Property owners across India have to pay property tax on the property they own to the municipal corporation in that locality. This tax is collected and used by the corporation for building the city infrastructure, providing public amenities and utility services. It is mandatory for everyone to pay the property tax other than exemptions granted by the government. Failure to pay property tax will result in severe penalties.
Note that taking certain steps can help you save on property tax to be paid.
Check the tax rules in your locality
Know about the tax rules in the place that you live in and any local law that has been implemented. This will give you an idea on where the money is being used and if there is any incentive that is being given to you.
Understand contents of property tax card
Property tax card is issued by the state government and has all details regarding your property. Study it completely and check if contents mentioned on it are the same as the ones which are there on the original property documents that are in your possession. If there is a mismatch between the two, there will also be a difference in the property tax that is levied and what actually should be.
Plan properly for any renovation
People staying in independent homes or bungalows should note that any changes to the structure can invite more property tax. So, unnecessary structural changes should be avoided and to keep property tax low, no changes should be made.
Rebate
State governments offer rebates to property owners for paying property tax before the deadline. The rebates offered vary from state to state. For instance, Greater Chennai Corporation (GCC) offers Chennai property tax rebate to citizens who pay within 30 days from the beginning of the half-year, with April being the beginning of half-year. Ahmedabad Municipal Corporation (AMC) offers a rebate of 12% to Ahmedabad citizens for paying advance property tax between April 18 and May 17,2023. Some states also offer a rebate of 1% if property tax is paid online.
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