The tax paid by the property owner to the respective Local Government body or municipal corporation termed as Property tax. Government does entitle a Tax amount on owner of Land or Property. This includes all real estate house, Office building and any asset if rented. This may not linked with any of Income Tax submission.
The total house tax amount calculated by local government based on location of asset which is multiple on area. This is a yearly once paid amount at the time of the annual budget that falls in month of March.
House tax is a varying amount every year and if the legal house has aroused by multiple floors. The amount considered and may added in existing house tax. The total house tax value printed by official and a receipt for the same sent to every individual asset owner.
How Property Tax Calculated
This may clearly explained by giving an example, as house tax multiple of the percentage of tax in your surrounding with the asset value. The tax percentage confirmed by the Local Government or Municipal corporation.
Formula: PropertyTax = 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. Also, this may happened as per the conditions of nearby areas. Thus if you own two properties in a different locality of similar area, the tax which you want to pay may also change due to different type of constructions in that lands. So the house tax might change and that cannot questioned.
- Why Should Property Paid?
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.
- Who will Pay house tax?
The tax on property owned by an individual, thus any sum of amount considered under house tax should be paid by the owner, and this must be paid, and any diligence will add extra interest for the same.
- Can a tenant may have to pay the house tax?
In India, only the house owners have to pay the house tax, tenants are not the legalized persons and not having any right.
- What is the Rate of Property?
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.