Definition and Purpose of Property Tax

• Property tax is a recurring tax imposed by local authorities on the ownership of property.
  
• It is levied on real estate including land and buildings.
  
• The primary aim is to fund civic services and infrastructure.
  
• It ensures steady revenue for municipal bodies.
  
• It is mandatory for all property owners within urban and rural limits.
  

Types of Properties Taxed

• Residential properties such as houses and flats are taxable.
  
• Commercial properties including shops and offices are included.
  
• Industrial properties fall under taxable assets.
  
• Vacant land within urban limits is also taxed.
  
• Agricultural land is usually exempt unless used for commercial activities.
  

Tax Assessment Methods

• Annual rental value method assesses tax based on expected rent.
  
• Capital value method uses the current market value of the property.
  
• Unit area value method calculates tax based on per unit area valuation.
  
• Assessment varies by city and state regulations.
  
• Rates and methods are notified by local governing bodies.
  

Payment and Collection Process

• Taxpayers receive annual or half-yearly bills from local bodies.
  
• Payments can be made online or through local offices.
  
• Delayed payments attract penalties and interest.
  
• Receipts serve as proof of ownership and compliance.
  
• Regular payment is essential for legal property documentation.
  

Authorities Involved in Property Taxation

• Municipal corporations handle property tax in urban areas.
  
• Panchayats or local councils manage rural property taxes.
  
• State governments regulate tax policies and guidelines.
  
• Special assessment boards assist in valuation processes.
  
• Tax departments maintain records and oversee enforcement.