How Is Property Tax Computed?

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    When a property is being purchased few one-time charges such as registration charges and stamp duty is payable and also as a recurring charge property tax is to be paid year after year.

    How Is Property Tax Computed?

    Primarily the property tax is payable to serve as a revenue source for the government to fund different services such as cleanliness, sanitation, pest control etc in the society. And if the person refuses to pay the intended amount then legal notice can be issued. Also, the body can refuse to offer some of the services such as water connection etc.

    Property tax and factors that decide property tax calculation

    Amount of property tax implication is decided on the basis of municipal body together with a number of other factors that decide total property tax liability for a property owner. These other factors include:

    1. Location as well as property size

    2. Depends also on the nature of the property whether it is ready to move in property or under-construction

    3. Property owner gender- In case a property is owned by a female owner then there are some rebates

    4. Senior citizens also get some applicable discounts

    5. Civic facilities on offer by the municipal body also decide

    Calculation of the property tax

    On the basis of the recent property valuation done by the authorities property tax liability is decided. The receipt in respect of property tax payment also comes in handy when there is involved some dispute. As it can then help in deciding the genuine property owner. Also, if you are considering availing any loan such as loan against property.

    Exempt properties that do not call for property tax payment

    Some clean lands in addition to worship set-ups, foreign embassies as well as government establishments do not require property tax payment.

    Goodreturns.in

    Story first published: Thursday, August 10, 2017, 9:07 [IST]
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