All about ‘Property Tax’
Sep 19, 2016 Legal Guidance
Tax is one important element in India. And people often get all worked up when its 31st July is about to come as then everyone is busy filling up their tax returns. Well, it is highly significant to fill an accurate income tax in order to stay away from any legal issues and hassles.
There are many taxes that will fall under the category of income tax; however in this article, we throw light on the filing of property tax for one’s real estate assets.
Let us have a look-
To begin with; the most basic question is whose answer everyone should know is. What exactly is Property Tax?
Property tax refers to an amount that a person needs to pay every year to the government for owning a property. As a property is an asset to a person, that makes him or her liable to the payment of tax on that particular property or properties. The system of tax on property has been prevailing ever since the middle ages and is considered a highly important part for the government’s earning. One has to make a timely and accurate payment of property tax being a responsible citizen of this country.
Now let us know what are the assets that property tax encompasses of?
There are many taxes that will fall under the category of income tax; however in this article, we throw light on the filing of property tax for one’s real estate assets.
Let us have a look-
To begin with; the most basic question is whose answer everyone should know is. What exactly is Property Tax?
Property tax refers to an amount that a person needs to pay every year to the government for owning a property. As a property is an asset to a person, that makes him or her liable to the payment of tax on that particular property or properties. The system of tax on property has been prevailing ever since the middle ages and is considered a highly important part for the government’s earning. One has to make a timely and accurate payment of property tax being a responsible citizen of this country.
Now let us know what are the assets that property tax encompasses of?
- Land which have constructed buildings
- Land which is free of construction or have no built structures as such.
It’s basically that every real estate asset you own, you are responsible for paying a property tax for the same. The property tax that a person pays is used for the development of the local infrastructure and the amenities of that area.
Next, is how to calculate property tax?
The amount of property tax is different in every city because it is determined by local municipalities. The factors which actually determine the amount of property tax are the base value of your concerned property, built up area, the building type, what is the nature of use and so on. All these parameters are examined by the municipal authorities.
Then comes, is it possible to pay property tax online?
Yes, one can pay property tax online. There are a lot of municipalities which have the system and option of online payment. There are just a few quick and easy online steps. This helps one save a lot of time as well as effort.
Let us then see if there are any exemptions on the property tax?
Next, is how to calculate property tax?
The amount of property tax is different in every city because it is determined by local municipalities. The factors which actually determine the amount of property tax are the base value of your concerned property, built up area, the building type, what is the nature of use and so on. All these parameters are examined by the municipal authorities.
Then comes, is it possible to pay property tax online?
Yes, one can pay property tax online. There are a lot of municipalities which have the system and option of online payment. There are just a few quick and easy online steps. This helps one save a lot of time as well as effort.
Let us then see if there are any exemptions on the property tax?
- For the citizens who are above the age of 80 years are exempted from this tax.
- Some get exemptions based on the property location. For example, if your property is located in an earthquake prone area then you might get an exemption.
- One can claim the deduction on property tax on letting out properties and also self-occupied ones.
Looking for property portal?
Related Articles
-
How to Claim IT Exemption on Relocation Allowance
Jun 03, 2017 -
Buying a House: Make Sure you are Financially Ready
Jan 10, 2017 -
-
See comments (0)
Write a comment
