by DigitechProperty Tax in Pune
Earlier Pune city was only known for its cultural heritage and rich educational institutes. But with time the city has also gained popularity in real estate market. Hence, if you want to owe a property in this city, you must firstly know about property tax. This tax is imposed on all the residential, commercial and industrial properties.
Today we are here to discuss everything about property tax, to spread awareness among property owner and let them know its benefits. So, let’s get started with basics of property tax.
What is property tax in Pune?
Municipal authorities impose local tax on property owners. In Pune this property tax is collected by Pune Municipal Corporation (PMC). This tax is evaluated as per the assessed value of the property which is then funded to maintain local services like waste management, street light and other services to provide quality life to the people.
Why property tax in Pune matters?
Property tax in Pune helps government to maintain the infrastructure, and services that will improve the quality life of a city. Through these taxes essential services like sanitation, roads, public safety and schools are maintained. The Pune Municipal Corporation (PMC) depends on property taxes to provide all such services to its residents.
Key factors affecting rates of property tax in Pune
Property Type
Property tax will depend on the type of property, whether yours is a residential, commercial or industrial property. The tax rates for residential properties are relatively lower as compared to commercial and industrial properties.
Property size and usage
The size and property usage also impacts the tax rate. Bigger properties that are employed for commercial purposes will have higher tax rates.
Location
There are various zones in Pune, and property tax will differ from zone to zone. Property tax will be greater in higher demand area as compared to less sought-after areas.
Property Age
Your property age will also impact the tax rates. You may receive tax benefits if your property is older, while newer construction will face higher tax rates.
Ownership and Usage
Property tax rate will also impact for tenant and owner. Owners usually bear the tax rates, while tenants are indirectly impacted in the form of rent.
Government Policies
Property tax rates can also get impacted through government policies and amendments. Hence, you must remain updated with the charges.
Calculating property tax
Pune property tax is calculated based on “Ready Reckoner Rate”. State government decides this rate and revises it as required. Below are some of the steps you must follow to calculate property tax:
Determine property tax
Make classification of your property based on residential, commercial or industrial.
Know the area
Know the Ready Reckoner Rate in your zone.
Assessment
Calculate the assessed value of your property. It is usually a percentage of Ready Reckoner Rate. The percentage will depend on your property type.
Calculate tax
Now do the multiplications of assessed value with property tax rate of your zone and type of property.
Payment and due dates
Property tax in Pune is usually paid per year. The payment date of property tax is decided by PMC. Everyone has to pay the property tax on time to avoid penalties and interest charges. You can either make the tax payment online or through PMC’s official website or at designated banks.
Tax benefits and exemptions
The property owners in Pune get some exemptions in tax from government. For instance, senior citizens, disable person may get some concessions. Also certain properties like educational institutions may receive exemptions in taxes.
Recent development and reforms
In recent years, various reforms are introduced by property tax system. Let’s know about them.
Digitalization
PMC has adopted digitization and hence facilitates property owners to check their tax details, track their payment history and pay online.
Revised Tax Rates
Government revises the tax rates and assessment criteria with time. You can check these changes in property values and economic conditions. Being a property owner you must remain updated about latest notifications.
Public Awareness Campaigns
To maintain compliance, PMC makes the people aware about the tax obligations and the importance of paying it on-time.
Grievance redressal
An online portal has been made to resolve the issues of property owners related to property tax assessments and payments.
Conclusion
You must understand the local property tax rates. This is an important aspect for all property owners, investors and tenants. Property tax will not only take some portion of your finance, but will also give its contribution for the city development. You must keep yourself informed about the factors that can influence the property tax rates. You should calculate your property tax and know about the available exemption or benefits to take the advantage of that opportunity.
Being a responsible citizen of Pune, you must give your contribution towards city’s growth and enjoy the benefits of living in that city.
