...

Property Tax in IndiaAugust 24, 2018

Property Tax in India

In order to ensure smooth taxation in India, a property is always considered a source of income. And as any other form of income, the tax is levied on the property—movable or immovable. Usually assets such as houses, buildings, shops, flats and apartments etc. are referred collectively to as a property. According to the Income Tax Act, any income derived from any of the above-mentioned assets is considered taxable as one of the heads under the broader spectrum of income from various sources. Usually, it is on the value of the property the tax is calculated.

It is the responsibility of the local governmental body to levy taxes on such incomes and the taxes are used for the maintenance of the local civic amenities of the people. The person who has to pay the tax to these local governmental bodies is different from the countries like the UK where it is the occupier who has to pay the tax. However, in India, it is the owner of the property who has to pay the tax to the government.

In India, the majority of the real estates taxed are on the buildings and the lands associated with such buildings. However, it must be understood that the lands that do not have any building on it are not taxed under this head and will be taxed under different income tax head.

If you are wondering about the kind of properties that are taxed under property tax in India, take a look;

  • Residential House (whether let out or self-occupied)
  • Flats
  • Office Building
  • Shops
  • Warehouse
  • Factory Building

How to calculate Property Tax?

It is on the basis of Annual Value of a property that the tax on any property is determined and usually, a property can have different values through a year, especially for let-out or self-occupied properties.

Now let us see, how to go about calculating the annual value for Let-Out Property.

In the case of any property that is let out, the annual value of the same would be any of the following whichever is higher;

  • Municipal valuation
  • The amount of rent received
  • The fair rent that is calculated by the Income Tax department.

However, it must also be understood that there are deductions on the amount of tax payable by the owner. Deductions up to 30% of the net value of the property is allowed for the maintenance and repair of the property being taxed. You must consult a tax consultant to understand the full picture of the deductions.

Now, let see the calculation of the annual value of the self-occupied property.

Generally, if the property is completely used for a residential stay, the annual value is considered to be zero. It would also be the same if the owner does not occupy it nor does he let it out for someone else. In such scenarios where a part of the property is let-out or if the house is let-out for certain months, the value would be calculated appropriately.

There are deductions allowed on the same as well. However, to get a comprehensive image of the deductions, it is always advised that you contact a tax parishioner.

RECENT POSTS
ARTECH REALTORS

home design innovation - trivandrum real estate

Innovations in Home Designs: Builders Shaping the Future of Trivandrum’s Real Estate

Trivandrum, the capital city of Kerala, is witnessing a revolution in its real estate landscape, driven by innovative home designs… Continue reading Innovations in Home Designs: Builders Shaping the Future of Trivandrum’s Real Estate

Read More
apartment interior gardening

The Beauty of Interior Gardening: Bringing Nature into Your Apartment

The attraction of interior gardening lies in its ability to harmoniously blend the beauty of outdoor nature into the indoor… Continue reading The Beauty of Interior Gardening: Bringing Nature into Your Apartment

Read More
Hidden Costs of Home Loans

Hidden Costs of Home Loans: Understanding Fees and Charges

Embarking on the journey of homeownership is a thrilling venture, but beneath the surface of home loans lie hidden costs… Continue reading Hidden Costs of Home Loans: Understanding Fees and Charges

Read More

Related Projects

A few of our inspiring projects

Apartments in Trivandrum

Being the state political capital, an educational hub as well as home to Kerala’s largest and rapidly-expanding IT hub, Artech has realized the growth potential of Trivandrum as a prime spot for real estate investment. Artech builders in Trivandrum offer a number of lavish and eye-popping apartment projects located in classy niche areas to inspire you.

More
Information
Apartments in Thrissur

The city built around the base of a 65-acre hillock is steeped in rich cultural and spiritual history. Aside from being known as the cultural hub of Kerala, Thrissur is also known as a major business center. Artech offers Thrissur, one of its finest creations to-date, the Artech Gateway, featuring exclusive lifestyle apartments.

More
Information
Apartments in Kollam

Located on the banks of the scenic Ashtamudi Lake, this ancient city dating back to the biblical times, has a strong commercial reputation. The verdant beauty of this city also attracts many people to set-up homes here. As flats in Kollam are in great demand, Artech Realtors have a number of luxurious projects offering superior homes with amazing blue vistas to its residents.

More
Information
Apartments in Kottayam

Kottayam has always been at the forefront for education and literacy. Aside from this, it’s a peaceful town that thrives on commerce. Artech Realtors have given Kottayam their first taste of high-end luxury living with Artech Rio. The unending views of the surrounding greenery, the meandering river and outstanding amenities makes life in these classy apartments one-of-a-kind.

More
Information
Apartments in Thiruvalla

Thiruvalla, which has earned the moniker the ‘Land of the NRIs’ is situated on the banks of the Pamba and Manimala rivers. With a paucity of suitable homes for the cream of the society, there was a glaring need for luxury flats in Thiruvalla. The blissful Artech Kaazhcha apartments offer an inspiring mix of high-end comfort and luxury.

More
Information

DISCLAIMER

The information provided on this website is meant for general guidance. Though we have taken utmost care on the accuracy of the contents, the customer should make an autonomous assessment of the contents. However, the prospective buyers should rely upon the terms and conditions of the sale and construction agreement between the Builder and the Client.

The visuals of the projects symbolize artistic impression only. The information contained herein including the fittings, finishes, features, floor size and color etc. in the visuals are subject to change. However, the plans & specifications indicated in the Builder and Client agreements are final and we have not authorized anyone to make any oral commitments or promises on our behalf in regard to the plans and specifications of the apartments/projects.

For any clarification please feel free to call +91 9847 600 600 or walk into our offices. Our representatives will always be at your service.