Property tax is that an owner is required to pay on the value of the property being taxed. Property tax can be defined as “generally, tax imposed by municipalities upon owners of property within their jurisdiction based on the value of such property.” There are three species or types of property: Land, Improvements to Land (immovable manmade objects; i.e., buildings), and Personal (movable manmade objects). Real estate, real property or realty is all terms for the combination of land and improvements. The taxing authority requires and/or performs an appraisal of the monetary value of the property, and tax is assessed in proportion to that value. Forms of property tax used vary between countries and jurisdictions. The tax power is vested in the states and it is delegated by law to the local bodies, specifying the valuation method, rate band, and collection procedures. The tax base is the annual ratable value (ARV) or area-based rating. Owner-occupied and other properties not producing rent are assessed on cost and then converted into ARV by applying a percentage of cost, usually six percent. Vacant land is generally exempt. Central government properties are exempt. Instead a ‘service charge’ is permissible under executive order. Properties of foreign missions also enjoy tax exemption without an insistence for reciprocity. The tax is usually accompanied by a number of service taxes, e.g., water tax, drainage tax, conservancy (sanitation) tax, lighting tax, all using the same tax base. The rate structure is flat on rural (panchayat) properties, but in the urban (municipal) areas it is mildly progressive with about 80% of assessments falling in the first two slabs. By all accounts, the property tax is under-utilised in the municipalities and not effectively used in the panchayats, mainly due to tax payer resistance.
For income tax purposes in India, property is considered as a source of income and hence, tax is levied on that. Properties are usually meant by real estate’s which include any building, flat, shop etc. as well as the land appurtenant to the building. Under the Income Tax Act, incomes from the properties are regarded as one of the heads of income. The amount of tax is calculated on the value of the property being taxed.
It is the local municipality authority that levies property tax for the maintenance of basic civic services in the city. Unlike the countries like UK where the occupier is liable to pay the property tax, it is the liability of the property owner to pay the property tax India to the concerned municipalities.
The Property
India Property tax is levied on the real estate’s which consist of buildings or land attached to the buildings. Vacant plots of land without any adjoining building are not liable to be taxed under this head. It will rather be taxed as income from other sources. Following are the kinds of properties that are liable to be taxed under property tax India:
- Residential house (self-occupied or let out)
- Office Building
- Factory Building
- Godowns
- Flats
- Shops
Calculating Property Tax India
Property tax in India is calculated on the basis of ‘Annual Value’. There can be different Annual Values for self-occupied and let out properties.
Annual Value for Let out Property:
In case of let out property, the annual value would be equal to the maximum of the following:
- Municipal Valuation
- Rent Received
- Fair Rent as determined by the Income Tax department
Deductions: Deductions are allowed on the interest on the loan to build, buy or repair the property. A deduction of 30% of the net value is allowed for the repair and maintenance of the property.
Annual Value for Self-occupied Property:
For self-occupied property, the annual value is taken as zero, provided that the property is fully used for own residential stay. It the owner doesn’t occupy the property, nor he lets it out, the annual value of the property would be zero again. If the property is given on rent for a few months, the annual value will be calculated proportionately.
Pune Property Tax system has undergone few changes made by the Pune Municipal Corporation. To boost the payment of the tax on time Municipal Corporation, Pune is giving concession to the taxpayers. These concessions are granted if the property is used for residential purposes. No concession for commercial property. Up to 40% benefit can be made if the property is self-occupied. Like in all other cities the civic bodies work from the monetary assistant they get from property tax. The collected money is used for the development of the city and government can save itself from monetary crunch if the payments are made on time. This step made by PMC is very good, which will enhance the collection. To boost the process further Citizens’ Facilitation Centers have been made to decentralize the collection of the tax in Pune. Even Pune Municipal Corporation (PMC) has 21 branches and six extension counters of Cosmos Co-operative bank. People are buying property and with this the tax of approximately Rs. 300 Crs is estimated to be collected. The due dates for the payment of tax keeps on changing as people don’t pay tax on time. Property tax rates are still the same as there is no hike made in them by the government. Work is going on to overhaul the property tax system in Pune. The self-assessment schemes will be introduced soon that will really omit the waiting period for tax property bill.
If your construction is eco friendly i.e. eco-housing then you can get rebate on property tax in Pune. In addition to all the changes, further relief is given to the taxpayer by making an online website on property tax by PMC. It has all the necessary information on tax with reports on past few years. In website search can be made by name, address. The property details and tax dues details can be checked online. For the assessment assessor calculates the Annual Ratable Value (ARV). Property tax assessment is done and tax bill is send to the taxpayer. If you are not satisfied with the tax details then you can make tax appeal by giving proper proof in the favor of your appeal. It is always advisable to take professional help from a lawyer or consultants. They can present your case in a professional manner before court and give you the minutest detail. Those who have purchased commercial or residential property after 2005 can save themselves from paying heavy tax throughout. To avail this they need to make an appeal, which will challenge the tax assessment notice served by the civic administration. Property tax in Pune like other city can only be transferred if proper documents are submitted in Municipal Corporation’s office. Pune Municipal Corporation is putting all efforts to help people. It is planning to make the payment of tax online. Further details on property tax in Pune, payment, due dates, housing property tax et al can be checked in the official website by Municipal Corporation, Pune.
Website: http://www.punecorporation.org/ptax/ptaxhome.asp
I have let out 600 sq. ft. flat for commercial use in Pune at a prime location. I have been paying a property tax of Rs. 19000 annually for the last 5 years.
I was receiving rent of Rs. 9000 per month. Is there a standard formula for calculating ARV and effective tax? Please inform.
Regards
How do make payment of my property tax bill using my SBI Debit Card?
How do make online payment of my property tax bill using my SBI Debit Card?
I am awating a response urgently.
I am not able to find my on line property (flat) in pune. want to make online payment.
Dhankawadi (Katraj) area.
paying on line of property tax is very difficulte on u r side
Dear Sir/Madam,
http://www.punecorporation.org/ptax/ptaxhome.asp This is not our site. This is a Government site.
Regards,
Bharatestates Team
How to make payment of my property tax bill using my SBI Debit Card?
@ Ramesh
Sir,
To make online tax payment please visit => http://www.punecorporation.org/pmcwebn/OnlineDueDetail31032011/
i have not recieved property tax bill though all society members have recieved.my property no is P/3/02/01719000
Since 5th April 2011 I am trying to pay property taxes ONLINE by visiting
http://www.punecorporation.org/pmcwebn/OnlineDueDetail31032011/
A caption “problem loading page” and Timed out comes always.
Not able to pay online
What shall I do now?
Prabhakar Naik
still today not received property tax bill
in todays mt (29-04-2011) only phone numbers are given for enquiry in the same you write online payment will be done but proper sight will be not given
@ Vinayak
Hi,
To pay property tax online please visit =>
http://www.punecorporation.org/pmcwebn/OnlineDueDetail31032011/
Thank you.
@ Prabhakar
Sir,
We have checked the same site. It is loading properly. This error occurs due to slow speed of internet connection or it might possible that a server on which this site is hosted unable to take visitor’s load. (Many tax payers visiting the same site at a same time, due to this unexpected load site is unable to load properly.)
1. We think you must try to check it on high speed internet connection.
2. Check the same site in other browsers like Mozilla – Firefox , Google Chrome, higher version of Internet Explorer.
Thank you.
whats the shortcut link of online payment
@ Balasaheb
Sir,
To make online property tax payment please visit => http://www.punecorporation.org/pmcwebn/OnlineDueDetail31032011/
Thank you.
On line payment of Property Tax should be available through all other banks having internet banking and it should be without any service charges
Is there a option to search the property tax bill by name or address ? If I am not wrong it was there last year when I did my online payment, but not able to find it now.
@ Sandip
Sir,
To search Pune Property Tax by name, address or Ward name, please visit => http://punecorporation.org/pmcwebn/ptax/prop_search.asp
Thank you.
Here is new link for Punkers to pay property tax online
http://www.punecorporation.org/pmcwebn/OnlineDueDetail31032011/prop_duesdetails.aspx
I just made payment through it. It is supporting HDFC and ICICI bank payment gateways. You can pay your tax within 2 mins using your credit card or by net banking. Only drawback is that you can not make payment through debit card.
@ Jayant
Sir,
Thank you for sharing such information on online tax payment for Pune properties. Many people are not aware of these online payment process.
We have 2 adjoining flats those are connected inside by removing the common wall. Both the flats are in my name. The flats are empty-we have not occupied them yet; nor have we rented it out. However, the Property Tax department has charged us higher property tax at a rent-out rate. When we appealed, they said that when two flats are close by one is considered as rented-out even if one doesn’t occupy it. Is there any such rule? Who do we go to next to appeal further? Waiting for your guidance…..Please help! Thank you!
The general body of the Pimpri Chinchwad Municipal Corporation (PCMC) approved a resolution on 21 July 2011 for property tax.
Citizens in Pimpri-Chinchwad who pay property tax in advance before August 31 will get a 10% concession in general tax this year.
@ Suchi
Madam,
Concerned authority are charging illegally. But I need to see the agreements and tax bills and your previous applications. we can file appeal and get the same regularised.
Regards
Adv. Mrs. Mrudula Prasad Chitale
BA,LLB, LLM
http://www.bharatestates.com/blog/index.php/authorcontributor-for-bharatestates-com/
@bharatestates team & Adv. Chitale,
Thank you so much for the guidance. We will contact you once we make up our mind.
I have to get Index II for two properties in Pune City. (1) What is the procedure to get it (2) What information I will need to provide (3) How much it would cost.
regards,
Milind
What is the last date for payment of property tax in Pune for the annual bill,2011-12, without any penalty/late payment charges?
@ Brij Mohan
While surfing the internet I read somewhere about information on last date of payment of property tax in pune.The PMC has decided to accept property tax bills even on non working days. The PMC has announced that for property bill complains contact the PMC tax department on 020-25501183, 25501185 during office hours.The PMC headquarters at Shivajinagar and the citizen facilitation centres will remain open on all days, including Sundays. Take a look on these details.
> The 1st installment of the property tax for 2011-12 has to be paid before May 31, 2011.
> 2nd installment before December 31, 2011.
I hope this will help you.
Thank you.
Thanks Sourabh for the info. But in my case i want to know the last date for ANNUAL PAYMENT OF PROPERTY TAX
@ Brij Mohan
Sir,
For more details please contact directly to the PMC tax department on these numbers 020-25501183, 25501185.
Thank you.
@ M G kulkarni
Sir,
You need the registration no of document, date of registration and office where the document is registered.
Regards
Adv. Mrs. Mrudula Prasad Chitale
BA,LLB, LLM
http://www.bharatestates.com/blog/index.php/authorcontributor-for-bharatestates-com/
what is the ratio the calculation of pmc proporaty tax
Recently, I have purchased a resale flat in Pune. But that flat is not registered with PMC. Please let me what should i do?
You made some decent points there. I did a search on the issue and found most guys will go along with with your blog.
@ Vivek
Sir,
Property tax is calculated as per assessment fixed by the corporation if you have the bill of tax (any) you can see there is assessment amount is mentioned (residential/commercial property) on the bill viz 5200 like this and % wise description is mentioned on that, the vary assessment is decided as per the norms of the corporation.
Regards
Adv. Mr. Pankaj Wankhade
B.A. LLB, GDC & A
http://www.bharatestates.com/blog/index.php/pankaj-m-wankhade-legal-content-contributor
@ Pundalik
Sir,
We have to check sanctioned plan first, and if your asking assessment in corporation tax you can apply directly to the pmc office for assessment.
Regards
Adv. Mr. Pankaj Wankhade
B.A. LLB, GDC & A
http://www.bharatestates.com/blog/index.php/pankaj-m-wankhade-legal-content-contributor
@Adv. Mr Pankaj Wankhade
Thanks a lot sir.
Yes i am asking about corporation tax.
As i mentioned its a resale property, which is 5 years old so do i need to pay tax of previous 5 years also.
@ Pundalik
Sir,
Yes. You have pay the full arrears, (you should have the Property No./Milkat kramank) you have to visit the corporation ward office for the same , I am puzzeled that why u or earlier owner still not got Notice from corporation, now the corporation and Electric board is strict for arears of dues, they issued the notice immediately.
I would like to know how much time is required to get tax assessment done of the property after submitting the required documents with Pmc
@ Rajesh
Sir,
After assessment by PMC it will come in the next bill, immediately if you are talking about resale case same is changed withing one month approx. and certificate was issued the Corporation.
Regards
Adv. Mr. Pankaj Wankhade
B.A. LLB, GDC & A
http://www.bharatestates.com/blog/index.php/pankaj-m-wankhade-legal-content-contributor
I have purchase 1BHK flat at sukhsagar nagar,
I want to transfer property tax to me.
Please let me know process for the same.
@ Milind
Sir,
You can apply to your ward office, with your sale deed copy (same must be true copy), firstly you have to obtained tax clearance certificate secondly apply with sale deed copy for change of name, the application (available with PMC ward office) enclosed with tax clearance certificate, signed by you, approx. it will take 21 to 30 working days.
Regards
Adv. Mr. Pankaj Wankhade
B.A. LLB, GDC & A
http://www.bharatestates.com/blog/index.php/pankaj-m-wankhade-legal-content-contributor
Is there any income tax benefit for the amount paid against property tax?
Nice post. I used to be checking constantly this weblog and I am impressed! Very helpful info specifically the remaining section
I handle such info much. I used to be looking for this certain information for a very lengthy time. Thank you and good luck.
@ Vivek
Sir,
I think it can be consider for expendenture in particular financial year, but further I am not sure, consult CA, in this regards, thanks
Regards
Adv. Mr. Pankaj Wankhade
B.A. LLB, GDC & A
http://www.bharatestates.com/blog/index.php/pankaj-m-wankhade-legal-content-contributor