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5 Things to Know About Property Tax

· TAX,property tax,house tax

Property tax is an amount an owner of real estate is liable to pay to the government. The tax is payable to the concerned municipal corporation or council under which such property is situated.

As such tax payments are a mandatory requirement, every property owner must know the following things about it.

  1. Applicability of the tax

Property taxes are applicable on all tangible real estates, which can include the following –

  • Residential or commercial buildings/houses.

  • Houses or flats rented out.

  • Land attached to a property.

Improvements to an existing land are also considered for property valuation and house tax calculation.

  1. Non-applicability of the tax

The tax’s applicability is limited to the list of properties mentioned above. It is, therefore, not applicable for vacant land that does not have any adjoining building.

  1. Determination of property tax

The municipal authority of a concerned area determines the amount of tax basis a property’s assessed value.

  1. Payment of property taxes

Depending on the payment requirements of a given locality, payment of land tax online or offline needs to be made semi-annually or annually.

  1. Online payment of property taxes

You can pay property tax online through your concerned municipality’s official website. Under the tax payment option, fill out the assessment year and property identification number to proceed with your payment.

Non-payment of property taxes attracts late payment fine, which can range between 5% and 20%.Know that all taxes related to a property must be paid in time to be eligible to mortgage it for advances like loan against property.

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