Property Tax
Property tax in India is a crucial mechanism for local governance, funding essential public services and infrastructure projects. Property owners should stay informed about their tax obligations, understand the calculation methods, and make timely payments to avoid penalties and contribute to the overall development of their communities.
Overview
Definition: Property tax is a tax levied by municipal authorities on the value of real estate properties, including land and buildings. This tax is used to fund local infrastructure and public services such as roads, schools, and parks.
Applicability: Property tax is applicable to all properties, including residential, commercial, and institutional properties.
Governing Body: The local municipal corporation or council of a city or town is responsible for assessing and collecting property tax. The rules and rates can vary significantly from one municipality to another.
Calculation of Property Tax
The calculation of property tax typically involves the following components:
Annual Value
This can be determined in various ways:
Tax Rate
The municipal body sets a tax rate, which is applied to the annual value to determine the property tax amount.
Assessment Method
