An overview of the Property Taxes in India

property taxes

Property tax is not something new in the country. In the ancient times, Kings levied small taxes on landowners and the money collected was kept in the state exchequer in order to run the kingdom. In the later years, the land revenue formed a major chunk of the British treasury. Gradually, this paved way for a formal tax collection system in the country.

In India, the property is categorized into four groups and this classification assists the government to calculate tax based on certain principles. The various property groups are:

  • Improvements made to land
  • Land
  • Intangible property
  • Personal property

As of now, property tax is paid based on the value of real property, which includes land as well as improvements on the land. It is the responsibility of the area’s municipal authority to do this assessment and find out the property tax, which can be paid either on a semi-annual or annual basis. The tax paid by the common people is used to improve local amenities and activities such as maintenance of parks, road repairs, and maintenance of public schools, etc. The tax differs from place to place and can be different in various cities and municipalities.

If you are an owner of an office space Near NH 24 Ghaziabad or if you are the proprietor of a residential complex, you will have to follow the below-mentioned things to make the payment for tax online:

  • In case you have not filed the property tax return for the last year, the tax for this year will include the dues and return.
  • In case the revised return has been filed for any year, then for the present year, the return is done on the basis of revised return filed.
  • In case the property tax is paid in two instalments for the present year, then use the same form for the second instalment.
  • If you have paid tax beforehand post correcting the tax for the last years’ and in case there is a surplus, the amount will be returned via demand draft or Cheque after proper verification.
  • If you are paying the total amount in one instalment then you are entitled to enjoy 5% discount on overall property tax.
  • In the case of a defaulter, the system will calculate the interest automatically at the rate of 2% per month for the defaulted period.
  • In case you are making payment for last year’s tax, for each preceding year, the payment shall be made after creating a challan.
  • If In case the payment is made through demand draft or cash, a receipt is generated immediately. But in the case of payment through cheques, only after the amount is realized, a receipt can be generated.

Earlier, making a payment for property tax included lots of troubles, but now with the advent of systems that allow you to pay property tax online, the process has become much easier. Most municipal corporations offer the option of paying property tax online, thus restructuring the process and saving precious time of the tax payer.

As a responsible citizen of India, remember that it is your responsibility to pay the taxes on time as otherwise, you may need to pay heavy fines.


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