How To Pay Property Tax Online- What Is It And Why Do You Need It?
By Pratik Balasaria

Property Tax in India is levied by municipal authorities on real estate that you own. It is calculated on the value of the property. However, the rate of property tax and the manner in which it is evaluated differs from one municipal authority to another. Property tax is levied by the governing authority of the jurisdiction in which the property is located. In this article, we elaborate on what is property tax and the different ways of paying your property tax. We will also discuss how to pay property tax online, how to check property ownership online in India, etc.

In India, the property tax is levied by either the state government or the local civic bodies. It is also known as ‘house tax’ and is imposed on the Possessor of the property. According to the 44th amendment of the constitution in 1978, it no longer imposed on the custodian of the property. 

What is Property Tax?

how to pay property tax online

Property Tax, or House Tax, is the tax imposed on real estate owners by municipal authorities. These are municipal authorities like the Panchayat, Municipality, or Municipal Corporation.

This tax is used by the government for the upkeep and maintenance of local civic amenities. Every locality has some local civic amenities in the area like roads, sewage systems, lighting, parks, and other infrastructural facilities. The property tax is used to keep them in working condition so that people of the area are able to use them for their benefit. 

What is Property Tax Levied on?

The Government levies Property tax on all real estate, including buildings both residential and commercial, attached land, and improvements made to the land. It is however not levied on vacant plots of land with no adjoining building.

Now that we have understood the basics of property tax, let us look at how we can calculate property tax. We will then discuss how to pay property tax online including how to change name in property tax online in the next few sections.

How is Property Tax Calculated?

The municipal authorities calculate Property tax in proportion to the assessed value of the property. There are 3 main ways of calculating Property Tax;

  1. Capital Value System (CVS)
  2. Annual Rental Value System or Rateable Value System (RVS)
  3. Unit Area Value System (UAS)

Let us look at each of these in detail.

Capital Value System or CVS 

As per CVS, the tex is levied as a percentage of the market value of the property. The Government determines this market value. It is dependent on different factors such as the locality in which the property is located. The Government revises and updates market value every year and publishes it yearly. The government of Mumbai follows the Capital Value System. 

Annual Rental Value System or Rateable Value System (RVS)

In this system, we calculate the tax on the yearly rental value of the property. This is not necessarily the actual rent amount that the government collects, rather it is the perceived rental value. The municipal decides this rental value based on the size, location, condition of the premises, its proximity to landmarks, amenities etc. Some municipalities that follow this system are Hyderabad and Chennai.

Unit Area Value System (UAS)

In this system, the tax is levied on the per-unit price of the built-up area of the property. The Government fixes this price (per square foot per month) based on the expected returns of the property as per its location, land price, and usage, and then we multiply this with its built-up area. Municipalities like Delhi, Kolkata, Bengaluru, Patna, and Hyderabad follow this system for property tax calculation.

Let us now look at how to pay property tax online and other ways you can pay your property tax conveniently.

How to Pay Property Tax?

The onus of paying property tax lies with the owner of the property and not the occupant. It is important to know that you must pay property tax annually, and late payment can attract a fine. This fine is in the form of interest on the amount due, which can be up to 2% per month. 

There are different ways to pay your property tax and how to check property ownership online in India.

Paying your property tax offline

 You can pay your property tax at the municipal corporation office of your area. You can also pay your property tax in some cases at designated banks affiliated with the municipal corporation. 

How to pay property tax online 

These days, municipal authority websites allow payment of most municipal taxes online. Once you understand how to pay property tax online, it is much more convenient for you as the property holder. 

How to Pay Property Tax Online for your Municipal Corporation:

You will have the option of paying your property tax online, only if your municipal corporation has made this facility available. If the facility is available and you have the details available, then follow these steps to make the payment;

  1. Go to the site of the municipal corporation.

  2. Go to the page that allows you to pay property tax online.

  3. On that page enter assessment codes and area details as needed.

  4. You may also be asked to enter details such as owner number, old assessment number, and door number.

Once all the details have been entered you will be shown the details of the tax due on your property and you can proceed to make the payment via credit cards, debit cards, or net banking. If you do intend to use net banking then you should remember that only net banking provided by authorized banks will work for property tax payments.

Things you need to know about how to pay property tax online

Have the following details handy before you go ahead and pay your property tax online. These details relate to the classification of your property, its location and its dimensions.

You need the following details:

  • The annual value of the property
  • Classification of the property (residential, non-residential, vacant lot, billboard, shop, etc.)
  • Zonal Classification
  • Dimension of the property
  • Built-up area
  • Number of floors (this will include basements too)
  • Built-up area of each floor
  • Electricity bills
  • Exemptions (certain types of properties, such as care centers for stray animals)

Now you can easily pay property tax online in India

Owning a property in India comes with its set of responsibilities. Paying property tax online and knowing property details are some of the many of those. Many of us use these properties to build our dream homes which bring with them a new set of challenges. Our blogs dive deep to help you in many ways from choosing the best apartments to decorating your home and personalize it. 

FAQs

What is Property Tax?

Property Tax, or House Tax, is the tax imposed on real estate owners by municipal authorities. These are municipal authorities like the Panchayat, Municipality or Municipal Corporation. This tax is used by the government for the upkeep and maintenance of local civic amenities.

Who pays House/Property Tax?

The onus of paying property tax lies with the owner of the property and not the occupant.

How to pay Property Tax online?

You will have the option of paying your property tax online, only if your municipal corporation has made this facility available. If the facility is available and you have the details available, then follow these steps to make the payment;
1. Go to the site of the municipal corporation.
2. Go to the page that allows you to pay property tax online.
3. On that page enter assessment codes and area details as needed.
4. You may also be asked to enter details such as owner number, old assessment number, and door number.

How to check property ownership online in India?

The first step to check property details online is to find the online portal that is applicable for your state. This online portal will help you easily check land and property records online. All major states, which include Gujarat, Maharashtra, Karnataka, Tamil Nadu, Punjab, Bihar, Rajasthan, Uttar Pradesh and Madhya Pradesh have an online portal. All of these states maintain their land and property records online.

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