Property Tax for Buying House in India- By: Aadi Sharma
Under the Income Tax Act, property is considered as one of the heads of income. Hence, tax is levied on it. In India, property includes flats, buildings, shops and such. Though land itself is excluded from this kind of tax, but the one adjacent to apartments and houses is accounted to be a property and hence, falls under the tax.
The property tax is levied by the local municipal corporation in order to carry out basic civic maintenance services across the region. The services include building roads, sewer system, maintenance of parks, developments in infrastructure and such. In our country the tax is paid by the owner of the property while in other countries like UK, the liability falls on the occupier of the real estate, who in many cases many not be the owner. Let us explore some more information on property tax India.
Information on Property Tax India
- For easy assessment, the property tax rate is often mentioned in percentage. That is, the amount of tax which is to be paid per hundred currency unit of the property value. The tax rate is also expressed in permille where the amount of tax per thousand currency unit of property value is calculated.
- Different regions of the nation have different models the tax system. Very recently, the property tax model followed by the Patna Government has been praised by the UN. The city has implemented the system of area based simplified assessment of tax.
- Tax evaluation on property is determined by several aspects. While selling the property, the amount willingly to be paid by the buyer is taken into account for tax calculation. The tax on the property is also determined by the general market trends and sales comparison, cost approach and income.
- The tax levied on property may change with its market valuation. In case of addition to the property, the tax rate would also increase. As a tax payer, it is very important to monitor the entire assessment process. You are always open to make property tax appeal in case of any discrepancy regarding it.
As an owner, if you are not confident on calculation of tax, take help of tax consultants. He would offer you with all professional help and assistance.
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