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Property Tax Rates Structure in India

Property Tax Rates Structure in India
August 11
12:31 2014
Property Tax Rates Structure in India

Property Tax Rates Structure in India

Tax rates in the context of Indian Property have been streamlined because the entire taxation system has gone through sea change. These types of changes are mainly to create the system and making it at par with international standards. For example, in Bangalore, the state government has brought in Capital Value System for determining property taxes. Municipal Corporation of Delhi has introduced online website for making the whole process of paying property tax faster. The Property Tax Information System of Delhi Municipal Corporation help one by extending the online filling of one’s return form, property tax, property tax calculator and guide one also for paying the tax. Regarding the property tax in India, there are number of websites from where one can get easily tax forms online nowadays. The Nagpur Municipal Corporation is the first local body in India to incorporate five hundred thousand properties under its jurisdiction recorded and making them available for searching and for payment of tax online. It is the primary responsibility of Property Tax Division in India to formulate the Property Tax Laws and regulating them and also supervision of Property Tax Assessment. From the viewpoint of law, property can be basically separated into two types which are personal and real. Property tax is imposed on both personal and real property. Assessment of property tax in respect of these two types is different. Any kind of property which may be personal or real is categorized further according to is applicability.

In addition, when considering property tax in India the real property tax is levied based on the location while the personal property tax is levied based on the resident of the tax payer. But, besides the two types taxes there are various other kinds of taxes in India like Sales Tax, Income Tax etc. but the property tax is the most important source of revenue earnings for the government. The tax paid from the taxpayers is used for various public utility services such as road development and maintenance, building of healthcare facilities, development of environment related projects, establishment of educational institutions etc. The property tax is paid by the owner of the property and local institutions or bodies looks after the levying of tax on the property. Generally the local tax collection authorities are legalized body of government having elected officers. Rates of property tax are calculated based upon the value of one’s property.

Property Tax Rates in India
For assessing property tax, rate of property tax is generally calculated percentage wise, that is amount of tax according of property value for hundred currency unit or it also can be expressed as per every thousand in which amount of tax per thousand currencies unit of property valuation is calculated. It is found that when the valuation of property changes, the corresponding changes in property tax also takes place.

Very lately the model implemented by Patna city attracted favourable comment from UN in the matter of property tax assessment. Patna Municipal Corporation has introduced location-based, assessment of property tax in simplified form. After deciding the valuation of the property the assessor calculates appraisal of property tax by putting a value on the property. Usually in order to assessing the valuation of the property prevailing market price of the property is considered. In addition, the value of property may be assessed by sales comparison method, income method or cost approach method. Under sales or market comparison method one’s property is matched with some similar property in market. In cost approach method the consideration is made according to labour and material cost while in income method to calculate property tax it is considered that capability of the property to generate income.

Assessor may utilize other sorts of procedures as well. At the same time, any addition to one’s proper will improve it’s value and property valuation is connected to the economy of that place. It is significant also for the taxpayer to view the entire assessment methods for property tax issues in India. One can make appeal in regards property tax always if one observes any inconsistency in respect of one’s tax. There is different type of tax consultants found in India. They help one in information about one’s tax liability, knowing about the due date and rate of deduction. They provide all the support and help professionally in the matter of property tax.

In addition, they make the estimates about property tax. Payment of property tax deadlines in majority of the states of India are subject to alter. But in order to make it on time and quickly, particular percentage of allowance is offered to all owner of property, who makes payment of their taxes before the due date. This has been incorporated in some cities and states of India like Andhra Pradesh, Bangalore etc. On some situations, government also offer tax relief in respect of property tax generally in the manner of Senior Citizen Real Property tax relief measure.

Property Tax for Delhi
Property Tax system in Delhi has undergone major changes in the endeavours of Municipal Corporation of Delhi. The capital city of India has highest number of employments in respect to all the sphere of life. Because of this, Delhi accommodates large number of people. The approximate number of taxpayers has become about seventy five thousand in Delhi. Without modernize method of local taxing authorities the collection tax in respect of property it will actually be a difficult task. To streamline the entire method MCD has brought about system of property tax information, which is online system to fill one’s form of tax return in respect of property for the current year. It assists also one to fill one’s proper tax return form, computing one property tax for the current year. It helps one also in making payment of property tax online. In website even Delhi property tax related forms are available which may be duly filled and submitted online. The Municipal Corporation Delhi has shifted to Unit Area System of assessment for property tax, which is developed on fixing unit value per square meter of covered area. The major source of earning revenues in respect of Municipal Corporation of Delhi is property tax.

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