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India property tax – some general guidelines

Posted on by Track2Realty

Property Tax Advisory, India Real Estate, Track2Realty, Track2MediaIndia Property Tax Rates have been rationalized as whole taxation system has undergone a change. These changes are basically to evolve the system and raise it to international standards. Property by law is basically of two types: real and personal. Property tax is levied on both real and personal property. Property tax assessment for both of these is different. Any property be it a real or personal is further categorized according to its use. The owner of the property pays property tax and local bodies (local taxing unit) levy tax on property. The local taxing unit is a legal body of government with elected officers. Property tax rates are determined and these are based on the value of your property.

For the Property tax purpose in India real property is taxed in the jurisdiction of its location where as personal property can be taxed according to the jurisdiction or taxpayer’s resident. Although there are many other forms of taxes in India like Income Tax, Sales tax etc yet the property tax is the single largest source of revenue for government.

However, various cities have various tax procedures. Municipal Corporation of Delhi has made the whole process of paying property tax a very speedy one by making an online website. Their Property Tax Information System (MCD-PTIS) assist you by providing an online filling of your property tax, return form, property tax calculator and also assist you in making payment of the tax. There are many websites dedicated to property tax in India and one can easily get tax forms that are also available online these days.

In Bangalore, state government has introduced Capital Value System (CVS) for computing property taxes. The Nagpur Municipal Corporation (NMC) is the first local government in India to make record of its five-lakh properties in city and making it online for the purpose of property tax search and online payment of tax. Property tax division in India is responsible for making Property tax Laws, regulating the same and supervising the property tax assessment.

For the purpose of Property tax assessment, property tax rate is often given in percentage, which is amount of tax per hundred-currency unit of property value or it can also be expressed as per mille in which amount of tax per thousand currency unit of property value is calculated. Whenever the value of property will change there will be change in property tax value. Recently property tax assessment model in Patna city got praise from UN. Patna Municipal Corporation has initiated area-based, simplified assessment of property tax.

After knowing the worth of property the assessor does Property Tax Appraisal that is placing a value on property. Most commonly to calculate value the willingness of buyer to pay for that particular property is judged. In addition to this value of property can be assessed by market or sales comparison method, cost approach or income method. Under market or sales comparison method your property is compared to some other similar property in the market. While in cost approach method the consideration to current material and labor cost is given. Whereas to calculate income method it is estimated that how much income that property can generate and give to you. Assessor can use other type of methods as well. Further any addition to your property will increase its value and value of property is also linked to the economy of that area. It is very important for taxpayer to monitor the whole assessment process for property tax purposes in India. You can always make property tax appeal if you find any discrepancy regarding your tax. There are many Property tax consultants in India. They help you thoroughly in the process calculating your property tax, knowing the due dates and deduction. They lend all the professional help and assistance in the field of property tax.

Property tax estimates are also applicable in many cases. Property tax payment deadlines in most of the states in India are subjected to change. But to make it fast and on time certain percentage of concession is given to all property owners, who pay their taxes before the last date. This has been done in few cities and states in India like Bangalore, Andhra Pradesh etc. Sometimes government also provide Property tax relief commonly in the form of Senior Citizen Real Property tax relief, First-time Homebuyer Individual Income Tax Credit et at. Tax relief reduces the burden of tax especially to senior citizen and people having low income.