Taxes are essential as they are the primary source of income of our Government. These taxes are then used for the development of the nation which includes infrastructure and the welfare of people. Taxes are used to perform civil operations in the country. Similarly, property tax is collected by the local municipal body, which is eventually utilized to develop the local amenities.  Notably, every property owner or legal entity is entitled to pay taxes for any tangible property, including residential homes, office buildings, and property rented to third parties.

Property tax is mandatory for every property owner; however, there is some level of decision that the owner holds up to himself. Whether to pay it either annually or twice a year is totally up to the owner. Now, property owners can pay their tax online and stay away from all the hassle.

In other words, Property tax is the annual payment paid to the municipal or state authority by a property owner. The property includes all real estate, their homes, office buildings, and the land they have leased from others.

Check out the guide that explains the entire process.

How to Calculate Property Tax

Factors that have to be taken into consideration while calculating Property Tax:

• The state or municipal corporation, type of property, etc.
• Different calculation methods among different civic corporations
• Correct details regarding the locality, status of occupancy – rented or self-occupied, type of property – land, residential, commercial, infrastructure offered floor and carpet area, a number of floors of the construction, etc.
• The municipal corporation website is used to calculate the tax amount

The standard formula to calculate Property Tax is:

Property tax = base value × built-up area × Age factor × type of building × category of use × floor factor.

The location of the property determines certain things such as the amount of tax payable in the country as taxes vary from one state to another. Civic corporations use a range of techniques to assess the tax. The standard form of such calculations, however, is the same.

If you make a late payment towards Property Tax, you have to pay some additional charges as a fine, which is different from state to state.

How to Pay Property Tax Online?

Although digitization is not for all, the world is learning to utilize its power at its own pace and enjoying the convenience it offers. Notably, most municipal bodies have a specific method to pay the property tax online on their portal. However, there may be certain exceptions to it as some municipalities may not consider online payment for the property tax (but that is not the case with most of the municipal bodies).

By following the steps below, you can pay your house tax online:

• Visit the official website of your local municipality
• Log in with your credentials. If you have not registered on the portal yet, then register first and then log in to the portal
• Click on the tab, ‘Property Tax’
• Pick your property type and the assessment year
• Fill in other details such as the owner’s name, property identification number, and other relevant information
• Check the property amount, choose the mode of payment, and complete your payment
• Download or print the challan for reference

Conclusion

The online platform of Property Tax has made it easy for people to make their payments, irrespective of the time zone or location. However, very few do not offer this facility but a majority of municipalities in India offer this service, making the process hassle-free. Whether it is a residential property in Mohali or luxury flats in Mohali, do your property tax online for the best experience.