How to Pay Property Tax Online

All property owners are liable to pay annual property tax to local municipal authorities. Similar to income tax, property tax is mandatory and offers exemptions to certain owners.

Your property tax goes towards essential services such as fire safety, water supply, sewage treatment, and garbage removal. It funds the development of your local infrastructure, which improves your property’s value, fetching a better price when selling your property.

How Is Property Tax Calculated?

Property tax calculation differs among cities and is determined by the local municipal corporations based on size, type of property, and location. Here’s how property tax is calculated for metropolitan cities such as Mumbai, Delhi, and Bengaluru.

Property Tax Calculation for Mumbai

In Mumbai, the Brihanmumbai Municipal Corporation (BMC) considers various factors to calculate property tax. The following is the formula for calculating property tax in Mumbai.

Property Tax = Tax Rate x Capital Value

Capital Value = Base Value x Total Floor Space x Type of Building x Age Factor x Usage Factor x Floor Level

Here’s a breakdown of all the factors.

• Base Value is the rate for the area.

• Total floor space refers to the total square footage, excluding the walls.

• Type of building, whether residential or commercial.

• The age factor refers to the age of the building

• Usage refers to the purpose for which the property is used.

• Floor level refers to the floor on which the property is located.

Property Tax Calculation for Delhi

In Delhi, property tax is calculated based on the property’s annual value and tax rate. Here’s how the Municipal Corporation of Delhi (MCD) calculates the property tax for Delhi.

Property Tax = Annual Value x Tax Rate

Annual Value = Unit area value per square metre x Structure factor x Age factor x Covered property area x use factor x Flat factor x Occupancy factor

Here’s a breakdown of all the factors used to calculate the annual value of your property.

• Unit area value per square metre is the square metre value in your area and depends on your property category.
• The structure factor is assigned based on the type of construction, such as RCC (Reinforced Cement Concrete) or other.
• The age factor is determined by the property's age.
• Covered property area is the total floor area of a property.
• The use factor is assigned based on the usage of the property.
• Flat factor is the total covered area of a flat.
• The occupancy factor is assigned based on whether the property is self-occupied or rented out.

Property Tax Calculation for Bengaluru

In Bengaluru, property tax is calculated based on the Unit Area Value (UAV) fixed by the Bruhat Bengaluru Mahanagara Palike (BBMP). Here’s how the property tax for Bengaluru is calculated.

Property Tax (K)= (G-I) x 20% + Applicable Cess (24% of annual property tax).

Here’s a breakdown of the formula,

G=Gross Unit Area Value= (A+B+C)

I= G x D/100

A = let out area of property x property’s per square ft. rate x 10 months

B = Self-occupied area of property x property’s per square ft. rate x 10 months

C = Parking area of property x property’s per square ft. rate x 10 months

Here’s how property tax for Bengaluru properties is calculated step-by-step.

Step 1. Built up area x Unit Area Value x 10 months = Total 1 (T1)

Step 2. T1 - Applicable Depreciation = Taxable Annual Value

Step 3. Taxable Annual Value x 20% = Property tax

Step 4. Property tax x 24 % = Cess

Step 5. Property tax + Cess = Gross Property Tax payable

Step 6. Gross Property Tax payable x 5% = Rebate for early payment

Step 7. Gross Property Tax payable - Rebate = Net property tax payable

How to Pay Property Tax Online

You can skip the queues at the municipal office and pay property tax online from the comfort of your home, any time and anywhere. Here’s how you can pay your property tax online.

Step 1: Visit the official website of your city’s Municipal Corporation.

Step 2: Enter the Property Account No. or the Application or PID No. to log in to your account.

Step 3: A new page will appear on the screen. Enter the ward, name, and all the details asked.

Step 4: Once you’re logged in, review property details and click on ‘Accept’.

Step 5: The year-wise total outstanding amount will appear on the page.

Step 6: Enter the property tax amount, click on ‘Online Payment,’ and select your payment mode, such as net banking, credit card, or payment gateways.

Step 7: Click on ‘Pay now’ and download the payment receipt.

What if You Don't Pay Your Property Tax on Time?

Failing to pay property tax on time can lead to hefty penalties.

In Mumbai, the BMC imposes an increasing penalty on the outstanding property tax amount after 3 months of receipt of the bill at 2% per month as per section 202 of the Mumbai Municipal Corporation Act, 1888.

If the property tax is not paid within the stipulated period, the municipal corporation initiates the process of seizing goods and immovable property of the defaulters, which is sold to recover the outstanding tax amount.

In Delhi, as per the Delhi Municipal Corporation Act 1957, the defaulter is liable to pay a penalty of 20% of the outstanding tax amount, along with the tax amount and the notice fee.

If the defaulter fails to pay the tax within 30 days of receiving the demand notice, the municipal corporation initiates the process of seizing and selling their goods and immovable property to recover the outstanding amount.

In Bengaluru, property owners who fail to pay the outstanding tax amount for two consecutive years are charged 100% of the property tax as a penalty with 9% annual interest under the BBMP (Amendment) Act 2024.

Tax Exemption for Property

In India, the following properties are typically exempt from tax.

• Residential properties within 500 sq. ft. are fully exempt from property tax.
• Properties with carpet area between 500-700 sq. ft. can receive a partial exemption.
• Places of worship, heritage sites, public burials, and properties used for charitable purposes are exempt from property tax.
• Sportsmen who received awards in International games are exempt from paying property tax.
• Residential properties owned by ex-servicemen or war widows are exempt.
• Certain municipalities may offer special rebates or exemptions to senior citizens on their primary residential property.

FAQs

How can I pay property tax online in India?

You can pay property tax online in India by visiting your city’s official property tax web portal and entering the details asked. You can pay via net banking, debit card, credit card, or UPI.

Which website is used for online property tax payment?

To pay your property tax online, visit your city’s municipal corporation website, enter your details, and pay the tax amount.

What details are required to pay property tax online?

You need to enter your application/property account no, ward, and owner name along with other details to pay your property tax online.

How can you download the property tax receipt after online payment?

Once you’ve paid your property tax online, navigate to the ‘View Payments’ section and enter your PID number. Select the bill you wish to download and click on ‘Download Receipt’.

Is it safe to pay property tax online?

Yes, it is completely safe to pay your property tax online. Make sure not to share any OTP generated from the municipal corporation’s web portal with anyone.

What happens if I miss my property tax payment deadline?

If you miss your property tax payment deadline, the municipal corporation may impose a penalty and interest, which must be paid along with the outstanding tax.