{"id":380,"date":"2009-12-11T02:28:47","date_gmt":"2009-12-10T20:58:47","guid":{"rendered":"http:\/\/www.bharatestates.com\/blog\/?p=380"},"modified":"2020-06-15T14:52:52","modified_gmt":"2020-06-15T09:22:52","slug":"pune-property-tax","status":"publish","type":"post","link":"https:\/\/www.bharatestates.com\/blog\/pune-property-tax\/","title":{"rendered":"Pune Property Tax"},"content":{"rendered":"

\"\"Property tax<\/strong> 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<\/strong> 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\u2019s 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<\/strong>India Property tax<\/strong> is levied on the real estate\u2019s 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:<\/p>\n