The property tax is a charge levied by the government on real estate projects. It also includes lands. On the possessor, this tax is also imposed. Property tax is also known as house tax. Property tax varies in a different state. Its value is different for all states. The owner has the liability to pay this tax. By law property tax is deligated to municipalities. This results in different property taxation ways between different municipalities within the states. The rate of property tax is different for the different municipality. Property is industrial, commercial or residential, rates very much depends on this.
The different kinds of properties on which property tax is charged are as follow:
- Factory building
- Residential house
- Office building
Property tax is exempted on vacant land or land without any building. Central government properties have excluded from property tax list. for property tax calculation, the Annual Rental Value (ARV) is taken. It is different for self-occupied and let out properties. The annual value for let out property should be the highest of the following:
- Rent received
- Value by Municipality
- Fair rent determined by the IT Department.
In the case of self-occupied property, the value of property tax is zero, if completely used for staying by the owner. The value is taken as zero also when it is kept vacant, i.e., the owner is neither staying nor letting it out. If rented, then the annual value will be proportionately ascertained. to prove ownership of property, In the case of a property dispute, the property tax receipt plays a crucial role. the title of the property should be updated in the municipal records when you buy a property. you may be asked to provide documents to prove the ownership of the property, While getting the property registered in your name at the local municipal records. for availing of loans, such as a loan against property, A property tax receipt is also a key document