1. Introduction to 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 is serving its citizens since 1950 and property tax is the second largest revenue to 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 existing size of the property, mentioning information of owner of 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 is expected to Map all properties soon. This leads to 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 carpet area of the building/property. PMC follows capital value-based system for property tax calculation
2. Formula for Pune property tax computation
The property tax is a percentage of the actual value of the property which is based on the ready reckoner that is used to calculate stamp duty by the revenue department.
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.
3. Due date, penalty and other rewards
- Due date – For first half year (April 1st to September 30th) due date is 31st May and For 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, following rebates are available:
- For residential properties/ non-residential/open plot specifically registered as residential building – 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
- 10% concession on general tax if the entire property tax is paid by June 30
4. Steps for payment of Pune property tax
Property tax can be paid both offline and online in Pune.
- 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 receipt or visit http://propertytax.punecorporation.org/ and click on “Tax receipt” to find all previous challans
- 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 firstname.lastname@example.org
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 the 30 ward offices of PMC or Citizen’s facilitation centres run by PMC or at authorised bank branches such as Cosmos, HDFC, ICICI or Bank of Maharashtra or self-pay tax payment kiosks.
5. Exemption/Concession from payment of property tax
Properties used for worship, public or religious purposes and registered with charity commissioner as charitable institute/trust are exempt from the purview of property tax in PMC. PCMC gives 50% concession on general tax of properties owned by ex-servicemen/freedom fighters/their wives, women and 40% rebate in case of properties registered in the name of persons with more than 40% disability
6. Income Tax Implications
Remember to claim the municipal taxes paid during the year as a deduction from your house property income. Read more here