Property taxes are levied on every individual who owns property in India. Though it also includes ownership rights like cars, royalty rights, etc. it primarily refers to real estate. Assessed by local municipal bodies, property tax is levied by the state government.
Additionally, other types of land taxes are applicable to commercial properties, agricultural properties, etc. There are 3 primary methods of house tax calculation which are discussed below.
# Annual Rental Value System
In this system of tax calculation, municipal bodies calculate the tax amount based on its annual “rent-ability”. This refers to the amount of optimum rent this property is capable of generating. Property location, amenities available, etc. are taken into account while calculating the tax.
Owners can pay property tax online under this method, though it depends on the location of the property.
# Capital Value-Based System
This system takes into account the market value of a property while levying property tax on it. Generally, the land tax is revised on an annual basis, based on the location of a property.
Unit area value system
The value of a property is calculated based on a fixed system of price per unit value. Generally, the built-up area or carpet area is taken into consideration.
Land tax online is most often available in places following this method especially since this is one of the most widely accepted methods of calculation.
For individuals availing lines of credit like a loan against property, home loans, etc. it is important to pay such tax on the collateral.