What is land tax?

Land revenue tax is a fee paid on the purchase of a built property. It is basically the price you pay for the ownership of the land to the government according to the specified laws bi-annually or annually. The tax is levied upon various types of possessions of lands and plots or in case of any improvement on these lands.

The land revenue tax is also known as land tax or property tax. It is paid by the owner of the property to the municipal bodies of the states. This tax is one of the major income sources for these bodies. The land revenue tax collected by the municipal bodies is used in the maintenance and amenities such as water and power supply, sewage systems, lighting and cleanliness, etc.

Now that we know what is land tax and who pays it to whom, it is important to know how is property tax calculated? 

The land tax is calculated based on several factors which include size of the property, location of the property, amenities, etc. the civic bodies of different states use different methods to calculate the taxes, These methods are:

1.Annual Rental System - Based on the annual rental value of the property, a certain percentage of the earning is paid as land tax.

2.Unit Area Value System - Based on the carpet area of the property, its usage and location, and expected returns on the property, tax is calculated.

3.Capital Value Based System - Based on the market value of the property, the civic body revises the taxes annually.

Payment of property tax can be made online in most the states in India using Unique ID and PIN allotted to the house buyer, or an offline form can be filled and submitted with the authorities along with the cheque.

Land tax is a property tax imposed by the government. Checking out the posts written by Shrishti about meaning of land revenue, I remembered about my history lessons. When the British invaded India they introduced many laws and plundered our wealth. She has mentioned the Zamindari System. Earlier the land tax was called Zamindari system or Permanent Settlement. 

Did you know in the Zamindari system a zamindar was supposed to give up his land if he was not able to pay the money on time? As per the Permanent Settlement, if the zamindar was unable to pay the taxes before the sunset of the specified date, his land was auctioned. This law is known as the Sunset law. So brutal isn’t it? 

Even today this system prevails although the system is abolished and no zamindars exist in the land. As per government regulations you are not supposed to pay any taxes for the income earned on agricultural land. Agricultural land is not considered a capital asset so you do not need to pay taxes if you possess agricultural land.

Although land revenue tax in India can also refer to commercial or residential land. And as an owner, you are supposed to pay taxes if you possess these types of land. You can pay them online by visiting the local municipality website or you can pay it offline as well.

I hope you liked what I have written regarding the meaning of land revenue.

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Hey,

I think all of us have heard about the land revenue payment system. When we were young, we used to read details about it in our history books. As adults, we know the system has changed from British Raj yet its primary meaning remains the same. You can read about it in the paragraphs given below.  

In simple words, any type of sum, payment in cash or kind which is received or claimed by a person on the occasion of holding a piece of land. This includes different taxes that are levied, cess rates, and other imposts payable under the provisions. 

Land revenue tax payment is levied by the state government authority. The money is collected by the state government itself. The tax amount is based on the market value of the land. Every five to ten years, the market value of land is calculated and the tax amino is set. Usually, it ranges from 0.5 percent to 1 percent of the total and value. 

Now that you are aware of land revenue definition. You should know its synonyms. The system is commonly known as Zamindari System or Permanent Land Revenue Settlement. Zamindars were appointed by Britishers to collect taxes from landowners. Now, the position of a zamindar has been polished yet the system continues to live on. 

Experts have argued that this method is the most logical way of taxation. As public revenue will be collected from land and then improvements to public infrastructure will be made. This in turn will increase the value of land again. What do you think? 

In India, there are seal provisions for agricultural land. I had previously read that income earned from the agricultural plot is not taxed by the government. This is all from my end on land revenue payment.