Government does entitle a Tax amount on owner of Land or Property, the tax paid by the property owner to the respective Local Government body or municipal corporation is termed as Property tax, and this includes all real estate house, Office building and any asset if rented and it is not linked with any of Income Tax submission.
The total house tax amount is calculated by the local government based on the location of asset which is multiple on area, and this is a yearly once paid amount which is at the time of the annual budget that falls in the month of March.
House tax is a varying amount every year and if the legal property has aroused by multiple floors, the amount considered will be added in existing Property tax. The total house tax value is printed by the official and a receipt for the same is sent to every individual asset owner.
How Property Tax is Calculated
This can be clearly explained by giving an example, as house tax is multiple of the percentage of tax in your surrounding with the asset value, and the tax percentage is confirmed by the Local Government or Municipal corporation.
Formula: Property Tax = Base Value × Builtup Area × Age factor × Type of Building × Category of use × Floor Factor
The value of tax might change year on year as per the governing conditions and changes in rules hases that happened in nearby areas and thus if you own two properties in a different locality of similar area, the tax to be paid may also change due to different type of constructions in that lands, so the house tax might change and that cannot be questioned.
This is a one-time per year tax amount that is collected by Government from the public to serve the basic public needs. By collecting the taxes, the local Roads, government projects for public service, Bridge’s, Government Schools and property such are being initiated.
The tax on property owned by an individual, thus any sum of amount considered under Property Tax should be paid by the owner, and this must be paid, and any diligence will add extra interest for the same.
In India, only the house owners have to pay the house tax, tenants are not the legalized persons and not having any right.
Property Rate is an amount that municipality or local government body decides by calculating the rate of purchase around your locality, and this amount does change every year and varies from locality to locality.