The property tax receipt is one of the vital documents that banks seek from you when you Apply for a Housing Loan in India. What is property tax? Who pays this tax, and why? Let us look at the concept of property tax before we go on to discuss how to pay property tax online.
The Property Tax Concept
Property tax is a levy that landlords or homeowners have to pay every year. The municipal authority under whose jurisdiction the property falls collects this tax from the homeowners. They raise this amount, usually on a half-yearly or an annual basis for maintaining the necessary infrastructure of the city. The annual rental value of the property decides the amount of property tax every homeowner should pay.
The Property ID (Identification)
Whenever you register your house or property, municipal authorities allot a unique property ID to each property. The municipal authoritiy maintain records of your property using this property ID. This identification number is critical. You need it to pay your property tax online.
Points to Note Regarding Property ID
- Ensure that youmention the Property ID in all your returns and correspondence with the municipal authorities.
- Make a note of the last property ID allotted to your house
- Use this ID to file the property tax returns for the subsequent years
- In case you forget your property ID, you can search for it on the website by entering the necessary details of the property.
Specific properties are eligible for exemption from property tax. They are as follows.
- Government Buildings
- Property used for charitable purposes
- Public places of worship
- Heritage buildings
- Cremation grounds
- Agricultural land
The Basis for Calculation of Property Tax
The evaluation of the property tax depends on various factors. They include:
- The neighbourhood area –The more affluent the neighbourhood, the higher is the property tax.
- Construction of the house – The quality of the structure is an essential
- Possession – Commercially let out properties attract a higher level of property tax.
- Age of the house – The year of construction is a vital aspect in deciding your property tax amount.
- Number of floors.
- Covered area – The more the area, the higher is the property tax valuation.
- Vacant area
You have to submit the above information to the municipal authorities. The municipal corporation calculates the property tax payable for each property based on the information you provide. The official website of the corporation has the details of the tax rates and rebates allowable to residents.
How Do You Pay Property Tax Online?
Let us look at how to pay property tax online in, say Chennai:
- Access the website chennaicorporation.gov.in and select ‘Online Civic services.’
- Further, select ‘Online Tax ’
- You should know your Zone and Division. If you do not know the details, you can check it out online.
- You have to register your phone number with the corporation.
- On registering your details, you can enter the information and click the submit button.
- You can also get the details of the Zone and division from your previous property tax receipts.
- The system will have the details of the property tax paid by in the past.
- It will also show the period for which you want to pay the property tax. You can pay the tax in advance as well.
- Choose the period for which you wish to pay the tax. Click on the ‘Pay Online’ option.
- Choose the amount from the payment option and select your preferred mode of payment.
- You can pay using your credit/debit cards or through net banking.
- On completing the payment, you will get a confirmation message along with the print option.
- Take a printout and file it separately. You might need to submit the receipt when you apply for a Home Loan.
- The property tax receipt is a proof that you own the property.
Things to Remember While Paying Property Tax Online
- Double-check the information you provide to the municipal authorities. They calculate the tax based on the information you provide. You are also eligible for various rebates depending on the accuracy of the information you provide.
- Non-submission of details attracts a penalty with interest.
- If you pay late, you have to bear the burden of late
- Paying the property tax online entitles you to rebates. The municipalities have introduced these rebates as an incentive to people to pay the tax
- Women and senior citizens get an additional concession.
- Furnishing wrong or misleading information can result in the levying of penalties by the municipal authorities.
Also Read: What Does a Home Loan Process Include?
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