What is Property Tax, Types & Online Payment Process?

PROPERTY TAX

Property tax is defined as the annual amount paid by the landowner to the municipal corporation or to the state government of their particular area. The property refers to the office building, to his house, real estate property, house tax, and the property which is been rented to others.

It is levied on real estate which is the value is the property. Basically, it is imposed annually. The tax is issued by the government authority of the jurisdiction. It can also come under the municipality, geographic region, and a federated state.

In the system of property tax, the government performs an appraisal of the monetary value of each property, and tax is collected based on the value-based upon the proportion to that value.

It is imposed annually or at the time of real estate transactions which is referred to as the real estate tax. The tax is collected based upon the rental income or the land value tax ultimately which depends upon the value of the land excluding the value of the property built on it.

Deemed Property Owner

It refers to the person whose name is not registered in the property paperwork. It means he is the owner by implication. He is not the owner of the registered property. Deemed owner refers to the person who is eligible of paying the property tax but he is not referred to as the legal owner of the property.

For example, if there is any property gifted to the person or transferred for inadequate consideration are known as a deemed owner.

Types Of Property Tax

The Property tax is broadly classified into four types. It mainly includes the following classes which are given below.

  • Personal property (movable man-made objects)
  • Land tax
  • Improvements in land(immovable man-made objects such as buildings)
  • Intangible property

NOTE: The real estate property is the combination that includes both land and improvements. The real estate property tax is also known as real property or realty.

As the judiciary varies the form of property tax also varies. These are differentiated based upon their similar use. Real estate property tax depends on the class for taxation.

There are different rates for the property. For instance, there is commercial, residential, industrial, and vacant real property.

Section 53A of the Transfer of Property Act, 1882 explains the condition in which there is a contract for the transfer of immovable property and the buyer has taken the possession of the property by making the payment required but the transfer details are not been registered.

Property tax is used for fund services such as transportation, parks, recreation, education, hospitality, schools, and libraries. It is considered as the major source of income for the state government.

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REASON FOR PAYING PROPERTY TAX

You may face serious consequences if the property tax isn’t paid on time. The person is supposed to pay property tax within the time limit given by the government. The property may get seized by the government authorities if the property tax is not paid on time. The fourth most focus is given on the commercial properties then comes the residential properties and lately it focuses on the individual properties. Along with the property, the valuables, including the furniture and other things inside the property will get seized upon not paying their dues. It is assessed upon the owner of the property by the municipal authorities and the tax is collected by them. Legal problems are faced by the owners upon not paying the property tax on time.

PROCESS FOR THE ONLINE PAYMENT OF THE PROPERTY TAX

The online payment process of property tax requires certain details that are supposed to be entered during the payment. It requires the Property Tax Identification Number (PTIN). It is different for each and every property. To get the details about the PTIN, you can visit the official website using the link based on the resident of the states.

Now click on Search on the Property Tax tab. Select you are Circle and then enter your door number and lastly, click on search property tax and now you will be displayed with your property number.

Here We are Showing the Steps for Hyderabad Property Tax Payment Process –

STEP1: Visit the official website of GHMC for online payment.

STEP2: Now enter your PTIN and search for “Know Property Tax Dues”.

STEP3: upon searching a page is generated which contains a form which includes the details like your tax amount, interest on arrears, and many more details mentioned in it. Make sure that you enter your details completely and correctly. Once recheck your details before you enter to the payment page.

STEP4: After making the entry of your details now select the method of payment, either debit or credit, net banking. Now in the payment gateway enter your payment details and proceed with your payment.

STEP5: After the successful payment, you are supposed to take the print of the receipt of your payment. Click here to get your receipt   PTI Number

PROCESS FOR GHMC Offline Payment

There is another way for the payment of your property tax. It is not only an alternative but also an easy way for the citizens who could not pay through online mode. You can pay the amount by visiting the Citizen Service Centre, Bill Collectors, or State Bank of India ( It varies from state to state). The following documents are required for the offline mode of payment:

  • Occupancy certificate
  • Registered sale deed attested by a gazette officer
  • Copy of building sanctioned plan
  • A demand draft drawn in the favor of ‘Commissioner, GHMC’, or a cheque can also be used for the payment.