible citizen.
We hope that you will find this piece of writing helpful, as we tried to cover all the possible points about property tax.
In case we missed something, then please let us know.