Having a property is like a dream come true. But when it comes to its skyrocketing prices, most of the individuals have to model to plenty of loans ranging from bridge loans to plot loans in order to purchase land or the property of their dreams. In spite of owning the property of our choice is the not end of expenditure. A key expense to be cognizant at the time of buying a property is property tax.
Nowadays, the internet eliminates the need to stand in long queues at the tax department to pay the tax. Whether it may be commercial property, residential property or any kind of land, you require to pay its property tax every year. Thanks to the internet which has now made our lives much simpler, various municipalities corporations have their official websites from where you can deposit your property tax within a minute. Let’s have a look at how one can calculate their property tax, benefits and the methods involved to deposit for the one.
What Is Property Tax?
Whether you call it a property tax or house tax, it is enforced on the owners of real estate by the municipal authorities such as a municipal corporation or panchayat. It is basically employed to upkeep the civil amenities of the area such as lightning, roads, sewage systems, parks, and other infrastructure facilities. It is generally levied on entire real estate including residential or commercial building, attached land and the enhancement made to that land. Now, if you are wondering how to calculate one, have a look below.
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How To Calculate Property Tax?
The property tax largely depends upon the location and the amount of property tax changes from state to state. By now, the different corporation employs different approaches to calculate the tax. The general expenditure of property tax exists the same which is: First and foremost, an analysis of the property is carried by evaluating the location where the property is located. Secondly, the analysis of the occupancy state is made which means that it is checked whether your property is rented out or self-employed. Moreover, there are several considerations while calculating the property tax that includes:
1. The kind of constructions like single floor or multi-storied.
2. The type of property like commercial or residential.
3. The other amenities such as rainwater harvesting, parking and many more.
These entire things are analyzed by the municipal corporations by using a basic formula that is: the individual’s base value of the property multiplied by type of building, floor factor, build-up area, age factor and the category of use.
Benefits Of Using Property Tax
There are various benefits that one may get by employing a property and that includes:
1. Property taxes are more open than the other form of taxes. The owners have the right to determine the assessments and they are generally offered with a bill that depicts their overall liability, thereby making the complete magnitude of the tax obvious.
2. It is one of the most stable and reliable sources for the government as the value of the property is generally less susceptible to short term variations rather than other revenue sources.
3. It is inexpensive to administer and it becomes possible to aim for a cost yield ratio of 3% or less.
4. The revenue is more buoyant and predictable.
5. The tax becomes marginally progressive if it is correctly designed.
Is any document Required for Paying Property Tax?
No, if you have a property tax bill then you don’t require any documents to pay property tax. The bill essentially has all the details that one will require to enter while depositing the tax online. Check out the procedure below to deposit property tax payments.
Procedures For Depositing Property Tax
In the past, depositing property tax was considered a hindrance, but now with the availability of the internet, it has become much effortless and simple to deposit property tax. With the guidance of Municipal Corporations, the individuals gain the benefit of depositing the property tax online which further helps them to save time. For paying the tax, one should follow these steps one by one:
1. Check out the website of your respected municipality. Instead of a single website, all residents of the state or city have their separate websites. All distinct municipalities have their own official states. You need to check the official website of your municipality and visit on the same for depositing the property tax.
2. You need to look for the property tax option. Once you opt for the property tax option, you will be asked to choose the property type such as the commercial or residential. Make sure that you select the right property type to avoid any kind of errors.
3. Once you are done with the property type selection, you will be asked to fill in your revenue survey number or tax number. This tax number is already provided in your tax bill. After filling in this number, you require to select the assessment year for which you want to pay the home tax online.
4. Once you fill in your property tax number and assessment, you will be given a form that will include all your property tax details including your name, overall area usage type and a lot more. Look at these details carefully to make sure that all the details entered are accurate. Now scroll down and will you will see overall property tax, which should be the same as the amount mentioned on the property tax bill.
5. If all the details are accurate, go ahead and choose the payment method. You can opt for any of the payment methods either by debit card or credit card. Once you opt for any of this payment method, you will be redirected to the payment portal from where you can complete the payment.
6. After the successful transaction, you will receive a receipt or challan for the same. Take the print out of this receipt or challan for future reference. By following all these steps, your property tax will be paid successfully.
As every municipality has its own official website, it can slightly vary from state to state. Its is one of the most simple and easiest method that enables one to deposit their property tax within a couple of minutes. Make sure that your property tax is deposited before the due dates to avoid paying additional fines.