Ahmedabad Property Tax: There is a multitude of taxes that an owner must pay when investing in property. While registration and licensing fees are one-time expenditures, the property tax is an ongoing fee that must be submitted to the local authorities.
Revenue collection supports the respective government in providing essential services to its population.
Likewise, citizens in Ahmedabad must submit a property tax to the municipal Corporation each year.
This property tax is very easy to pay, and anyone and everyone can view Property tax bill online for faster and hassle-free payments.
The rate of the property tax varies from state to state, and in Ahmedabad, it is payable to the AMC as an AMC Tax.
In this article, we go through all the ins and outs of property tax payment in Ahmedabad and every facet of it.
After you’ve gone through this, the vast majority of the rest of the procedure, whether it’s paying taxes or coping with the AMC tax bill name change online, shouldn’t be too complicated.
AMC Tax
- What is a property tax?
- Who do Ahmedabad property owners actually owe their property taxation?
- What is the equation for determining the property tax?
- How are the values of the factors decided?
- What details are featured in the property tax bills?
- How to pay the property tax offline?
- What are the steps followed for the payment of the tax online?
- When is the last date for the payment of the property tax?
- What are the potential consequences of failing to pay your taxes on time?
- Are there any rebates available?
- FAQs
What is a property tax?
Property taxes are fundamental to the government’s revenue generation and are levied by the local government or municipal Corporation on property holders every year.
All physical real estate that may be acquired by individuals is considered property. This encompasses rental properties, buildings, workplaces, and other assets.
To be more explicit, everything listed below, whether utilized for residential or industrial purposes, is treated as property and liable to property tax.
- Residential Houses
- Buildings for offices
- Buildings rented out as residential property
- Buildings rented out as Commercial Property
As a consequence, if a person holds land, he or she will have to submit the government tax on it on a yearly schedule.
Who do Ahmedabad property owners actually owe their property taxation?
Property owners in Ahmedabad owe all their property taxes to the Ahmedabad Municipal Corporation.
The Ahmedabad Municipal Corporation (Amdavad Municipal Corporation) was constituted in July 1950 under the Bombay Provincial Corporation Act, 1949, to supervise Ahmedabad’s civic infrastructures and other amenities along with the entire administration.
Ahmedabad is the nation’s very first major city to undertake property tax reforms with a zero-litigation reputation.
What is the equation for determining the property tax?
There are five crucial attributes that go into estimating the valuation that will be used to compute the property tax payment.
The factors are mentioned below:
- Carpet Area of the Property
- Location of the Property, denoted by F1
- Age of the Property, denoted by F2
- Type of the Building, denoted by F3
- Occupancy of the Property, denoted by F4
It’s worth remembering that the rate for residential property is INR 16 per square meter, whereas the tariff for non-residential property is INR 28 per square meter.
In a nutshell, the property tax is determined as a product of the above-mentioned components.
Property tax = INR (Carpet Area* Rate/Square meter * F1* F2 * F3 * F4)
How are the values of the factors decided?
The factors’ values are predetermined and are listed below for the various scenarios under discussion.
- The first factor is where the property is located– which is taken into account for both residential and non-residential properties and denoted by F1.
- For a Posh area, the rating is 1.6.
- For a Good area, the rating is 1.1.
- For a Medium area, the rating is 0.9.
- For a Poor area, the rating is 0.6
- The second element is the property’s age, which is indicated by F2 and is evaluated for both residential and non-residential properties.
- If the age of the property is less than ten years, then the rating is 1.0.
- For buildings whose age is in the range between 10 years to 20 years, the rating is 0.85.
- For buildings whose age is in the range between 20 years to 30 years, the rating is 0.7.
- For buildings whose age is in the range between 30 years to 40 years, the rating is 0.6.
- For buildings over the age of 40 years, the rating is 0.5.
- The third element is the type of the building, which is indicated by F3 and is evaluated exclusively for residential properties.
- For Individual Bungalow, the rate is 1.5.
- In the case of Tenement, the rate is 1.
- For Row House, the rate is 1.00.
- For a Flat, the rate is 0.7.
- For a Gamtal, the rate is 0.7.
- For a Pole, the rate is 0.7.
- In the case of Chawl occupying more than 25 sq. Mts, the rate is 0.5.
This non-residential category is allotted a rating based on the characteristics of the business.
If it’s a commercial building, the rating is 7.0; any recreational venues, stores, restaurants, and hotels, or lodgings, the grade is 6.0; businesses and industries and factories, the rating is 2.0; and social and educational institutions, the rating is 2.0.
The properties mentioned below have a 1.0 rating.
- Water Tank along with Water Pump Room
- Boarding or Lodging or Hostels that are run by Public Charitable Trust or by any Religious Institutions
- Ashrams
- Library
- Drainage pumping stations
The following properties have been given a zero-rating.
Places associated with religious significance, which include:
- Temple
- Mosque
- Jain Temple
- Church
- Roza
- Tombs
- Sikh Temple
- Public Bath
- Graveyard
The fourth element is the occupancy factor of the property, which is indicated by F4 and is evaluated for both residential and non-residential properties.
- The residency rating for the owner is 1, and the non-residency rating is also 1.
- The residency rating for the tenant is 1, and the non-residency rating is 2.
What details are featured in the property tax bills?
The accompanying data will be contained on your property tax bill:
- Full Cash Value
- Taxable Value
- Assessed Value of the Property
How to pay the property tax offline?
You have the option of solving some issues and paying your bills offline.
However, paying online is recommended to just save time, amount effort, and human resources.
AMC has established 58 civic centers throughout the city where payments can be made in cash, credit card/debit card, or cheque/demand drafts, along with other alternatives.
Furthermore, AMC has established a Mobile Tax Collection Van, which will be accessible throughout the month in different locations.
What are the steps followed for the payment of the tax online?
The Amdavad Municipal Corporation has made it so much easier to deposit property taxes. Individuals are no longer compelled to pay their property tax dues in person at the Corporation’s offices.
Alternatively, consumers may just log in to the Municipal Corporation’s site and complete the payment amount. To deposit your property tax online, follow the instructions here below:
- Step 1: At first, the consumer will have to visit the official website of Ahmedabad Municipal Corporation. Then they will be required to click on the “Online Service” icon, which will appear on the page.
- Step 2: Next, the consumer will need to enter the Tenement Number in the allotted box and click on the “Search” option.
- Step 3: In the next step, the name of the owner, the corresponding address, occupier (if applicable), and the due tax amount will be shown on the screen. The consumer will have to select the “Pay” button to proceed to the payment of the due tax amount.
- Step 4: After successful completion of the above-mentioned steps, the consumer will be redirected to a page that will display a reconfirmation of the tenement details and the amount to be paid. The same page will also contain fields requiring the credentials of the owner, namely:
- Mobile number
- Email address
- Step 5: To continue with the payment, the consumer will have to click on the “Continue” button. The consumer will be then be redirected to the payment gateway. Payment can be made via:
- Internet Banking
- Debit Card
- Credit Card
- Step 6: After a successful transaction, the consumer will receive a Transaction Reference Number as an acknowledgment of the payment done. Payment will be credited into the Municipal Corporation’s account within two business days.
The payment details will be emailed to the owner of the property.
If you don’t have a registered email address, you can download the tax receipt from the AMC webpage:
- Step 1: At first, the consumer will have to visit the official website of Ahmedabad Municipal Corporation. Then they must click on the “Online Service” icon, which will appear on the page. Then they will have to opt for the “Quick Pay” option from the drop-down menu and select the “Payment Receipt” icon.
- Step 2: From the Service Name option, the consumer will need to select the “Property Tax” button and then enter the respective Tenement Number, and next, click on the “Search” option.
- Step 3: Next, the consumer will have to click on the “View” box against the corresponding receipt they need to download. They will then be redirected to a new page containing the said receipt.
- Step 4: They will then have to press on the “Select Save as PDF” option, then click on “Save” for successfully downloading the receipt and keep it for future reference.
When is the last date for the payment of the property tax?
In Ahmedabad, property tax bills are levied every six months. Bills must be completed by March 31 for the first half of the year and by October 15 for the second half of each year.
The timeframes, meanwhile, are not strongly fixed and may significantly alter depending on the AMC’s judgments.
What are the potential consequences of failing to pay your taxes on time?
For failures and significant delays in settlement of property bills, the AMC levies a late penalty of 2% per month, which is frequently imposed on the subsequent bill.
Are there any rebates available?
Discounts on property taxes are issued by the AMC occasionally and are at the AMC’s complete authority.
When you file your taxes online, you might get discounts of approximately 2%.
AMC has offered a 10% tax discount for property tax payments done in advance for the 2020-21 budgetary year.
The basic tax is lowered by 20% for non-residential properties that are not on the ground level.
AMC has proposed a 50% interest rebate on pending property tax payments if submitted between January 16 and February 15, 2020.
FAQs
Question: What categories of properties are completely exempt from property taxes?
Answer: Various institutions are immune from paying the property tax. The Ahmedabad Municipal Corporation has granted tax-exempt status for the following:
- Institutions of religion.
- Worship sites.
- Crematoriums.
- Public Baths.
- Madrasa and Path Shala or similar educational institutes.
Question: Which site to visit for paying the taxes online?
Answer: The government’s website may be found at http://ahmedabadcity.gov.in/portal/web? To pay your AMC tax bill online, search for the quick pay button.
Question: What should you do if the tenant has evacuated the property?
Answer: In this respect, a Tax Occupier Change (TOC) application must be submitted. Include documentation for this purpose, such as the tenant’s ownership confirmation.
Question: When should I deposit the advance tax?
Answer: Every fiscal year, the advance tax system is normally introduced in April. Newspaper articles are issued in this matter.
Question: What name should I put my property tax payment cheque in?
Answer: The cheque must be drawn out to “Municipal Commissioner, Ahmedabad.” The ward, Tenament Number, and contacting Number should all be stated on the reverse of the cheque.