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What is a property tax and when is it paid?

Property tax is paid by property owners annually to a local level government such as a Municipal Corporation. Under a property-tax system, the local government requires or performs an assessment of the monetary value of all property, and tax is charged in proportion to that value. The authority to tax property rests with the State level government but it is the local bodies which are delegated to collect property tax depending on the various modes of calculating the value of the property. 

Property tax can be paid through various means, including both offline and online methods. For instance, you can choose to pay your property tax dues by visiting the local authority office in charge of collecting these taxes, or by visiting the specified banks which have the option of collecting property tax. You will need to carry the documents and previous receipts for them to be able to file the tax against your property. 

Property tax can be paid through various means, including both offline and online methods. For instance, you can choose to pay your property tax dues by visiting the local authority office in charge of collecting these taxes, or by visiting the specified banks which have the option of collecting property tax. You will need to carry the documents and previous receipts for them to be able to file the tax against your property. 

Otherwise, you can also avail of an online facility on offer by most major states and their local authorities to pay property tax from the comfort of your home. You can choose to log on to the relevant website and file taxes using the documents and pay using net banking or your debit cards. This method is more convenient than physically visiting and the extra charges you might pay on online payment are probably worth the time saved in travelling. 

While the property tax payment becomes due every year, its payment can be made in two parts as well without any additional interest. However, it must be ensured that the payment is made on time as a delay in paying could attract an interest of about 2% per month. It is important to note here that property tax payment is the responsibility of the owner of the property irrespective of the actual occupant there. 

For example, Amit owns a house in Gurgaon. So, he needs to pay property tax to Municipal Corporation of Gurgaon. The tax payable on the property is based on two factors i.e. area & use (residential/non-commercial and commercial). 

The rate of per sq yard to calculate property tax for residential properties in Gurgaon: 

Area (in sq yards)Rate (in Rs per sq yard
Up to 300 sq yards ₹ 1 per sq yard
301 to 500 sq yards ₹ 4 per sq yard
501 to 1,000 sq yards ₹ 6 per sq yard
1,001 sq yards to 2 acres ₹ 7 per sq yard
More than 2 acres ₹ 10 per sq yard

Similarly like Gurgaon, every panchayat, municipality or municipal corporation calculates their rate differently for property tax. 

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