Property tax is a crucial source of revenue for local governments, and it plays a significant role in funding public services and infrastructure development. In Himachal Pradesh, like in many other Indian states, property tax is levied on residential and commercial properties. The state government has the authority to formulate and implement property tax regulations and municipalities and panchayats are responsible for its collection.
Property tax serves as the lifeblood of local governance, funding essential public services such as the construction of libraries, road repairs and sanitation initiatives. In Himachal Pradesh, the efficient collection of property taxes is pivotal for sustaining and enhancing the quality of public services.
See also: How to pay property tax in Guwahati?
What are the properties liable for Himachal Pradesh property tax?
Property tax is levied on a variety of properties in HP, encompassing residential buildings, commercial structures, and associated land. The Himachal Pradesh Municipal Corporation (HPMC) administers the property tax, and the categories of buildings on which this tax is imposed include:
- Residential / tenanted residential
- Non-residential / commercial
- Factory buildings
- Office buildings
- Hotels/bars
- Godowns
- Plots of Land
What is the Himachal Pradesh Municipal Corporation (HPMC) Act, 1994?
The legislative framework governing property tax in Himachal Pradesh is outlined in the Himachal Pradesh Municipal Corporation (HPMC) Act of 1994. Chapter VIII of this act delineates the procedures for assessing and collecting property tax on lands and buildings. It encompasses details regarding the types of properties subject to taxation, as well as the applicable tax rates.
Which properties are exempted from tax?
Several categories of properties enjoy exemption from property tax per the regulations. These include:
- Agricultural land and structures, excluding the primary residence.
- Unoccupied land and structures are exclusively utilised for public worship, charitable activities (subject to corporation approval), public burial, or cremation grounds. Heritage properties falling within the aforementioned categories are also designated for tax exemption.
- Unoccupied land or structures owned by the corporation but not leased or rented out.
- One personal residential property owned by police, C.I.S.F and Paramilitary forces personnel who are martyred in an encounter while on duty in Delhi, provided they are residents of the city.
- One personal residential property owned by Municipal Corporation of Delhi employees or officers who become completely handicapped during duty hours.
- One residential property owned by a Delhi resident who has received awards in international games such as the Olympics, Asian Games, or Commonwealth Games.
- One residential property owned by the following individuals is also exempted from property tax.
- War widows and gallantry award winners in Police, Defence Forces, and Paramilitary Forces.
- Civilians who have received the highest order of bravery awards from the Government.
- Armed force personnel who have sustained disability ranging from 76 to 100 per cent in a war or war-like operations.
Who should pay tax in Himachal Pradesh?
The following individuals or entities bear the responsibility for property tax payments in Himachal Pradesh:
- The owner or joint owners of the property.
- The lessor, if the land or building is leased to another party.
- The superior lessor, if the land or building is sublet by the lessee.
- In cases where the property is not leased out, the individual possessing the right to lease is liable for tax payment.
How to pay online tax in Himachal Pradesh?
Property owners can conveniently make online payments for Himachal Pradesh property tax through the official website of the Property Tax Management System under the Urban Development Department of Himachal Pradesh. Two options are available for payment: one as a registered user and the other as a new user without registration.
For registered users
- Log in with the form number.
- Choose the relevant Municipal Corporation.
- Enter the owner’s name and mobile number.
- Click the “Submit” button to proceed with the payment.
For unregistered users
- Enter the form number.
- Select the Municipal Corporation.
- Click the “Submit” button to make the payment without the need for registration.
FAQs
What is property tax, and why is it levied in Himachal Pradesh?
Property tax is a local tax imposed on real estate, including residential and commercial properties, to generate revenue for funding public services and infrastructure development in Himachal Pradesh.
Which properties are subject to property tax in Himachal Pradesh?
Property tax is applicable to a range of properties, including residential buildings, commercial structures, and associated land.
How is property tax calculated in Himachal Pradesh?
Property tax is typically calculated based on the Annual Rental Value (ARV) of the property, considering factors such as location, size, and amenities.
Are there any exemptions or deductions available for property tax in Himachal Pradesh?
Yes, certain properties may be eligible for exemptions or deductions, such as agricultural land, buildings used for public worship, and properties owned by specific categories like war widows.
Can I pay my property tax online in Himachal Pradesh?
Yes, property owners can conveniently pay their taxes online through the official website of the Property Tax Management System under the Urban Development Department of Himachal Pradesh.
What are the consequences of not paying property tax on time?
Failure to pay property taxes on time may result in penalties and interest charges, and it is crucial to stay informed about due dates to avoid legal hassles.
How often are property tax assessments reviewed and revised in Himachal Pradesh?
Property tax assessments are periodically reviewed and revised based on factors such as changes in property values, improvements, and other relevant considerations.
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