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Things Every Homeowner Needs To Know About Property Tax

Things every homeowner needs to know about property tax

Nothing is more comforting than having a house of your own. But, owning a property comes with the responsibility of making certain tax expenses. Every homeowner needs to stay prepared for paying tax if they own a real estate property in Kolkata.

In Indian cities, property tax is imposed by municipal authorities on ownership of a real estate property. Based on the value of a real estate property in Kolkata, the rate of the tax and valuation differs from one municipal area to another. Homeowners must have a clear idea about how to calculate this tax and how can they be constantly informed about certain civic responsibilities.

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What is property tax?

Property tax is levied for maintaining local civic facilities like roads, sewage systems, parks, lights, and other infrastructures. All real estate owners, irrespective of residential or commercial space, are liable to pay for the tax amount they owe to the local authority. The attached land to the main property and all the other improvements on that land are under this tax scheme. However, this is not applied to vacant plots if there is no adjoining building.

How do property owners measure their due payments?

The assessed value of the property decides the proportion of the property tax. There are three ways by which property tax can be calculated.

1. Annual Rental Value System: Based on the yearly rental value of the property, the tax is calculated. Again, the rental value is decided based on the property area, location, proximity to important places of the city, modern amenities, and the present condition of certain development.

2. Capital Value System: This way the tax amount is a certain percentage of the current market value of the property. This is solely dependent on the locality of certain property and is levied by the government where the market value is revised and published annually.

3. Unit area Value System: This tax is calculated based on the expected returns, location, and usage of the property. The unit of this scheme is per square foot per month for a particular location and multiplied by the current value of that particular property. This system is particularly followed in cities like Kolkata, Bengaluru, Patna, Hyderabad, etc.

How will you pay property taxes easily?

By providing the property tax number or Katha number to the office of Municipal Corporation or the designated banks affiliated with your local Municipal Corporation, property tax can be easily paid. However, the tax can be paid more conveniently online by logging into the website of the Kolkata municipal corporation too. The tax amount differs depending on several factors like location, age of the property holder, annual income, and many more. It is always wise to verify your liabilities with local administrative groups before you pay your property tax.

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Remember, if not paid on time, the scheme can attract a fine and it adds up as a form of interest with the due tax amount. Occupants of a certain building are not liable for such taxes. It is to be paid annually if you own a real estate property in Kolkata and anywhere else in this country.

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