Property taxes are gathered by local municipal authorities for the upkeep of public facilities and services.
The process of purchasing a property requires a significant investment of funds. After purchasing your new home, you will still need to invest a sizeable sum on maintaining it, whether it be waterproofing the terrace or applying a fresh coat of paint.
However, in addition to this, the home's owner is required to pay a house tax or property tax to the local municipality or corporation.
What is house tax?
To maintain public infrastructure and services like parks, sewage systems, roads, and street lights, among others, local municipal authorities collect property taxes.
The rate of property tax collection by the local government is based on the states, cities, and zones.
How is house tax calculated?
For the various municipal authorities, the process of computing property tax varies, just like the rate does. The three systems used to collect property tax are as follows.
1. System of Annual Rental Value
In this approach, the annual rent value of the property is used to determine the property tax. It doesn't refer to the actual amount of rent that was paid for the house.
Instead, the local government determines the fixed rental value, which is based on the house's location, size, and condition.
2. Capital Value System
In this case, the local authority uses the property's market value to determine the tax that will be imposed on it.
The value of the property is determined by the government. On the basis of the property's location, it is updated yearly.
3. System of Unit Values
In this approach, the built-up or carpet area of the property is valued per unit, and this value is used to calculate the property tax.
Depending on the land's cost, intended use, and location, the price is established based on the expected returns from the property.
How do I file my property tax?
Visit the local municipal corporation's office in the region or the banks the municipality has authorised to file your property tax.
To identify the property for which taxes are to be paid, one must submit the Khatha number or the property tax number.
Owners can also submit their property tax payments online via the state or municipal government's website in question.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Purchasing a new property? THIS is how you calculate house tax and file it")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}