Nature of Property Tax Receipts

• Property tax receipts are issued by municipal authorities upon tax payment.
  
• They indicate that the person listed has paid taxes on the property.
  
• Receipts include details like property number, location, and owner’s name.
  
• They reflect the taxpayer’s responsibility for the property in municipal records.
  
• These documents help establish a financial link between the payer and the property.
  

Role in Establishing Possession

• Receipts may serve as supporting evidence of possession or occupancy.
  
• Regular payment over time implies uninterrupted use or control of the property.
  
• They are useful when combined with other documents to show long-term possession.
  
• In disputes, courts may consider them as secondary evidence of interest in the property.
  
• Possession alone does not equal ownership, but it can strengthen claims.
  

Limitations as Proof of Ownership

• Tax receipts do not constitute legal title or ownership by themselves.
  
• They do not substitute for registered sale deeds or title documents.
  
• Municipalities may issue tax receipts in good faith without verifying title.
  
• Receipts can be issued in the name of tenants, caretakers, or holders without ownership rights.
  
• Courts and registrars require registered documents for ownership validation.
  

Acceptable Supporting Role in Legal Matters

• When presented with sale deed, gift deed, or inheritance documents, tax receipts support ownership.
  
• They help demonstrate ownership continuity and legal compliance.
  
• Used during bank loans, NOC applications, or mutation procedures as supplementary proof.
  
• Mutation entries supported by tax receipts often complete the legal paper trail.
  
• Receipts help resolve discrepancies in government or municipal records.
  

When Tax Receipts Become Crucial

• In cases of missing or disputed title documents, long-standing tax records may be considered.
  
• Useful in proving ownership in adverse possession or inheritance matters.
  
• Required during name transfer, property mutation, and sale formalities.
  
• Essential for availing exemptions, rebates, or building approvals.
  
• They add weight to legal claims but must be backed by valid title deeds.