House tax or property tax is a tax that is levied by the Government. This tax is paid by the landowner every year. The tax is collected by the government-mandated local body or the Municipal Corporation. The tax of the property can differ from one house to another due to its manner of valuation that differs between municipal authorities across India. This is what is house tax.
Get tax exemption by applying for home loans from NoBroker home loan services.What is a house tax assessment?
The house tax is assessed or calculated generally on the basis of three factors. Those three factors are:
- Unit Value System
Unit Value System is the process by which house tax is calculated based on the per-unit price of the built-up area of the property. There is a slab rate for the built-up area which is fixed based on the expected market value of the property. Municipalities of Kolkata, Patna, Bangalore, EDMC, NDMC follow this process for tax assessment.
- Rateable Value System
Rate Value system is the process where the tax is calculated based on the annual rental value of the property. The amount is calculated based on various factors such as size, location, condition, amenities, etc the property is providing.
- Capital Value System
The calculation based on the total market value of the property is called the capital value system. The rate is revised every year and this calculation is prevalent in Tier-1 cities like Mumbai.
Nowadays you can pay your house tax online. You can get a tax exemption for up to Rs. 2 lakh if you take a loan for purchasing a house. House tax is a broad topic and it will take me a lot of time to talk about every aspect. So as of now, I am talking this much about house tax.
I hope you understand what is a house tax now.
Pay your utility bills online and get assured rewards with NoBroker Utility Bill Payment servicesRead more:
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What is house tax?
Vimal
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2022-04-19T18:12:40+00:00 2022-04-20T08:13:14+00:00Comment
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