General Applicability of Tax

• Property tax may not be immediately applicable to under-construction properties in most cities.
  
• Tax liability generally begins after the completion or occupancy certificate is issued.
  
• However, some local bodies may levy tax on vacant land or partially built structures.
  
• Applicability depends on local municipal rules and assessment policies.
  
• Owners should verify specific provisions in their city’s property tax regulations.
  

Tax on Vacant Land Before Construction

• Many municipalities impose vacant land tax even before construction starts.
  
• The tax is assessed based on plot size, location, and usage category.
  
• This tax continues until the building is assessed post-completion.
  
• Owners must declare land status to avoid incorrect billing.
  
• Delay in declaring construction commencement can attract penalties.
  

Assessment Upon Completion

• Property tax is formally levied once the building is deemed fit for occupation.
  
• The issuance of completion certificate or occupancy certificate triggers assessment.
  
• Post-completion, the property is assigned a tax identification number or assessment number.
  
• The municipal authority assesses the built-up area, type of construction, and usage.
  
• A demand notice is issued, and periodic billing begins thereafter.
  

Self-Declaration and Inspection Process

• Owners may be required to file a self-assessment form during or after construction.
  
• Municipal inspectors may conduct a site visit to confirm construction status.
  
• Failure to report completion can lead to backdated assessment and penalty.
  
• In some areas, temporary structures may also attract tax liability.
  
• It is important to update municipal records regularly during the construction phase.
  

Legal and Documentation Considerations

• Documents such as building permits, sanctioned plans, and work progress certificates may be reviewed.
  
• Legal ownership and land use must be confirmed before assessment.
  
• Some exemptions may apply if the building is constructed for personal use or charitable purposes.
  
• Builders or developers may bear tax responsibility until individual units are registered.
  
• After possession is handed over, the buyer becomes liable for their share of the property tax.