Buying immovable assets like land and houses comes with several requirements. As a buyer, property taxes must be paid depending on the city where your property is situated. If Noida is the location of your real estate asset, it would be beneficial for you to have know-how on property tax in Noida.
Why is Property Tax Important?
It is a source of revenue for the government and local bodies and is invested in civil maintenance and betterment. Statista shows that the value of taxes on property and income in India was estimated to be over INR 13 trillion in 2022. This shows that property tax plays a significant role in the country’s development.
Dealing with property taxes can be daunting, but to make it easy and hassle-free, we have compiled an extensive guide that will walk you through all the crucial parts of property tax.
What is Property Tax and How Does It Work?
Property tax is an expense directly levied on property by government bodies. This tax is applicable when a property is purchased, during possession, and when it is sold. The property owner has to pay the government an annual amount. The tax amount is calculated based on the value of the property.
All owners of physical assets must pay tax, be they residential or commercial property. The revenue generated from the tax is used for developing infrastructure and cleaning and maintaining roads and public places.
How is Property Tax Calculated?
The method of calculation of property tax is different everywhere. We will be looking at the calculation of property tax in Noida and Gurugram.
In Noida, the monetary worth of the property is calculated and is called the assessed value of the property. Many factors are considered while calculating the assessed value, such as property location, size, area, age of the building, and usage (residential or commercial). A percentage of that annually assessed value is charged as tax.
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In Gurugram, the tax calculation depends on the property area and its usage. (residential or commercial). The Municipal Corporation of Gurugram (MCG) uses a tax calculation system that considers the size and usage of property to calculate the tax liability.
How to Pay Your Property Tax
To pay your property tax, you can visit the civic body office in your area or pay online on their website. To pay your tax in Noida, you can visit the Noida Authority’s website or the municipal corporation’s office. In Gurugram, the Municipal Corporation of Gurugram (MCG) collects the taxes. You can visit their website and pay your property tax online.
Who Is Exempt From Property Tax?
In all the states, properties owned by the government and religious organisations are exempt from property tax.
Tax exemption is also offered to:
- Former army, navy, or any other personnel employed by defence services
- Owners of agricultural properties
- Senior citizens
- People who are disable
- Educational institution owners
- Families of martyrs from the Army, Police, BSF, CRPF, and Fire Brigade
Payment of property taxes plays a vital role in your journey of real estate investment. Not paying your taxes could result in heavy penalties and even obstruct opportunities for reselling your property. If you’re searching for investment opportunities or planning to purchase a new home, contact ACE Group for more information on residential apartments in Noida.