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30 JUNE, 2021
Owning a home comes with its own set of responsibilities. Furthermore, if you have availed a home loan for buying your dream house, you should be a responsible borrower and repay the loan amount within the specified tenure. You must also make the most of home loan tax benefits as it can help you save a large amount in the long run. As a homeowner, you should be aware of the property tax.
Continue to read further to learn more about property tax, the calculation process, and the steps to pay property tax online.
What Is Property Tax?
Property tax, also known as house tax, is a tax levied on real estate owners by the local government authorities or the municipal corporation. Property tax must be paid every year, and it is used for maintenance of the civic facilities around the residence such as roads, lighting, sewage system, parks, and other local amenities.
How to Calculate Property Tax?
Property tax depends on the location of the property. The local government generally uses one of the below-mentioned methods to calculate property tax.
As per CVS, the property tax is calculated as a percentage of the property’s market value. The market value of the property may vary depending upon the type and locality of the property.
As per UAS, the property tax is calculated based on the per-unit price of the built-up area of the property. This price is fixed on the basis of expected returns of the property as per its location, land price, and usage. The value obtained is then multiplied with the built-up area of the property to compute the property tax.
As per RVS, the property tax is calculated based on the approximate annual rent obtained from the property. The rent of the property is determined based on its location, size, and condition. The property’s neighbourhood and necessary facilities such as hospitals, schools, shops, etc. are also taken under consideration while deciding the property’s rent.
How to Pay Property Tax?
You can pay the property tax online by following the below-mentioned steps. You must note that the steps to pay property tax online may vary in certain cities or municipal corporations.
You must note that property tax cannot be levied on a vacant plot. Thus, if you own a vacant plot, you must contact your municipal corporation or a relevant local authority and inform them about the same.
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