Property Tax in Ludhiana - How to Calculate, Payment Process & Last Date

Ludhiana is known for its rapid industrial development, beautiful landmarks and cultural heritage. Being a resident of Ludhiana, you must be aware of the property taxes you need to pay annually to the Ludhiana Municipal Corporation if you own a plot of land in the state. The Municipal Corporation further utilizes the collected taxes towards the maintenance of city infrastructure including water supply, maintenance of roads, disposal of wastes, and more. 

In this article, we will discuss how to pay property tax in Ludhiana.  

What Is the Property Tax in Ludhiana?

Property taxes are direct taxes imposed on real estate owners of property. The Ludhiana Municipal Corporation takes the responsibility of levying property taxes in Ludhiana every year. This is the main source of revenue for the Punjab State Government. Earlier, there were minor discrepancies between the number of property owners existing and the number of owners paying taxes in Ludhiana. Thus, to prevent the occurrence of any discrepancy further, the city's municipal corporation introduced rebates applicable to early taxpayers. 

Moreover, if the property tax owners fail to pay taxes within the specified time limit, a 20% penalty is charged to the property owner with 18% interest on the tax amount. Thus, to avoid these hefty charges and interest on property tax payments in Ludhiana, every property owner must pay their taxes on or before 31^st March every year. 

How to Calculate Property Tax Amounts in Ludhiana?

The calculation of property taxes varies from one area to another. The system of calculation for Mumbai might not be the same for Ludhiana. The value of the property taxes however depends on the type of property, land ownership (whether rented or self-employed), age of property and others. For instance, the residential and commercial properties will have different rates of taxes. 

The formula usually accepted for calculating property tax amounts in Ludhiana is:

Total property taxes to pay = Collector’s rate of the property + cost of construction – Depreciation

Now, while calculating property taxes, important factors to look into are whether the property is on rent and whether the owner and tenant should decide the rent value. However, it should be finalized legally with a signed stamp paper.

How to Pay Ludhiana Property Tax Online?

Paying Ludhiana property tax online is a safe and convenient option for property owners. The online portal is easy to use and hassle-free and residents can pay taxes instantly following the below steps.

Here is a detailed step-by-step guide on how to pay online property tax in Ludhiana:

Step 1: Go to the official website of the Department of Local Government, Government of Punjab

Step 2: From the different options located on the left tab, choose m-Seva Online Municipal Services. And then from the drop-down menu, select ‘Pay Your Property Tax’

Step 3: You will now be redirected to a new webpage where you need to register with a user ID and password.

Step 4: Once you complete logging in, choose the Property tax option located under the Property tax section. Click on 'Assess and Pay' and choose 'Add new property' to complete the assessment process.

Step 5: Follow the requirements and complete the tax preparation process. Check once again all the details provided and then click on ‘Proceed to Pay’

Step 6: Enter the desired property tax amount and then click on ‘Pay. Once done, click on ‘Agree and Continue’

Step 7: The payment procedure will now be completed. The payment receipt will now appear on the screen. For further use in the future, download the receipt.

How to Pay Ludhiana Property Tax Offline?

Ludhiana residents who prefer in-person transactions should go for the offline method. Applying for property tax in Ludhiana through an offline process is a traditional method. Residents with no access to online services should opt for offline. 

Here are the steps to follow to pay Municipal Corporation Ludhiana property tax offline:

Step 1: Go to your nearest municipal ward following the residency category (A, B or C). The address however you will find on the official website of the Department of Local Government, Government of Punjab

Step 2: Provide all relevant details in the collected application form. For collecting the application form, payment of fees is mandatory.

Step 3: Submit the duly filled application form following the required format to the counter along with the applicable fees.

Once you complete the submission process, you will get an acknowledgement slip, which can be used in the future.

Last Date of Property Tax Payment in Ludhiana

The Municipal Corporation of Ludhiana has announced March 31st as the deadline for property owners to settle any outstanding property tax payments. If it is not paid within the due date then you will be liable to pay penalties or interest on the outstanding dues.

Conclusion

In conclusion, paying property tax is a crucial responsibility for all property owners in Ludhiana. The tax amount is determined by property location, size, and type. Timely payment not only ensures legal compliance but also helps avoid penalties. To facilitate a smooth payment process, residents can choose from both online and offline methods for settling their property taxes.