Property owner pays tax to the government for a certain property/ land which are known as property tax. This tax could be paid either to Municipal Corporation or the state government depending on government policies. The word "property" here means any type of tangible real estate owned by an individual including office buildings, rented premises to third parties and houses
In order to estimate/ calculate tax based on specific criteria by the government of India, property has been classified in following four categories:
In India, one needs to pay tax only for first two categories mentioned above, i.e. Land and Improvements on land. On the behalf of the government, municipality assesses/ appraises the monetary value of the property and collects tax monthly, quarterly, semi annually or annually. The tax amount hence collected can be utilized in various development projects. The rate of such tax varies from location to location.
Akshar Blue Chip IT Park, 703, Thane - Belapur Rd, Turbhe, Navi Mumbai, Maharashtra 400705