In topics which can be considered complicated, we generally tend to trust any opinions that come our way. However, in subjects as extreme as property, public opinion should not be our guide. If you recently sold a belongings, it is essential to apprehend your tax liabilities. Any confusion in this regard can reason major financial losses.
We bust five not unusual myths involving property tax in India:
Myth: Property Tax Can Be Paid Anytime
Fact: You can pay your property tax on each a semi-annual and an annual basis. In case of a delay in payments, a penalty is charged. However, municipal bodies are frequently visible extending schemes to encourage taxpayers to make bills by means of waiving penalty quantity by way of a big margin.
Myth: My Tenant Will Pay Property Tax On Rented Unit
Fact: As the owner of the assets, a landlord is liable for paying the assets tax, and now not the tenant. It is unlawful to force your tenant to do the same. In many countries, tenants are accountable for paying this levy, in contrast to India.
Myth: The Central Government Decides The Rate Of Property Tax
Fact: Land in India is a state concern and district municipal our bodies assist them in series of belongings tax. Typically, urban-local government are liable for evaluating your property and amassing taxes accordingly. Your belongings tax quantity consists of utility bills along with power, water and drainage.
Myth: I Can In Any Circumstance Avail Of A Rebate If I Am A Senior Citizen, A Woman Or A Differently-Abled Person.
Fact: This is real as long as your house isn’t given on rent — this indicates the property should be self-occupied so one can declare rebates. You can also revel in concessions if your private home falls in a vicinity that is at risk of natural calamities or in case you are a former body of workers of the Indian navy services. In case you have got rented out your house, you’ll must pay taxes underneath the provisions of the ‘income from house assets’ of the Income-Tax Act.
Myth: I Can Get Away With Defaults By Paying A Fine
Fact: Well, most of the times. Municipal our bodies impose an interest on dues as penalty for non-payment. However, non-charge of property taxes for a long time would possibly also force the municipal frame taking on the belongings and promoting it within the marketplace to get better dues. There were many such times in major towns in which a municipal organization ended up auctioning the belongings to get better belongings tax dues. In February this year, for instance, the Pune Municipal Corporation seized as many as 600 homes with a market fee of Rs 500 crore over non-price of assets tax dues.
what are some facts about the property tax in india?
Do homeowners needs to pay annual property taxes in india?
Property Tax is a tax levied on the property by the local authority or municipality department. It is paid annually and is to be borne by the owner. The payment of property tax is an allowable expense to be deducted while calculating the Income on house property but only when it is borne and paid by the owner in the same year.
Non-payment of property tax may lead to many punishments being imposed by the local authorities which varies individually. They may impose penalties and interest charges and in severe cases they may also create a lien on the property and auction to investors.
How can i lower my annual property tax in india?
If I were in your shoes, I would not try such mischief. Pay the right amount.
In the year 2009, our family bought a property. In the years 2010-2013 there was an on-going dispute with the local authority. The dispute was for property tax. The society had been showing itself in the wrong category of the property tax. In the year 2013, our family and other residents ended paying property tax, and the penalty for it as well. We were new resident, so didn’t end up paying hefty amount. Others ended paying Rs. 2 Lakhs to 4 Lakhs.
What I want to convey is, about retrospective payback. In many instances in India. People have gamed the system. The system then rectifies by giving a retrospective effect. Asking for the amount cheated, a penalty for such mischief, and an interest on the amount cheated. In the end those cheated end up paying more than they saved by cheating.
Usually people who game the system. Do so with a help of some corrupt official person. These persons change from time to time. The moment some honest person takes the chair. That person makes sure to clean up such mess.
In your case. Keeping paying the same amount. Those to cheated, will face the heat. If not in their life-time, it will be carried forward to their next generations.