Ahmedabad Property Tax: All You Need to Know

Property Tax is of vital importance for generating revenue for the Government. AMC property tax was established in the year 1950; the Ahmedabad Municipal Corporation (AMC) looks after the civic amenities and administration of Ahmedabad. This article will give you a complete idea of property tax in Ahmedabad. Also, you will get to understand the nuances of payment and penalties while failing to do so on time.

Ahmedabad Property Tax

The Ahmedabad municipal corporation property tax bill is paid annually through the municipal corporation. In this regard, we must first understand what property means to better proceed with this entire guide.

A property is a tangible building that an individual owns. The building can be used for residential as well as commercial purposes. The buildings include,

1. Houses
2. Buildings for offices
3. Buildings rented out as residential property
4. Buildings rented out as Commercial Property

So, as an owner of a property, you are entitled to pay the AMC tax bill every year.

Online AMC Property Tax Information

The property tax payment systems that facilitate tax payment have made the public clear off the dues more willingly. The fact for the year 2017-2018 shows that there was a record increase of INR 23 Lakhs as compared to 2016 due to 2 major reasons

1. There was a rebate of 10% given to the property owners to clear off the dues within a deadline
2. Further, the online quick payment system made it easy for the customers to quickly access and made the payment.

One must also understand that AMC tax payment is one of the few municipal bodies that allows customers to pay the taxes through a mobile application. As said earlier, the year 2017 saw a massive increase of 25 times compared to the previous year. Also, 21% of transactions were cashless. The 8% drop in cash transactions is also a promising figure for future advancements. AMC has already achieved the achievement that most of the municipal bodies are striving to achieve.

AMC – Property tax Guide

Ahmedabad municipal corporation property tax is calculated based on five different factors. They all constitute one value, and that is the property tax value to be paid every year. The five factors that are involved in property tax calculation are

Further, the type of property also has different rates.

For residential property, the rate is calculated at INR 16/square meter while a non-residential property is priced at INR 28/ Square meter

1. Carpet Area of the Property
2. Location of the Property – F1
3. Age of the Property – F2
4. Type of the Building – F3
5. Occupancy of the Property – F4

All these factors are included in calculating your property tax.

The below mentioned are the factors that need to be mentioned accordingly in the formula

Property tax = Carpet Area X Rate/Square meter X F1 X F2 X F3 X F4

Let us see each factor and its category-based rating

F1 – Location of the property – both residential and non-residential

F2 – Age of the Property – Both residential and non-residential

F3 – Type of Building – residential only

This factor for non-residential is given a stipulated rating as per the nature of business 

1. If it is a commercial property, the rating is 7.0
2. Any entertainment places, shops, restaurants, hotels, the rating is 6.0
3. Industries and Factories, the rating is 2.0
4. Social and educational organisations/ institutions, the rating is 2.0

The following properties are rated at 1.0

1. Water Tank and Water Pump Room
2. Boarding-Lodging-Hostels that are run by Public Charitable Trust
3. Boarding-Lodging-Hostels that are run by Religious Institutions
4. Ashrams
5. Library
6. Drainage pumping stations

The following properties are rated nil (0.0) 

1. Temple
2. Mosque
3. Jain Temple
4. Church
5. Roza
6. Tombs
7. Sikh Temple
8. Public Bath
9. Graveyard

F4 – Occupancy of the Property

Using the above-mentioned rating and the formula already given, one can calculate the AMC property tax bill.

The best part about AMC is, it sends the property tax bills through emails. In fact, the individuals also receive text message alerts with regard to the tax dues as well. The property tax bill will contain the following information

1. Full Cash Value
2. Taxable Value
3. Assessed Value of the Property

Last Date of Property Tax Payment and Penalty for Delayed Payments

The Ahmedabad municipal corporation tax bill can be paid half-yearly. 31st March and 15th October are the last dates of payment. If there is a delay or default in tax payment, there will be a penalty of 2% of the tax value for every month till you make the payment. In such cases, the tax bill has the penalty fee mentioned too.

Step By Step Process to Make Online Payment for the Property Tax

This column gives you the detailed process of paying the AMC tax bill online.

Step 1: Visit the AMC official website

http://ahmedabadcity.gov.in/portal/web?

Step 2: Click on the Quick Pay Option, which will be at the bottom left of the landing page

Step 3: The web page will redirect you to the place where you can enter the Tenement number

Step 4: Click on Search

As you do this, you will have all or a few of the following displayed on the screen depending on your payment frequency

1. Name of the Owner
2. Address
3. Occupier Details – If any
4. Pending Amount to be Paid

Additionally, you will also find the ‘Pay’ Button. Click on that.

The page will take you to the confirmation area to confirm your tax amount to be paid along with pending dues.

Step 5: You will also find columns to enter email addresses and mobile numbers. Enter them and click on Confirm

Now, you will be taken to the payment gateway from where you can make the payment using a debit card and credit card, and internet banking.

As you make the payment, you will receive the transaction reference number. It will act as the acknowledgment of the payment. The payment that you have made will be credited to AMC’s account in 2 business days.

You will receive the receipt for the payment through email. Alternatively, you can find the AMC tax bill download on the corporation website too.

Payment Options for Online Process

AMC’s online payment process can be made through 3 payment methods. You can select the one that is suitable for you. The options are

1. Internet Banking
2. Credit Card
3. Debit Card

One must also understand that, apart from the fee supposed to be paid while paying online, payment gateway charges might apply to the bank. That means to say; there will be a small amount added to the existing tax charges.

Payment of Property Tax through Offline Mode

People can also make payments by cash. They can visit any of the 58 civic centers available in the city. The count of civic centers in every zone is given below

• Central Zone – 9
• East Zone – 8
• New West Zone – 9
• North Zone – 10
• South Zone – 9
• West Zone – 13

AMC Property Tax Rebates and Discounts

As we went through making AMC Tax Bill payment online and offline, you must also understand the rebates and discounts offered by the municipal corporation. The discounts for property tax are announced at the discretion of the municipal corporation, and it is done from time to time. Let us see the rebates offered for the property owners.

1. If you plan to make the payment online, you will get a discount of 2% of the total tax amount.
2. If you are planning to make an advance payment of property tax, you will get a discount of 10% for the year 2020-21
3. The good news for non-residential property owners is that you will get a 20% rebate on general tax if the property is not on the ground floor.

For 2020, the municipal corporation announced a discount of 50% on the interest for the pending dues if paid between 16 January and 15 February 2020. Likewise, you might have many discounts offered at different times. It has enhanced the taxpayers to pay the tax on time, and the constant generation of revenue by the Government has never slacked.

Exemptions from Property Tax

Certain institutions need not pay the property tax. The Ahmedabad Municipal corporation has announced the exemption for

1. Religious Institutions
2. Places of worship
3. Crematoriums
4. Public Baths
5. Educational institutions like Madrasa and Path Shala

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Frequently Asked Questions (FAQ’s)