Everything you Need to know about Property Tax Calculation and Payment

When you buy a property, there are several taxes that one has to pay. Stamp duty and registration charges are one-time payment however, property tax payment is something that the property owner has to pay every year.
 
Calculation of property tax
The property tax levied on the property has to be paid by the owner of the property and is levied on various parameters.

Importance of property tax payment

The property tax is collected by the local municipal body to maintain, clean and provide necessities to the residents. The property tax acts as funding for the authority to provide the services. If the property owner refuses to pay the tax, then the municipal body can cut the water supply to their place or even refuse to provide them with necessities.

Apart from this, the property payment receipt acts as proof of property ownership in case of a property dispute. Therefore, when you buy a property, you must update the property title in the municipality records. Until all the outstanding areas are cleared, the title of the name cannot be transferred to the new buyer.

The documents required to update your name on the municipality documents are sales deed, clearance from the society, application form duly filled, address proof, photography, copy of the receipt and the last receipt of the property tax. When applying for a loan against property, a property tax receipt is an important document.

Establishments like places of worship, foreign embassy, government buildings etc, are usually exempted from property tax payment. 
 

City	E-link to Pay Property Tax
Greater Hyderabad Municipal Corporation	https://ptghmconlinepayment.cgg.gov.in/PtOnlinePayment.do
Pune Municipal Corporation	http://propertytax.punecorporation.org/
PCMC	http://203.129.227.16:8080/pcmc/
Navi Mumbai Municipal Corporation (NMMC)	https://www.nmmc.gov.in/property-tax2
Municipal Corporation of Greater Mumbai (MCGM)	https://prcvs.mcgm.gov.in/
Municipal Corporation of Delhi (MCD)	http://www.mcdpropertytax.in/
NOIDA Authority	https://www.noidaauthorityonline.com/
Municipal Corporation of Gurgaon	http://www.mcg.gov.in/HouseTax.aspx
Amdavad Municipal Corp	http://ahmedabadcity.gov.in/portal/web?requestType=ApplicationRH&actionVal=loadQuickPayPropertyTax&queryType=Select&screenId=1400001
Kolkata Municipal Corporation (KMC)	https://www.kmcgov.in/KMCPortal/jsp/KMCAssessmentCurrentPD.jsp
Bruhat Bengaluru Mahanagara Palike (BBMP)	https://bbmptax.karnataka.gov.in/
Greater Chennai Corporation	http://www.chennaicorporation.gov.in/online-civic-services/editPropertytaxpayment.do?do=getCombo

Property tax calculation
The property tax calculation differs from city to city. We discuss the property tax calculation for the top 9 cities in India:

1. Property tax calculation in Pune
The Pune Municipality Corporation offers online tax calculation on their website. The owner has to enter the details of the property: location, area, usage, type, total plinth area, and construction year to find the amount payable as property tax.
 
2. Property tax calculation in Bengaluru
To calculate the property tax, the BBMP follows the unit area value method.
 
Where, G = X + Y + Z and I = G x H/100
(G = Gross unit area value; X = Tenanted area of property x Per sq ft rate of property x 10 months; Y = Self-occupied area of property x Per sq ft rate of property x 10 months; Z = Vehicle parking area x Per sq ft rate of vehicle parking area x 10 months; H = Percentage of depreciation rate, which depends upon the age of the property).
 
3. Property tax calculation in Mumbai
To calculate the property tax applicable, the BMC uses the capital value system.

The capital value of property x Current property tax rate (%) x Weight for user category.
 
The residential properties up to 500 sq ft are exempted from paying the property tax in Mumbai.
 
4. Property tax calculation in Delhi
The municipal authority of Delhi uses unit area system to calculate the applicable property tax.
Property tax = Annual value x Rate of tax
Annual value = Unit area value per sq metre x Unit area of property x Age factor x Use factor x Structure factor x Occupancy factor
 
5. Property tax calculation in Chennai
To calculate the applicable property tax, the Chennai municipal corporation uses a reasonable letting value system. The factors that are taken into consideration are Plinth area, Age of building, Nature of occupancy, the basic rate of the locality in which the property is located, usage of the building.
 
6. Property tax calculation in Hyderabad
The municipal corporation of Hyderabad adopts the slab rate method for the taxation of residential properties.

Annual property tax = Plinth area x Monthly rental value per sq ft x 12 x (0.17 – 0.30) depending on MRV and based on slab rate of taxation – 10 per cent depreciation + 8 per cent library cess.

7. Property tax calculation in Kolkata
The annual property tax is calculated using the UAA system.

Annual tax = Base Unit Area Value x Covered space/Land area x Location MF value x Usage MF value x Age MF value x Structure MF value x Occupancy MF value x Rate of tax (including HB tax)

(Note: HB tax refers to Howrah Bridge tax, which is applicable on the properties lying in specific wards.)
 
8. Property tax in Ahmedabad
Capital value method if used to calculate the property tax in Ahmedabad
Property tax = Area x Rate x (f1 x f2 x f3 x f4 x fn)
 
9. Property tax calculation in Gurugram:
The property tax in Gurugram is based on two factors- the area where the property is located and the usage of the property. To pay the tax online on the website on the municipal corporation of Gurugram, the owner has to enter their unique property ID, name and the address. The property tax amount applicable will be shown to the owner.