Every person who owns a property should pay property tax. Taxes are one of the primary sources of revenue of the Government. The money gained is used to pay their employees, provide incentive schemes for various companies and to launch different welfare schemes for the people of the country. To further understand the procedure as well as legal provisions related to the payment of property tax you shall seek advice from Lawyers In Delhi.
Property tax-
The tax amount paid by the landowner to the municipal council or the local government of their region is called property tax. The taxpayers need to pay the amount every year. The assets of real assets include property, office complexes and domestic residences which have been rented out to a third party.
The property tax is levied by the government, also known as house tax, on the physical real estate possessed by an individual and free legal advice.
The benefits of paying the property tax
Paying the property tax could be beneficial as-
To settle property disputes- the bill of property tax and its details are important in proving property ownership in the event of a property dispute. Thus, when purchasing a property, you shall change the title in the municipal archives. The deed of property, however, shall not be passed to the new owner unless all arrears are fully paid. In case the records are not up to date, the previous owner’s would keep repeating in the tax receipt.
Could be helpful in property registration- while having the property registered in your name with the municipal records, you may be requested to present documents to show the ownership of the property. The copy of the sale deed, approval from the society, the application duly filled, photo and proof of residence, receipt of the property tax paid previously and any other document required to alter the name on the property. Also, the tax receipt is required while applying for loans against the property.
Required for the home loans- In case of seeking a home loan while already owning a property, a property tax bill details are required. To have a property already under your name could have a positive effect on your credit score and hence increasing your chances of a larger loan.
Disadvantages of not paying house tax in India-
Not paying your property tax on time could have consequences for you. For example, Brihanmumbai Municipal Corporation (BMC) recently decided that the valuables belonging to property tax defaulters would be seized.
It has to be understood that property taxes are added to the Municipal funds, from which salaries of the municipal workers, such as the workers sweeping the roads or maintaining the sewage system of the areas, etc are paid.
There is a penalty for not paying the taxes on time. Interest could be charged as fine on the amount which is due to be paid as a house or property tax. For example, MCD charges 1% on the amount due per month, also, Bruhat Bengaluru Palike applies an interest of 2% on the amount due to be paid as tax.
While selling the property, non-payment of the tax could be one of the conditions of the contract. The buyer could demand that the seller should clear all past dues related to the property before sealing the deal.
Conclusion
As could be understood from the above mentioned discussion, paying the property tax is important as the authorities could levy charges for the non-payment of the taxes. To have a better understanding of the procedure required paying property tax, one could Ask A Legal Question Online Free or could consult experienced Lawyers In Bangalore.
Lead India offers you a wide pool of experienced lawyers who could provide you with the advice or assistance required to pay taxes for the property.
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