Reviewed by Jan 29, 2021| Updated on
Taxes are said to be a significant source of revenue for the government. In turn, it helps them in funding various facilities for the general public in the country. Taxes are levied on multiple items such as income tax is collected on the income earned. In contrast, the Goods and Service Tax must be paid on the purchase of specific goods and services. Accordingly, property tax is a municipal tax on the property owned by any person.
Property tax means the annual sum of money that a landowner/property owner must pay to the local government or the municipal corporation of his/her area. The property includes all tangible real estate property, his house, office building, and the property he/she has rented out to others.
In India, the municipal corporation in a particular area will assess and impose the property tax annually or semi-annually. It is based on the construction, area, property size, building, and similar parameters. The amount so collected is mainly utilised for public services such as repairing roads, construction schools, buildings, sanitation, etc.
Properties of the Central Government, including vacant ones, are generally exempt. Property tax comprises taxes such as the lighting tax, water tax, and drainage tax.
Anyone who owns a property is liable for property tax as specified by the local municipality or other authorised department.
Example: In the city of Bangalore, owners of properties are liable to pay property tax to the Bengaluru Municipality body called the Bruhat Bengaluru Mahanagara Palike (BBMP) every year. The municipal body utilises these funds to provide civic facilities in Bengaluru.
The BBMP jurisdiction is divided into six different value zones, depending upon the guidance value published by the Department of Stamps and Registration. The property tax rate will be different according to the zone in which the property is situated.
A taxpayer can pay the property tax either manually or online.
Fill up all the applicable forms and pay either by card or a Demand Draft. The forms are available at the following authorities: 1. Bangalore One centre 2. Assistant Revenue Officer offices
The following banks have been authorised to collect the tax: 1. Canara Bank 2. Axis Bank 3. HDFC Bank 4. ICICI Bank 5. IDBI 6. Corporation Bank 7. Indian Overseas Bank 8. YES Bank 9. Kotak Mahindra 10. Indian Bank 11. SBI 12. Maharashtra Bank 13. IndusInd Bank