Overview

House tax department overviewprovides an exhaustive information about the house tax department that deals with the collection of the house tax and service charges on private properties. It is imposed on real estate owners by Municipal Corporation, municipality, or panchayat. It is used for upkeep and maintenance of local civic amenities of the area, such as lighting, sewer systems, roads, parks and other infrastructure facilities. We at Your Property Doctorcan help you calculate house tax.

How to Calculate Property Tax?

Basically, there are three ways of calculating property tax:

• Unit Area Value System: Under unit area value system for house tax, the tax is levied on the per unit price of the built-up area of the house. This price is fixed on the basis of the expected returns of the property according to its location, usage, and land price, and is then multiplied with its built-up area.

• Yearly Rental Value System: Under yearly rental value system for property tax, house tax is calculated on the yearly rental value of the house. This is not actually the rental amount being collected. Instead, it is the rental value fixed by the municipal authorities, based on the location, size, proximity to landmarks, condition of the house, amenities, etc.  

• Capital Value System: Under capital value system property for tax calculation, the tax is levied as a percentage of the market value of the house. This market value is fixed by the government and depends on the locality of the house. It is revised and published yearly.  

How to Pay Your House Tax?

• You can pay your house tax at the MC office (Municipal Corporation) of your area, or at the designated banks that are affiliated to the MC. You need to provide Khatha Number or property tax number to identify your property.

• Nowadays, taxes are payable online on the municipal authority websites. This is much easier for the property holder. Certain municipal authorities give exemptions from the payment of the property tax, depending on factors, such as age, location, type of the property, net income of the owner, etc. You should carefully verify with the local administration for such information and assess your tax liability.

• You need to pay your house tax yearly. If you make late payment, a fine in the form of interest will be levied on the amount due, which can go up to 2% per month. As an owner, the responsibility of paying house tax is on you, and not the occupants of the house.