Pune Property Tax

It is the Pune Municipal Corporation (PMC) or Pimpri Chinchwad Municipal Corporation (PCMC) based on the location of property, that assesses a property to give it a value and levy tax on a person’s real or personal property in Pune. PMC has been serving its citizens since 1950 and property tax is the second largest revenue next to Octroi to the PMC.

In order to automate the entire property tax assessment process and to boost its revenue, the PMC in September 2016 started carrying out geo-tagging of properties in its jurisdiction along with identifying unauthorised and illegal properties by using Geographic Information System (GIS). The exercise includes verifying the existing size of the property, mentioning information about the owner of the property, clicking photographs of the properties and their documents etc. PMC covers more than 8 lakh properties in its purview.

Out of the few properties have been mapped using the GIS technology and are expected to Map all properties soon. This leads to a significant increase in the revenue for PMC as it enables identifying defaulters easily. Property tax is applicable to all properties and vacant lands within Municipal corporation limits. Property tax is assessed on the basis of the carpet area of the building/property. PMC follows a capital value-based system for property tax calculation. 

In this article, we will discuss about the following:

• Calculation of Pune Property Tax
• Implications of Income tax
• Due date
• Penalty
• Steps for online payment 
• Steps for offline payment
• Exemptions
• FAQs

Formula for Pune Property Tax 

The property tax is a percentage of the actual value of the property, based on the ready reckoner used by the revenue department to calculate stamp duty. 

Property tax = Tax rate * Capital Value 

Capital Value = Base value * built-up area * usage * building type * age factor * floor factor 

PMC allows its users to calculate property tax online by entering locality, area, usage, type, total plinth area and age of the property. You can also use the calculator provided by the PCMC, Property tax calculator. 
Property tax rates of PMC can be accessed at here and property tax rates of PCMC can be accessed here.

Income Tax Implications

As per the Income-tax Act, 1961 you can claim deductions of municipal taxes paid for the let-out property. It is allowed as deduction from GAV of the property only if it is paid. Read more here.

Due Date, Penalty and Other Rewards

PMC

• Due date – For the first half-year (April 1st to September 30th) due date is 31st May and for the second half year (October 1st to March 31st) due date is 31st December.
• Penalty is charged at 2% per month in case of delay in payment beyond due date i.e., charged from 1st July in case of first half year and from 1st January in case of second-half year.
• If the entire property tax is paid by 31st May, the following rebates are available:
  • For residential properties/ non-residential/open plots specifically registered as residential buildings – 10% discount on general tax in case of annual rateable value up to Rs 25,000 and 5% discount on general tax in case of annual rateable value of Rs 25,001 and above.
  • In case of residential properties having solar, vermiculture and rain-water harvesting –
    • 5% discount on municipal tax (excluding water tax and government taxes) in case of one of these projects and
    • 10% discount on municipal tax (excluding water tax and government taxes) in case of two of these projects

PCMC

• 10% concession on general tax if the entire property tax is paid by June 30

Steps for Payment of Pune Property Tax

Property tax can be paid both offline and online in Pune.

Online Payment

• PMC
  • Visit PMC website
  • Click on ‘pay online’ or ‘NEFT/RTGS payment’ as per your choice
  • Enter property details and click on ‘submit’
  • Verify property owner details and also property tax dues that are displayed
  • Enter the amount you wished to pay, verify the mobile number and email id and select the gateway of payment such as internet banking, debit/credit card as per your choice and make the payment. Payment by way of debit/credit card may incur additional charges

You can also print the receipt or visit http://propertytax.punecorporation.org/ and click on “Tax receipt” to find all previous challans

• PCMC
  • As already mentioned, based on the locality your property might be falling under Pimpri Chinchwad Municipal Corporation (PCMC) in Pune. PCMC website can be accessed here. Click on property tax under ‘residents’ and click on ‘property bill’. Enter Zone, Gat No. owner name and address to access the bill and make payment.
  • Any grievances relating to online payment or assessment of property tax can be sent to propertytax@punecorporation.org

Offline Payment

Property tax offline is accepted in cash/ cheque/demand draft. Cheque/demand draft should be drawn in favour of ‘The Assessor and Collector of Tax, P.M.C Pune’.  

Property tax can be paid at any of PMC's 30 ward offices or Citizen facilitation centres run by PMC, at authorised bank branches such as Cosmos, HDFC, ICICI, or Bank of Maharashtra, or at self-pay tax payment kiosks.

Exemption/Concession from Payment of Property Tax

Properties used for worship, public, or religious purposes and registered with the charity commissioner as a charitable institute/trust are exempt from the property tax in PMC. 

PCMC gives a 50% concession on general tax on properties owned by ex-servicemen/freedom fighters/their wives/women and a 40% rebate on properties registered in the name of persons with more than 40% disability. 

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