Property Tax 2023: Here's All You Need to Know

Owning your dream home is the fulfilment of your dreams and your family's aspirations. While this is true, one must also consider India's extensive need for financial planning and paperwork. Buying a property involves thoroughly verifying all the legal titles, permits and plans, bank NOCs etc. Once you have bought the apartment, flat or plot, certain actions need to be taken to transfer the ownership in your name and secure it legally. The registration process and payment of the stamp duty are some of the more important aspects you should know about. This, however, is not the end of your responsibilities. The local municipal corporation where your property is located levies a property tax payable each year. Let us understand more about this.

What is property tax?

Property tax is a form of tax that is commonly levied on tangible assets like land, flats, apartments, buildings etc. It is imposed by the local municipal authority. Apart from residential real estate, property tax is also imposed on commercial property, warehouses, land, office buildings etc. In general, property tax is to be paid if you own land or any improvements made to land like a building.

How is property tax calculated?

Property tax is imposed by the municipal government. The total revenue collected by the municipal authority through property taxes goes back into improving the infrastructure and facilities of the area. This could include improving water and drainage facilities, repairing roads, and maintaining parks.

The municipal government undertakes the property tax assessment. This is based on the monetary value of your property. It can be paid once or twice a year, i.e., once a year or once in six months. In some cities, the municipal corporation informs the property owner through a letter or email about the calculated tax value. In contrast, in others, the assessed tax value is put up online, and you can check by entering your address on the site. In addition, the local body may undertake reassessment from time to time. 

How to pay property tax in Mumbai?

In most cities and towns, the property tax can be paid both offline and online. With the government's focus on e-governance, most municipal corporations have developed websites which enable you to pay your property tax of 2023 online.

If you live in Mumbai and own a property in Mumbai, you can pay your property tax through the MCGM portal. However, before making a digital payment, you must complete the KYC form and register for email and SMS notifications.

If you are keen on buying a pre-owned property, it is important to ensure that the previous owner is up to date with the property tax payments. It is also important to contact the municipal corporation and change the owner's name once you have bought the property. This will enable you to make the property tax promptly and stay up to date. 

How can Blox help you?

Apart from providing access to high-tech tools to find the property of your dreams, Blox has verified developers and builders listed on the site with a track record of delivering some of the best projects in town. Our online portal uses AI, big data, and information science to find you just the kind of property that you need. Blox is the best partner in your home search because of the expert guidance of relationship managers who offer end-to-end help while buying your home. In addition, your relationship manager can help you find more information about property tax payments in India.