Do you want to enjoy tax rebates? If yes, read this guide which incorporates methods of how to pay house tax online. Pay house tax on time if you do not want to put yourself in any penalty or legal problems. Paying tax on time will even help you in the future whenever you want to sell your property.
However, before deep diving into how to pay house tax online, let us first understand a few basic things about house tax, including what it is, who needs to pay it, and how the tax rate is calculated.
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What Is House Tax?
House tax is popularly known as property tax or municipal tax. It is a tax that is assessed, imposed, and collected from the property owner by the municipal authority. The tax, which is collected from the owner, is used by the government authorities to provide basic local civic facilities like roads, footpaths, parks, streetlights, etc., to the owner in and around their property.
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Who Needs To Pay House Tax?
Any person who owns the residential property is required to pay house tax. However, when it comes to property tax, certain property categories or property owners are exempt from paying tax. Or it might be possible that they need to pay tax at a lower rate. For example, if you own agricultural land or property for worship, you do not need to pay tax for it. Also, there is some discount for property owners who fall into the senior citizens, disabled, ex-serviceman, or women categories. That’s why you must check the rate and regulations before paying tax to analyze your tax liability cautiously.
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How Is The House Tax Rate Calculated?
Usually, in India, house tax is calculated in different ways. However, the general formula is as follows.
House Tax = Base Value * Built Up Area Of The Property * Usage Category * Age factor * Building Type * Floor Factor
Capital Value System
In this, tax is calculated based on the property’s total market value percentage.
Annual Rental System
Under the annual rental system, the tax is calculated based on the yearly rental value of the property.
Unit Area Value System
In this, the property tax is calculated as per the unit price of the built-up area of the building.
Besides all these factors, there are a few other factors based on which house tax will be calculated in India.
- Various civic operations of different regions
- The locality of the house (property)
- Tenancy status of the property
- Type of the property
- Taxing agency
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Ways To Pay House Tax
You can pay house tax in two different ways.
Offline
You must visit your local municipal office to pay house tax offline. They accept house tax payments offline. It would be best if you go to the specific counter in the office accepting such payments. However, do not forget to collect the receipt of the property and keep it for your future reference.
Online
Nowadays, you can even pay house tax online. All you need to do is enter the relevant information and complete the transaction. However, there are different procedures in different states for tax collection. Therefore, you need to confirm whether or not your municipality accepts tax payments online.
In the next section, we will learn a few steps that we need to follow to pay house tax online.
How To Pay House Tax Online?
You should follow the steps below to pay house tax online without hassle.
- First of all, you need to visit the municipality’s official website and log into it with your basic information.
- Once you successfully log into the website, open the property tax tab. Then, follow the given instructions.
- Now, you must select the correct property tax application form online and fill in the relevant property information, like the property type, location, etc.
- After that, you need to select the assessment year cautiously. We advise you to choose the current and previous years for assessment. It will help you to assess if any due is there or not.
- You should fill in the other details like the property owner’s name, property identification number, etc.
- After that, you should choose a preferred payment option like debit cards, credit cards, internet banking, etc., to finish the process of paying house tax online.
Now, if you want to pay house tax online with the help of Paytm, you need to follow the below steps.
- Visit this link – https://paytm.com/municipal-payments
- Select the municipal corporation for which you are required to make the payment.
- Click -> Get Tax Amount
- Select your preferred transaction mode.
- Click on proceed and complete the payment.
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Things You Must Know
The following details should be kept handy while paying your house tax online.
- Your property’s annual value
- Classification of your property
- Built-up area
- Total number of floors
- Zonal classification
- Your property’s dimension
- Electricity bills
- Exemptions ( If or not your property comes under care centres, agricultural land, etc.)
Closing Thoughts – How To Pay House Tax Online
In summary, you can pay house tax online in two ways through the official website of the municipal corporation or payment platforms such as Paytm. Hopefully, by reading this article, you will learn about how to pay house tax online profoundly. Still, if you have any queries, let us know in the comment section below.
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Nishva Gandhi
Content Copy Writer with over 6 years of professional writing experience and hold a Master’s Degree in IT. I help businesses grow organically with captivating content & strategic social media tactics.