The property owners need to pay a certain amount of money to the government as taxation. The building tax depends on various factors and expenses behind a building. Here you will get to know about how to calculate the taxable amount of a property and pay it to the government every year.
Differences between building tax, property tax, and house tax the same?
The names of the building tax, property tax, and house tax are the same by name, but the uses of the taxes in India are different. The owner of a property has to pay the property tax to the local government authority every year. When your earnings from the property are going under the income tax, then the amount you are paying for the property to the local government is deducted. There are various factors that influence the annual building tax.
How to calculate building tax
The process of calculating building tax is not complicated if you know the process. The annual value of a property is decided by the government authority depending on various factors. You can go through the following points to know the factors that help in calculating the process.
Annual rental value: The value of the property is decided by the government authority depending on the potential of the property in generating money and earning the monthly rent.
Unit area value: The value of one unit property depends on the price of the per square feet area per month in a particular locality. The entire value of the property is calculated by multiplying the amount by the total area of the property. The per-unit value of the property is decided depending on its carpet or built-up area in Kolkata, Delhi, Patna, Bengaluru, and Hyderabad. The value depends on the type of the building and roof type, categories of usage, construction type, nearby road, and location. These factors also leave an impact on the taxable amount of the land or the building.
Buildings that enjoy exemption from tax
When you buy a property or There are certain types of land and buildings that get exemption in tax. A building that is fully or partially invested in charitable purposes, religious worship, educational institutions and other non-profit organizations, then you can enjoy the exemption in building tax. The heritages, ancient buildings, and historic monuments come under building allowance tax deduction.
The building which is occupied in public services like above-mentioned points or in some other purposes including burial and cremation lands, government properties and buildings that are set apart for recreational purposes at free of cost, trade union associations offices, urban development offices constituted under the state governmental acts, institutions providing medical relief at free of cost and central government properties including the luxury residences of important bureaucrats and politicians and specific types of vacant buildings and lands get exemption in tax payment.
You also get the exemption in building tax if you take a loan to own the property, and you need to pay interest annually for it. The maximum amount of the exemption against the loan of a house is 2lakhs. You also get the exemption on the amount that you take a loan for repairing or renovating the property.
How to apply for building tax exemption?
For the first time, you need to apply to the commissioner for tax exemption along with all the necessary documentation supporting the exemption. You can check the rules of your state to understand what documentation you need to submit to get the exemption in property tax. If the authority grants your property tax exemption, then you need not pay it, but in case the authority doesn’t accept the exemption, you need to pay the taxable amount to the government as per the rule.
Penalty for non-payment of building tax
Property taxation in the first-world country is better than in India. In India, low income is boosted up the illegal building construction in the country continuously. Now, the legal rules are trying to bring the most of the constructions under the tax laws. Now the civic authorities of the country are being strong and penalizing the illegal parts of the buildings or the entire building as per legal rules and regulations.
If the owner of the building or property fails to pay the tax within a proper period, then it comes under the penalty. So, they need to pay an excessive amount of money as a penalty depending on the period of the due taxation and its amount. Sometimes, some jail terms come under the penalty rules. The legal authorities pressurize the owner of the property to pay the building tax after a certain period of due taxation.
Can I pay building tax online?
Yes, in the modern era of technologies, you can pay your building tax online if your municipality corporation keeps the process available. The documentation of the property and its location should be there for you when you are going to pay building tax online. You need to enter into the municipality corporation website and enter the assessment code of the property along with the details of the area. The process is easy and safe to pay the building tax online.
How do you calculate building tax?
The calculation of building tax is simple but depends on various factors, including the location and the annual rental rate per unit. The location of the facility has a great impact on the potential of money-making by using the property. So, the rate of the property depends on that valuation as well. The rate per unit of the building is decided by the corporation, and you need to pay the total amount per year. This amount of tax is deducted from the annual income tax when you use the property for rent.
Can we pay building tax online?
Now, if your municipality allows it, then you need not collect the form; fill it up and submit it again with the bank cheque to clear the income tax of the property. But you can easily enter into the official website of the municipal corporation and pay the amount after filling up a few details as per directions on the portal.
Is property tax the same as building tax?
The significance of the property tax and building tax are similar. Both of these indicate taxation that one has to pay against his or her property in the country to the government as the annual rate. The civic body of India and the municipality impose this taxable amount on the property depending on its annual value. This value depends on various factors, including the locality and the potential of the property in the market.
How can I check my property tax online?
You need to enter into the official website of the municipal corporation and check the payable property tax by entering the details of your locality. The payment status option is there to show you the current update once you enter the required data at the site. The assessment code is required to enter when you need to pay the property tax online.
