Income Tax

Taxability of Salary Income, Perquisites and Allowances

Taxability of Salary Income, Perquisites and Allowances

Taxability of Salary Income, Perquisites and Allowance: Salary is the reward received by an individual periodically for their service due to an express or implied contract. The actual receipt of salary in the former year is not substantial as far as its taxability is concerned. The presence of the employer-employee relationship is the sine-qua-non for taxing a specific receipt under the title “salaries”. For instance, the salary paid to a partner by their partnership firm for carrying on a business is chargeable as “Profits and Gains from Profession or Business” and not as “Salaries”.

Similarly, the salary received by the MP or MLA is taxable as “Income from other sources”, but if the Minister of State or Central Government received the salary, it should be charged to tax under the title of “Salaries”. When an assessee receives his pension from his former employer, it is taxable as “Salaries” In contrast, the allowance received on their death by their family members, also known as Family Pension, is taxed under the pension title of “Income from other sources”.

The Term “Salary” Includes What?

Section 17(1) of the Income-tax Act gives an all-inclusive definition or explanation of the term “salary”, including

  • Wages
  • Annuity or pension
  • Gratuity
  • Fees, Commission, perquisites or profits instead of salary
  • Advance of Salary
  • Amount transferred from unrecognized provident fund to recognized provident fund
  • Contribution of an employer to a Recognized Provident Fund over the designated limit
  • Leave Encashment
  • Compensation as a result of variation in Service contract, etc.
  • The contribution made for the account of an employee by the Central Government under a notified scheme for pension.

Deduction from Salary

The following deductions from salary are permissible according to the Income Tax Act (Section 16).

  • Professional or Employment tax levied by the State Government
  • Entertainment Allowance- Deduction regarding Entertainment Allowance is provided to a government employee to the extent of rupees 5000/- or 20% of their salary or the actual amount received, whichever is less.

It is to be noted that the standard deduction of rupees 50,000/- is available from the salary income with effect from 1st April 2019, i.e., 2020-2021 onwards.

What is “Perquisite”?

“Perquisite” may be defined as any casual benefit attached to an office or position in addition to salary or wages.

“Perquisite” is defined in section 17(2) of the Income-tax Act comprising:

  • Value of rent-free accommodation and service provided by the employer [Section 17(2)(i)]
  • Any sum paid by an employer regarding a commitment which was owed or payable by the assessee [Section 17(2)(ii)]
  • Value of any benefit provided for free or at concessional rate to certain employees [Section 17(2)(iii)]
  • The value of any specified sweat equity shares or securities allotted, directly or indirectly, by the former employer or present employer, free of cost or at a concessional rate to the assessee [Section 17(2)(vi)]
  • The value of any contribution by the employer in respect of the assessee, to an established superannuation fund, to the extent it exceeds rupees one lakh [Section 17(2)(vii)]; and
  • The value of any other margin benefit as may be prescribed [Section 17(2)(viii)].

Valuation of Perquisites

As a general rule, in the hands of an employee, the cost paid to the employer is the taxable value of perquisites. However, certain specific rules for the valuation of certain perquisites have been laid down in Rule 3 of the IT Rules. These are summarily mentioned below:

Valuation Provided by Employer for Residential Accommodation

  • State or Union Government Employees- The value of perquisite is equal to the license fee, which the Government determines as reduced by the rent payable by the employee.
  • Non-Government Employees- The value of perquisite is equal to 15% of the salary of cities which have more than 25 lakh of the population (10% of wages in cities where the population according to 2001 census is surpassing 10 lakh but not surpassing 25 lakh and 7.5% of salary in areas where the population according to 2001 census is below 10 lakh or 10 lakh.) However, the accommodation provided is not owned by the employer but is taken on rent or lease. The perquisite value will be either 15% of salary or the exact amount of lease or rent, which the employer pays, whichever is lower. In both cases, the perquisite value would be reduced by the rent, if any, actually paid by the employee.

Furnished Accommodation Value

The value of furnished accommodation is the value of unfurnished accommodation raised by 10% p.a of furniture cost (including TV/ AC/ refrigerator/ radio/ and other gadgets). If the furniture is hired from a third party, then the value of unfurnished accommodation would be raised by the hire charges, payable by the employer. However, if any payment is recovered from the employee regarding the above, it would be deducted from this amount.

4.3 Valuation provided by the employer for hotel accommodation

The value of perquisite for hotel accommodation provided by the employer will either be the actual charges payable to the hotel or 24% of salary, whichever is lower. The above value would be reduced by any rent paid or payable by the employee. It may be noted that no prerequisite would arise if the employee is provided with accommodation for their transfer from one place to another for 15 days or less.

Perquisite Provided by the Employer of a Motor Car

With effect from 1st April 2008, if an employer granting such facility to his employee is not accountable to pay fringe benefits tax, the value of such perquisite shall be:

If the employer owns or leases a motor car; Exclusively used for official purposes: If the motor car is exclusively used for official purposes, it will not be taxable in employees’ hands irrespective of the engine’s cubic capacity.

Used for both personal and official purposes:

If the employer compensates running and maintenance cost

Within 1.6 liters, the cubic capacity is – Rs 1,800 p.m. + Rs 900 p.m. (Given that the driver is provided)

If it exceeds 1.6 liters, the cubic capacity is – Rs 2,400 p.m. + Rs 900 p.m. (Given that the driver is provided)

If the employer compensates running and maintenance

Within 1.6 liters, the cubic capacity is – Rs 600 p.m. + Rs 900 p.m. (Given that the driver is provided)

If it exceeds 1.6 liters, the cubic capacity is – Rs 900 p.m. + Rs 900 p.m. (Given that the driver is provided)

Exclusively used for the personal purpose

If the motor car is used exclusively for personal purposes, it will be fully taxable in employees’ hands irrespective of the engine’s cubic capacity.

The taxable value is as under

The actual cost of maintaining and running a motor car

  • Adding: Salary of the driver
  • Adding: Normal wear and tear @10% per annum of the actual cost of a motor car
  • Less: Any charges recovered from the employee

If a motor car is owned by the employee but running and maintenance and driver’s salary compensated by the employer:

Exclusively used for official purpose

If the car is exclusively used for official purposes, it will not be taxable in employees’ hands irrespective of the engine’s cubic capacity.

Used for both personal and official purpose

If the employer reimburses running and maintenance cost

Within 1.6 liters, the cubic capacity is – Actual expenses fewer than Rs 2,700 p.m.

If it exceeds 1.6 liters, the cubic capacity is – Actual expenses fewer than Rs 3,300 p.m.

If an employee owns any other automotive conveyance but running, an employer reimburses maintenance.

Exclusively used for official purpose

If the car is exclusively used for official purposes, it will not be taxable in employees’ hands if the engine’s cubic capacity is within 1.6 liters.

Used for both personal and official purpose

If the employer reimburses running and maintenance cost

Within 1.6m v liters, the cubic capacity is – Actual expenses fewer than Rs 900 p.m.

If it exceeds 1.6 liters, the cubic capacity is – Non-Applicable

Perquisite Arising from Supply of Electric Energy or Gas or Water

The perquisite value shall be settled as the value paid by the employer to the agency supplying electric energy or gas, or water. If the employer supplies from their resources, then the value of the perquisite will be the manufacturing cost incurred by the employer per unit. However, any payment received from the employee regarding the above would be deducted from the amount. [Rule 3(4)]

Free or Concessional Educational Facility:

The expenditure incurred by the employer would be the value of the prerequisite.

If the educational facility is owned and maintained by the employer, the value would be nil or zero if the value of the benefit per child is less than rupees 1000/- per month or else if the reasonable cost of such education is similar in an institution near the location. [Rule 3(5)].

Free or Concessional journeys provided by an undertaking engaged in the carriage of goods or passengers:

Ve the value at which such amenity is offered to the general public will be the value of the perquisite. Any payment received from the employee regarding the above will get deducted from the amount. However, these provisions do not apply to the airline or railway employees.

Provision for the gardener, personal attendant watchman or sweeper:

The actual cost borne by the employer will be the value of benefit resulting from the provision of any of these. Any payment received from the employee regarding the above will get deducted from the amount. (Cost to the employer about the above will be the paid or payable salary). [Rule 3(3)].

Value of some other fringe benefits: 

  • Concessional or Free of Interest loans: The perquisite value will be the excess of payable interest at the prescribed interest rate over interest if any, actually paid or payable by the employee or any member of their household. The specified rate of interest would be the rate charged by the State Bank of India as on the first day of the applicable former year regarding loans of the same type and purpose advanced by it to the general public. The prerequisite is to be calculated based on the maximum monthly outstanding balance method. However, loans up to rupees 20,000/-and loans for medical treatment specified in Rule 3A are exempt provided with the same are not compensated or refunded under medical insurance.
  • Free meals value: The perquisite value regarding free food and non-alcoholic beverages provided by the employer, not liable to pay fringe amenity tax, to an employee, will be the expenditure incurred by the employer. Any payment received from the employee regarding the above will get deducted from the amount. However, perquisite value will not be taken if, during working hours, food and non-alcoholic beverages are provided, and certain conditions particularised under Rule 3(7)(iii) are fulfilled.
  • Gift or voucher or token value: The perquisite value of any gift, or voucher, or token regarding which such gift or voucher or receipt may be received by the employee or member of their household from the employer, not accountable to pay fringe benefits tax, will be the sum equivalent to the value of such gift, voucher or token. However, perquisite value will not be taken if the value of such voucher or token is below rupees 5000 in the aggregate during the former years.
  • The credit card provided by the employer: The perquisite value concerning expenses incurred by the employee or any member of their household is charged to the credit card which is provided by the employer, not liable to pay fringe benefits tax, which is reimbursed to an employee by the employer will be taken to such amount paid or reimbursed by the employer. However, perquisite value will not be accepted if the expenses are incurred exclusively for official purposes and specific provisions mentioned in Rule 3(7)(v) are fulfilled.
  • Club membership provided by the employer: The perquisite value concerning the amount paid or reimbursed to an employee by an employer, not liable to pay fringe benefits tax, against the expenses incurred in a club by such employee or any member of his household will be taken to be such amount reimbursed by the employer as deducted by any amount recovered from the employee on such account. However, perquisite value will not be accepted if the expenditure is incurred exclusively for business purposes and specific provisions mentioned in Rule 3(7)(vi) are fulfilled.

The value of any other amenity or benefit provided by the employer will be determined based on the cost of the employer under an arms’ reach transaction as decreased by the employee’s benefaction.

The market value of any specified sweat equity share or security, being an equity share in a company, the date on which the option is exercised by the employee, will be determined as follows:

  • In a case where the date on which the exercising of the option takes place, the companies’ share is listed on a distinguished stock exchange, the fair market value will be the aggregate of the opening and closing price of the share on the date of the stock exchange.
  • In a case where the date on which the exercising of the option takes place, the companies’ share is not listed on a distinguished stock exchange, the fair market value will be such, as determined by a merchant banker on the mentioned date.
  • The just market value of any specified security, not an equity share in a company, the date on which the exercising of the option takes place by the employee will be such value as determined on the specific date by a merchant banker.

Perquisites Exempt From Income Tax

Some occurrences of perquisites exempt from income tax are mentioned below:

Perquisites allowed outside of India by the Government to a citizen of India for rendering services outside India (Sec. 10(7)).

The official rent-free residence is provided to an Official of Parliament, or Judge of High Court or Supreme Court, Union Minister or Leader of Opposition in Parliament.

Perquisite will not arise if concessional or interest-free loans for medical treatments of specified diseases are made available in Rule 3A or where the loan is trivial not exceeding in the aggregate rupees 20,000/-

Perquisite shall not arise in regards to expenses on telephones or a mobile phone which on behalf of the employee is incurred by the employer.

Allowance

Allowance is characterized as a fixed or definite quantity of money or other substance which is given routinely in addition to the salary for meeting certain specific requirements of the employees. As a general rule, allowances are to be incorporated in the total income unless specifically exempted. Exemption in respect of the particular allowances is allowable to the extent that is mentioned below against each of them:-

House Rent Allowance (HRA)

Provided that expense on rent is actually incurred, the exemption possible will be the least of the following:

  1. HRA received.
  2. The rent paid is less than 10% of the salary.
  3. 40% of salary (50% in case of Chennai, Kolkata, Mumbai, Delhi)

Salary here means Dearness Allowance + Basic if the terms of employment provide dearness allowance.

Leave Travel Allowance (LTA): The amount actually incurred on the travel on leave performance to any place within India by the shortest route is exempt. This is subjected to a maximum of the AC 1st Class fare or the air economy fare (if the journey is performed by any mode except air) by such route, provided that only in respect of two trips committed in a block of 4 calendar years that the exemption will be available.

Certain allowances given to the employee by the employer are exempt u/s 10(14). All these exempt allowances are in detail mentioned in Rule 2BB of Income-tax Rules and are briefly discussed below:

According to Section 10(14)(i), the following allowances are exempt, subject to actual expenses incurred:

  1. Allowance granted to meet the cost of travel on transfer or tour.
  2. Allowance granted on journey or tour connected with the transfer to meet the recurring charges incited by the employee.
  3. Allowance granted to meet the expenses incurred on a helper who is engaged for the performance of official duty.
  4. Allowance granted to meet conveyance expenses incurred in the performance of duty provided no free conveyance is provided.
  5. Allowance granted for academic research or training in research or educational institution.
  6. Allowance granted to meet expenditure on maintenance or purchase of uniform for the enforcement of official duty.
  7. Under Section 10(14)(ii), the following allowances have been prescribed as exempt:
Serial Number Allowance type Exempted amount
1. Special Compensatory Allowance: For areas with high altitude allowance or climate allowance, or hilly areas.

 

For various regions of North East, Hilly areas of Uttar Pradesh, Jammu and Kashmir and Himachal Pradesh, Rs 800 is common.

For the Siachen area of Jammu and Kashmir, Rs 7000 per month is standard.

For places at the height of 1000 meters or more, Rs 300 is standard.

2. Border Area Allowance is also known as Difficult Area Allowance or Remote Area Allowance or Disturbed Area Allowance. For various areas mentioned in Rule 2BB, multiple amounts ranging from Rs 200 per month to Rs 1300 per month are exempted.
3. Tribal area or Schedule area or Agency area allowance is available in Madhya Pradesh, Assam, Uttar Pradesh, Karnataka, West Bengal, Bihar, Orissa, Tamilnadu, Tripura. Rs 200 per month
4. Allowance is granted to the employees working in any kind of transport system to meet their expenditure during duty to run of such transport from one place to another. 70% allowance up to a maximum of Rs 10,000 per month.
5. Children Education Allowance For each child Rs 100 per month up to a maximum of two children
6. Allowance granted to meet the expenditure of hostel for employee’s child For each child Rs 300 per month up to a maximum of two children
7. Compensatory Field Area Allowance available in different regions of Arunachal Pradesh, Manipur Sikkim, Nagaland, Himachal Pradesh, Uttar Pradesh and Jammu and Kashmir. Rs 2,600 per month
8. Compensatory Modified Field Area Allowance available in various areas of Punjab, Rajasthan, Haryana, Himachal Pradesh, Uttar Pradesh and Jammu and Kashmir, West Bengal and North East. Rs 1,000 per month
9. Counter Insurgency Allowance is granted to members of the Armed Forces. Rs 3,900 per month
10. Transport Allowance granted to physically disabled employees. This is allowed to employees, who are blind or deaf and dumb or orthopedically handicapped with disability of lower extremities, to meet their expenditure for the purpose of commuting between the place of their residence and their duty Rs 3,200 per month
11. Underground Allowances are granted to employees working in underground mines. Rs 800 per month
12. Special Allowance is allowed to members of the armed forces in the nature of high-altitude allowance For altitude of 9000-15000 ft. Rs 1060 per month

For altitude above 15000 ft. Rs 1,600 per month

13. Special Allowance is allowed to the members of the armed forces in the nature of special compensatory highly active field area allowance Rs 4,200 per month
14. Special Allowance is allowed to the members of armed forces in the nature of island duty allowance. (Andaman & Nicobar& Lakshadweep Group of Islands) Rs 3,250 per month

 

GHMC Property Tax | Responsibilities, Calculations, Rates, How To Pay Online and Offline?

GHMC Property Tax | Responsibilities, Calculations, Rates, How To Pay Online and Offline?

GHMC Property Tax: After they become stable financially and mentally, every person aims to own land, build a house or any asset, and give space to their family. However, when a person chooses to buy land or property, it just does not end up with the money and signature; there are tons of other legal matters to be taken care of by them.

Some expenses have to be worn by the property owners of Hyderabad. The amount taken is used for the maintenance and other state development works like the infrastructure, roads etc. In addition, some taxes have to be filled from which Telangana House tax is something they have to worry about.

The state to Hyderabad landowners pays their taxes to GHMC, details of which will be discussed below. One can even do the GHMC property tax payment online. This article will do a thorough discussion about the GHMC property tax search and GHMC property tax payment and cover all the required areas.

GHMC Property Tax Online

About GHMC Property tax

GHMC is the Greater Hyderabad municipal corporation that is responsible for the administration infrastructure properties of the city. It was inaction from April 2007 by bringing together 100 wards, 12 municipalities of neighbouring districts of the municipal corporation of Hyderabad.

GHMC is one of the biggest municipal corporations of India that covers almost 8 million people spread in a particular area. This civil body is responsible for collecting house taxes in property taxes from the landowners of Hyderabad.

The main motive of collecting these taxes is to give a potion effect to the state government, and the left is used to improve the living conditions, facilities and maintenance of the area.

Any property owned in Hyderabad, whether news lives there or is on rent, you have to tax the state government annually through g h m c property tax. The amount of tax can vary based on the type of land or property, be it for personal use or commercial purpose.

Responsibilities under GHMC tax

The tax taken from the property owners is used by the state government as revenue and is also used for maintenance purposes in itself. However, a few responsibilities come under the municipal corporation of Hyderabad once the taxes are fulfilled by the owners, which is given below.

  • Repairing potholes and drainage
  • Disposal of garbage and street cleanliness
  • Maintenance of streets, roads, footpaths or any other means of transport.
  • Maintenance of open spaces like parks
  • Development of infrastructure
  • Street lighting
  • We are registering births and deaths in the area.

Calculation of GHMC property tax

The GHMC takes taxes on annual rental system residential and commercial lands. Depending on the value of the owned property tax rate is applied. Therefore, the annual rental system for the calculation of property taxes is different for residential and commercial buildings.

The tax is applicable even if the building is not on any rent; the commission of the municipal body imposes tax based on the potential to generate the rent of that particular property. The tax is generally given based on a few criteria.

  1. The plinth area is the area of the land built under construction, including apartments, parking lot, balcony, etc.
  2. The annual value is divided into parts that are the land value and the building value; thus, it is responsible for the tax payment of the building and the land.
  3. For commercial properties, the monthly rent per square foot has to be taken from the GHMC to pay the exact rental tax.

To talk about taking out the tax percentage, you have to give it to the GHMC, and the procedure is below.

  • For residential property- PA×MRV ×(0.17-0.30) in square feet, this depends on the monthly rental value that is 10% depreciation with 8% library cess.
  • For commercial property- 3.5× PA ×MRV in square feet

Rates of GHMC property tax

The tax rates are different based on the property. The tax rate can be exclusively different.

  1. Rs 50- no tax rate
  2. Rs 51-100- 17% tax rate
  3. Rs 101-200- 19% tax rate
  4. Rs 201- 300- 22% tax rate
  5. More than 300- 30 % tax rate

The rates vary based on residential property and commercial properties

  • The minimum rent per square foot for commercial properties like hospitals are rupees 8 and rupees 10.
  • The maximum rent monthly per square foot for commercial areas like ATM towers is rs 50 and rs 70.

To give you an idea of the tax that has to be, given by you annually, here is an example.

If we take home as a 600 square feet place, then if we take the value per square feet as rupees 5, the monthly value becomes Rs.3,000.

Now, as we will be paying the tax on an annual value of the property, thus the monthly amount of 3,000 multiplied by 12 gives 36,000. So, the annual tax that has to be paid to the GHMC tax collector is Rs 36,000.

Now, if we talk about the age rebate, the charges on the building are-

  • 10% tax for 0 to 25 years of building
  • 20% as for 26 to 40 years of building
  • 30% for more than 40 years of building

For example, if we assume that a 15-year-old building is at 10% depreciation, the amount becomes Rs. 15,000+ Rs. 13,500, which makes the property owner pay 28,000 annually.

Ways to pay GHMC tax offline

The tax can be paid offline by the below-mentioned methods. to pay the tax offline, the owner has to carry a few documents so that the owner can initiate the payment they are-

  1. Sale deed of the owned property
  2. Occupancy certificate that was received to you from the builder before moving in the house.
  3. Copy of the building that the architect draws
  4. A draft or cheque in the name of the GHMC commissioner.

There are some allotted places where you can pay the GHMC Hyderabad property tax, they are-

  1. GHMC bill collectors office
  2. 72 MeeSeva centres in the GHMC Boundary
  3. Citizen service centre in 19 circles
  4. Any branch of State Bank of Hyderabad.

Ways to pay GHMC tax online

The easiest way to pay the tax nowadays is online. Paying tax online is hassle-free and requires less time and effort as the technology improves and makes it more convenient. Here is a process is given below by which the property owner can pay the tax online.

  1. Open the computer, type GHMC tax payment and log in to the website.
  2. Go to the online payment section that you will find under the property tax option.
  3. To get hold of the right amount and the property tax dues, click on ‘know property tax dues’ and feel the PTIN.
  4. A page will appear with detailed interests, areas or adjustments with the property tax amount.
  5. You can now select the mode of online transaction you want to show a debit card, credit card or online wallets like net banking.
  6. You can generate a receipt of your payment and take out a copy of that using your PTIN. But if you have earlier paid offline, that receipt cannot be generated through an online process.

How to make PTIN and pay tax

Generating the PTIN, the property tax identification number is the most important number that every owner must possess. The pin is different based on the type of property the people owns; GHMC gives the specific digit identification number for properties, a ten-digit identification number for new properties and a 14 digit PTIN for old properties.

  • To generate a pin in the offline mode, the property owner has to give documents like the sale deed, property papers and occupancy certificate to the commissioner. After the physical verification of the property, the legal documents and the owner, a PTIN of the house number will be issued by the authority.
  • To generate a pin online by going to the ‘Online self-assessment scheme’ by GHMC. Then, go to the online services of the page and mention all the details like locality, occupancy, building permission and others as asked. After all the documents are given, the officials will verify the property and issue a PTIN.

If for any reason, the owner forgets the PTIN, it can be reverted by logging into the official website, going to the enquiry section and searching for the PTIN option. once you enter all the details of the property-related queries, you can get your PTIN

Exceptions of paying the GHMC property tax

The GHMC property tax has to be paid by active property or not; few areas can be granted a special concession or exemptions.

  1. Educational institutions that are built and registered in the state government records do not have to pay tax.
  2. Property Owner who has an annual income of fewer than five lacs.
  3. Worship places under Government registration are exempted from the tax.
  4. Properties owned by military personnel or former military personnel do not have to pay tax.
  5. Any property owned by a charitable organisation is not required to pay tax.
  6. Owners of a vacant property with no settlement get a 50% concession.
  7. Owners residing at a place with annual rent less than rupees 600 are exempted from the tax payment.

There are a few requirements and steps that must be kept in mind by the property owners so that they do not miss the tax payments.

Firstly, the last date for the half-yearly GHMC property tax payment is deducted as 31st July and 15th October every year, failing which can result in a penalty.

Secondly, if you fail to complete the payment that the taxpayer has to give a penalty of 2% per month on the amount and in case of delay beyond the GHMC property tax due date.

To conclude, we can say that the payment of property taxes is important both for the upliftment and your property papers.

Ahmedabad Property Tax | Details, Values, How To Pay Online and Offline?, Last Date

Ahmedabad Property Tax | Details, Values, How To Pay Online and Offline?, Last Date

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?

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.

  1. Water Tank along with Water Pump Room
  2. Boarding or Lodging or Hostels that are run by Public Charitable Trust or by any Religious Institutions
  3. Ashrams
  4. Library
  5. 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.

  1. The residency rating for the owner is 1, and the non-residency rating is also 1.
  2. 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:

  1. Full Cash Value
  2. Taxable Value
  3. 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.

Section 148 of Income Tax Act | Income Tax Act Section 148, Assessment or Reassessment Notice

Section 148 of Income Tax Act | Income Tax Act Section 148, Assessment or Reassessment Notice

Section 148 of Income Tax Act: Section 148 of the Income Tax Act deals with issuing a notice when if any income has escaped assessment or taxation. This section also mentions that an Assessing Officer will reach out to the assessee who is being questioned by issuing him or her a notice wherein he or she will be needed to provide with the following documents –

  • His or her income returns;
  • The income returns of a person other than the assessee who is being questioned and is deemed to be assessable as per the provisions of the Income Tax Act during the year which was before the assessment year of relevance.

In this article, we will discuss in detail Section 148 of the Income Tax Act and its workings.

The Capacity of the Assessing Officer Under Section 148 of the Income Tax Act

As per Section 148 of the Income Tax Act, an Assessing Officer has the power to either assess or reassess any taxable income that may have escaped taxation and has not been assessed as per the guidelines laid down in the Income Tax Act. Suppose the Assessing Officer has any reason to suspect that the taxable income of an assessee may have avoided assessment. In that case, the Assessing Officer can exercise the right to carry out their powers of income Types of assessment or re-assessment as per the provisions laid out under Section 147 through to Section 153.

The Issuance of Notice by An Assessing Officer to An Assessee Under Section 148 of the Income Tax Act

  1. Before issuing a notice to an assessee based on the provisions under Section 148, an Assessing Officer should possess concrete evidence that the assessee who is being questioned has evaded assessment of income for the relevant assessment year. To put it another way, the Assessing Officer cannot issue a notice to an assessee based on trivial suspicion.
  2. Any solid link must be presently linking the material information provided to the Assessing Officer with the evidence to prove that the assessee has escaped income assessment for an assessment year.
  3. The information or data provided to the Assessing Officer must be of maximal relevance to the case and must not possess any irrelevant facts or figures.
  4. Before issuing any notice to an assessee, the Assessing Officer is compulsorily required to record and provide reasons in written form mentioning why they believe that the assessee is escaping assessment of income as per Section 148.
  5. Suppose the Assessing Officer states that the assessee has escaped assessing a large amount of income or that the assessee is to be investigated in further detail, with no material or information to back up these claims or allegations. In that case, it will not be considered a definite cause to issue a notice to the assessee under Section 148. Such causes will be termed to be ambiguous and vague.
  6. Until and unless new and relevant information or material is brought to the Assessing Officer, they cannot issue a notice to an assessee based on the differences in perspectives or opinions. The Assessing Officer will have no reasons to believe or suspect an assessee if the assessee who is being questioned has provided disclosure with regards to all the relevant things concerning his or her taxable income, as well as disclosed and provided documents, factual information, and data, which has led to the completion of his or her assessment or re-assessment.
  7. The Assessing Officer cannot issue a notice to an assessee just by reaching a new conclusion based on the documents and factual information that the assessee has already provided during the assessment. Issuance of notice can only occur if further information or material has been presented to the Assessing Officer.
  8. However, if any of the information or facts have either been concealed or not been disclosed by the assessee who is being questioned, and such details have come to the notice of the Assessing Officer at a later time, in that case, the Assessing Officer will have the complete authority to issue a notice to the offending assessee under Section 147 or Section 148.

Individuals Authorised to Issue Notice Under Section 148 of the Income Tax Act

As per the provisions under Section 148, only the following individuals are authorised to issue notices to an assessee who has escaped assessment or re-assessment of the taxable income under the following conditions –

  • Any Assessing Officer who is presently ranked below the position of an Assistant Commissioner or Deputy Commissioner is allowed to issue a notice to an assessee under Section 148. This is in line with Section 151(1) provisions regarding any assessment carried out for the assessment year of relevance under sub-section (3) of either Section 143 or Section 147. This issue can only be evaded by the Joint Commissioner, provided they are content that the reasons given by the Assessing Officer are valid enough for the issuance of any notice to an assessee.
  • No issuance of notice to an assessee can occur following the expiration of four years from the conclusion of the assessment year, which was being questioned. This issue can once again only be evaded by the Chief Commissioner of Commissioner, provided her or she is content that the reasons given by the Assessing Officer are valid and strong enough for the issuance of any notice to an assessee.
  • In a situation where the cases that are not covered under Section 151, sub-section (1), and Assessing Officer can issue a notice to an assessee as per Section 148 if:
    • His or her position or rank is below than that of a Joint Commissioner;
    • The four-year period which follows the conclusion of the assessment year of relevance has expired.

The Joint Commissioner can only evade this issue, provided he or she is content that the reasons given by the Assessing Officer are valid enough for the issuance of any notice to an assessee.

Time Frame Given for The Issuance of Notice to An Assessee Under Section 148 of the Income Tax Act

As per the provisions of Section 149, notices issued under Section 148 can occur over the following time frames –

  1. The Assessing Officer can issue the notice prior to the end or expiration of the four years from the conclusion of the assessment year of relevance, provided that the taxable income that evaded the assessment is not more than Rs 1 lakh.
  2. Suppose the taxable income that has evaded assessment is more than Rs 1 lakh. In such a scenario, the Assessing Officer can issue a notice within a time frame of six years from the conclusion of the assessment year of relevance. The issuance of this notice will take place in place of the provisions outlined under Section 151.
  3. However, the provisions mentioned under Section 147 state that if an assessment or reassessment has taken place and concluded under Section 143(3), then an Assessing Officer will not be authorised to issue any notices to an assessee under Section 147, which follows the expiration of the period of four years from the conclusion of the assessment year of relevance. A notice could be issued by the Assessing Officer only if any taxable income was proven to have evaded assessment for the relevant year for the following causes –
    1. The assessee has failed to provide his or her returns as per Section 139;
    2. The assessee has failed to provide his or her returns after the issuance of a notice under Section 142 and Section 148(1);
    3. The assessee has failed to provide complete disclosure with regards to any information, factual data, or particulars required to complete the assessment for that relevant year.

Duties and Rights of The Assessee After Receiving Notice Under Section 148 of the Income Tax Act

If an Assessing Officer issues an assessee a notice for the evasion of taxable income assessment, then the assessee is duty-bound to carry out the following measures –

  • The assessee will be required to file his or her tax returns for the evaded income for the assessment year of relevance.
  • After the filing of returns, the assessee can request a copy, which mentions the reasons for the Assessing Officer to issue a notice to him or her under Section 148 of the Income Tax Act.
  • If the assessee finds the reasons contained in the copy to be groundless or inadequate, in that case, the assessee has the right to file an objection challenging the issuance of such notice by the Assessing Officer.
  • The assessee must also provide valid reasons for filing the objection and challenging the legality of the issuance of the notice under Section 148 by the Assessing Officer.
  • The assessee also has the right to request the Assessing Officer to provide different reasons if he or she dismisses the assessee’s claims.
  • The assessee can also refer to the relevant High Court and file a writ petition. In this petition, the legality, legitimacy, and lawfulness of the notice issued under Section 148 can be challenged even before the conclusion or completion of the assessment or re-assessment that is taking place.
  • The assessee can then also file a writ petition with the relevant High Court, wherein the legality and lawfulness of the notice issued under Section 148 can be challenged even after the assessment has been completed and the case is under appeal.
  • The assessee will be required to provide evidence that he or she has –
    • Requested a copy of the reasons mentioned by the Assessing Officer for the notice issued by him or her under Section 148;
    • Filed an objection to the reasons stated by the Assessing Officer under section 148;
    • Requested the Assessing Officer to provide reasons for the rejection of the assessee’s objections;
    • Challenged the legitimacy of the issuance of the notice.

Provision of Section 148 if The Assessee Does Not Furnish Income Tax Return

Suppose the assessee does not furnish the Income Tax return within the timeframe underlined in the notice issued under Section 148 by the presiding Assessing Officer. In that case, the assessee shall be made to pay interest under Section 243(3) for late filing of Income Tax return or for not filing of Income Tax return, if the income has already been determined under Section 143(1) or if the income if the assessment has already been done under Section 144 or Section 147.

On the other hand, if the assessee does not furnish any return concerning any assessment year and no assessment of such year has been done under Section 144, then the interest of late filing of return in response to the notice under Section 148 will be levied on the assessee under Section 234(1) instead of Section 234(3) of the Income Tax Act.

FAQ’s on Section 148 of Income Tax Act

Question 1.
What are the different notices that are issued under the Income Tax Act?

Answer:
The various notices or assessments issued under the Income Tax Act are given below – 

  • Section 131(1A): Income is concealed or is expected to be concealed.
  • Section 139(9): Defective Income Tax Return.
  • Section 142(1): Preliminary Enquiry before an assessment.
  • Section 143(1): Letter of Intimation.
  • Section 143(2): Follow up on the notice under section 142(1).
  • Section 143(3): Scrutiny Assessment.
  • Section 144: Best judgment assessment.
  • Section 148 and Section 147: Income escaped assessment.
  • Section 156: Notice of Demand.
  • Section 245: Set off of refunds against tax remaining payable.

Question 2.
Can we revise the return filed under section 148 of the Income Tax Act?

Answer:
Return filed in response to notice under section 148 can also be revised. It is provided under section 148 that all the provisions of section 139 shall apply for such a return. It is to be noted that notice under section 148 is issued to assess the escaped income.

Question 3.
How many years can income tax go back?

Answer:
As per Section 149 of the Income-tax Act, 1961, the income tax department has the power to issue a notice to taxpayers for seven years from the end of the financial year. So, this would mean that if you have filed ITR for FY 2019-20, you must keep the related documents with you until the end of FY 2023-24.

Question 4.
What is income escaping assessment in income tax?

Answer:
Income Escaping Assessment under section 147 is the assessment done by the Assessing Officer if there is a reason for him to believe that income chargeable to tax has escaped assessment for any assessment year. It gives power to him to reassess or recompute income, turnover, etc.

Question 5.
What is the assessee required to do after receiving notice under Section 148?

Answer:
The assessee is required to produce the details of his or her income tax returns within a 30 days duration that the Assessing Officer has specified in the notice issued. In case the assessee needs to

provide income tax returns of any other assessable person, then he or she has to provide them in the format specifically as mentioned under the provisions of the Income Tax Act with any additional information deemed to be provided with the detailed information. Before issuing the notice, the Assessing Officer will not give the cause of the notice issued to the assessee in question.

 

‘A’ Khata Property Tax | Meaning, Components, Significance and Documents

‘A’ Khata Property Tax | Meaning, Components, Significance and Documents

‘A’ Khata Property Tax : In India, if your question is ‘What is Khata?’ then the answer will be a Khata is a document that gives information regarding the tax levied on a certain piece of land. The document serves as a record of the amount of money that has been paid to the government. It also contains specifics on the property, such as its location and size, among other things, one must know how to sell B Khata property.

In India, owning a home is possibly the most visible manifestation of success, with the quality of one’s life dictated by the type of home one has. Property acquisition requires a significant amount of effort, and it is normal for property owners to believe that they would be able to rest and enjoy their new home once the process is over. While in certain cases, this is true, but it is not true in other cases because owning a property requires a commitment, both to oneself and to the government. Maintaining a khata property for sale in Bangalore and paying property taxes are just as vital as purchasing a property, and failing to do so could also result in a property owner being sued for damages.

‘A’ Khata Property Tax

What exactly is Khata?

A Khata, in its most basic definition, means account, and it is a phrase that is commonly used in real estate transactions, particularly in Bangalore, Karnataka.

The Khata is a document that contains information on a specific property in terms of taxation and other fees. It indicates that a property owner has opened a property tax account with the municipal corporation in question in order to pay the applicable property taxes.

If a property’s property tax has been paid to the government, a tax assessment notice will be issued. It will also contain information about the property’s location, size, ownership, and taxes paid.

A-Khata is required in order to compute the amount of tax that should be paid on a specific property. It also serves as an identifying document that identifies the person who is responsible for paying property tax.

Components of Khata

Every Khata is made up of two parts, each of which is described in greater detail below.

Khata Certificate: This is required in order to register or transfer ownership of a property from one person to another. This certificate can be acquired by the owner by submitting a letter along with the most recent tax payment receipts. It would cost Rs 25 per property to receive this certificate.

Khata Extract: This goes into greater depth about the property, providing information such as the size of the property, its current usage (residential or commercial), and its value. The cost of this extract is Rs 100, and it is valid for five years.

What exactly is ‘A’ Khata?

An ‘A’-Khata certificate is a legal document that documents tax payments, and a property with an A Khata certificate is entitled to facilities provided by the BBMP (in the context of Bangalore). An A Khata certificate is a certificate that is granted for a property located within the boundaries of the BBMP (Bruhat Bengaluru Mahanagara Palike).

Any property that has been issued with an A Khata certificate complies with the state’s building codes and regulations, raising its worthwhile also offering clear information about it.

What is the Basic Difference between a Khata and a Title Deed?

Many individuals are unfamiliar with the world of property paperwork, and it is conceivable for them to believe that a Khata and a title deed are the same things. This is not the case, as the title deed differs from a Khata in several respects.

Khata is a document that provides an assessment of a property in order to pay taxes and keep records. It is used to pay taxes and keep records. It does not imply ownership of a specific piece of real estate.

A Title Deed is considered a legal document that serves as proof of ownership and as a written contract with a buyer and a seller during the course of a real estate transaction (sale or transfer of property).

This formally establishes legal ownership of the real estate in question. A Khata is a legal document that acknowledges the transfer of ownership of certain property and identifies the new tax assessee in such instances.

This happens only when a person has a title deed that he or she can receive a property Khata, and it is not possible to obtain a title deed just on the basis of a property Khata alone.

What Is The Best Way To Verify Khata Online?

  • Step 1: Navigate to the e-Swathu website’s official home page.
  • Step 2: On the Google translator pop-up box, the first thing you need to do is choose your favourite language from a list of options that includes Kannada and English.
  • Step 3: On the main page, select the “Verify” tab from the menu bar. “Verify Documents” can be selected from the drop-down menu.
  • Step 4: To go to the next stage, enter your property document number or Sakala number and then click “View Document,” which will take you to a different website.

If the document number is a real one, the relevant property document will be downloaded to your computer or your mobile device for your convenience.

If a person does not know the document number, you may find yourself completely befuddled at this point. In that scenario, you can proceed with the following steps after step 2 instead of stopping at that point.

  • Step 5: On the home page, click on the “Search Your Property” link to begin your search.
  • Step 6: You will now be led to a new page, where you will be required to select from the options “Form-9,” “Form-11B,” and “Survey No.” When doing online Khata verification for an A Khata property, select “Form-9” from the drop-down menu.
  • Step 7: Next, choose the district, block, village, and Gram Panchayat in which the property in question is located to continue. If you know the property ID and the name of the owner, you can additionally include that information.
  • Step 8: A list of properties will be displayed, with various details such as the owner’s name, the date the property was printed, the property code, the property ID, the village name, and the asset number.

Combining any of the information offered with the information known about your targeted property will allow you to identify the correct document number and then click on it.

  • Step 9: Once you have clicked on the document number, you will be taken to the same page as in step 4, and your A Khata document will begin downloading in PDF format to your PC or smartphone if it has been registered with the BBMP.
  • Step 10: When you double-click on the PDF file you just downloaded to open it, the following dialogue box will pop up.

There is no extended reason to be concerned. Simply copy and paste the document number from the previous screen into the box provided. The password is your Sakala number or property document number, which is unique to you. By clicking on the confirm button, submit the form.

After you have completed the full procedure, you will be able to examine the paperwork that verifies that the property is a legitimate one that has been registered with the BBMP. You can see what an A-Khata based like by looking at the image below.

The following information will be included in the document:

  • Ownership
  • Location
  • Situation in which a building is occupied
  • Size/measurement
  • Purpose of Utilisation
  • The area that has been constructed
  • The value of a property on an annual basis
  • A Khata property tax payment is described in detail.

In this case, you must always check to see if the words “Form-9” are written on the top of the paper, which shows that it is an A Khata. Check for the digital signature of the issuing authority, which can be found at the bottom of this khata, as well.

Now that you are familiar with the procedure for conducting an online Khata check, you should be aware of how convenient the A Khata property tax can make things for you in the future. Please continue reading!

The Significance of the A-Khata Property Tax?

Paying your property tax on time is vitally important since it makes the following processes far more efficient:

  • Compensates for the lack of municipal funds: You should be aware that your property tax is similar to a fee that you pay to assist in the maintenance of local civic amenities.

It is directed to the municipal finances, which serve as a financial reservoir for the payment of wages to municipal employees who are responsible for the upkeep of roads, street lights, sewage systems, and other infrastructure.

  • Maintains the value of the property: Paying your property taxes assists you in keeping track of the true value of your structure, which can be beneficial when reselling your home or business. In addition, in many areas, assessors come to taxpayers’ homes to verify the value of their property and ensure that they are paying the correct amount of taxes.
  • Tax advantages are provided by: Tax deductions under Section 80C of the Income Tax Act may be available if you make regular property tax payments while still paying taxes under the previous taxation regime.

You can claim expenses such as those associated with property transfer, registration, and stamp duty, among other things, if you qualify for one of these exemptions.

  • Taxpayers can benefit from the following additional discounts: To encourage people to pay their property taxes on time, several state governments offer a 2 per cent – 10% discount on their property taxes to those who do so before the due date of the tax.

Aids in avoiding costly fines and penalties: If a person fails to pay your property tax by the due date, then they will be subject to a penalty of 2 per cent per month on the unpaid amount, according to Section 105(8) of the Karnataka Municipalities Act, 1964. As a result, prioritising regular property tax payments can keep you from incurring these high expenses.

An A Khata certificate will be updated with the details of your A Khata property once the tax payment for your A Khata property has been completed. This document is just as crucial as the taxation procedure in terms of importance. Here’s how it’s done:

An A Khata is required in order to be able to take advantage of essential civic utilities such as electricity and water delivery. It serves as your portal for submitting an application for such services.

Whenever a loan is sanctioned against a property, financial organisations check to see if the A Khata is in good standing. As a result, if one intends to invest in such financial products, it is always advisable to ensure that their property is in possession of a valid A Khata document.

This legal document will be required in order to obtain a building permit in order to commence development on your property.

Obtaining a commercial licence will be difficult if your building is a commercial establishment and you do not have an active Khata.

Last but not least, if a person is considering selling your home, do not even consider doing so until you have obtained this document. Any prospective buyer will research a property’s tax payment history and appraise its actual value before making a decision to purchase it, and the relevance of A Khata cannot be overstated in this context.

As a property owner, it is everyone’s responsibility to pay all outstanding debts and obtain an A Khata, which contains all of the necessary information.

Knowing why an A Khata is so necessary, you must also be aware of the many paperwork required to register your property before you can start with the process of applying for one.

What Documents Do You Need To Bring With You To Register For ‘A’-Khata?

The following is a list of the paperwork that must be submitted in order to register A Khata.

  • Receipt for the most recent tax payment
  • Certificate of Occupancy Approval Plan for the Building
  • A certificate of possession is required (for apartments)
  • Documents relating to the allocation of shares from the relevant corporation
  • Certificate of Encumberment Receipt for Betterment Charges
  • Deed of sale

Once you have accumulated all of the essential documentation for A Khata registration, you can begin the application procedure as soon as possible.

Important to realise is that an A Khata is not evidence of property ownership; it is only used to identify the person who is responsible for tax payments. Despite the fact that it is a crucial instrument that aids in the transfer of property, it does not confer ownership on its bearer on its own.

A transfer deed is a legal document that accomplishes this goal. As a good citizen and for your own convenience, you should make payment of your A Khata property tax and the updating of this document a high priority.

Frequently Asked Questions

Question 1.
What happens if a person fails to pay my A Khata property tax obligations?

Answer:
Putting off the payment of your A Khata property tax obligations, even after receiving reminders from the municipal corporations, might have major ramifications. Apart from the legal ramifications, it may also result in the confiscation of the property in question as well as your moveable goods, such as furniture, under Section 143 of the Karnataka Municipalities Act, 1964. Individuals who are determined to have willfully defaulted on their payments may potentially face imprisonment.

Question 2.
How long does it take to receive an A Khata certificate?

Answer:
Once your application has been approved, it may take up to 5 weeks for your A Khata certificate to be processed and delivered. After submitting your application, you can check your Khata status online to see if your request has been processed.

Question 3.
Is it necessary for me to pay A Khata property tax on the vacant property?

Answer:
Yes, even if you own a piece of vacant land, you are required to pay the A Khata property tax. If you own a vacant building or business space that is not producing its typical income, you may be completely able to claim a tax deduction for the loss of property income on your tax return.

Defective Return Notice Under Section 139 (9) | Steps and Reasons

Defective Return Notice Under Section 139 (9) | Steps and Reasons

Defective Return Notice Under Section 139 (9): An income tax is a form of direct tax levied by the Government on its citizens’ income. The income tax return is a statement that assesses the financial position of a person in a financial year. It is a statement showing the position of a person with all his sources of revenue and deductions, and at the end, it shows the amount of tax payable or tax refund.

The income tax return has to be filed at the end of every financial year. When a person files his/her tax return, it is checked, assessed, and processed bit by bit by the Income-tax department. The income-tax department matches all the information provided by you, such as your income sources, tax deducted with the information available with them. If all the information is correct, the department sends a final intimation under section 143(1), which says that you have filed your income tax return.

At times, people filling income tax return receive a notice from the Income-tax department that says, Defective return u/s 139(9). Why does this happen? What is a defective return notice?

A defective return notice under section 139(9) is issued to a person when the tax information provided by him is either incorrect or is missing.

Here in this article, you will get all the information regarding defective return notice and steps to respond to them.

Reasons That Render An Income Tax Return Defective

There are multiple reasons that can render an income tax return defective. Here we have mentioned those reasons:

  • The first and the most common error is when a person does not submit his/her Permanent Account Number (PAN), employer details, income details or tax paid.
  • Another error that can prove an income tax return as defective is when the tax deducted has been claimed as a refund. But there is no income information related to such deduction is available.
  • It is essential for the taxpayers that they furnish updated record of self-assessment tax paid. The details of tax challans numbers and other relevant information shall be filled in correctly. If the tax and interest have not been paid or information regarding it is not available, then it can render your ITR defective.
  • Not paying tax on bank deposits such as FDs and other such deposits can prove your income tax return as defective. Every bank deducts a 10% tax at the source on FDs and submits the documents to the income tax department. But persons coming under 20-30% tax slabs have to pay the remaining tax amount, which they don’t. This error can result in a defective income tax return.
  • An income tax return statement can be treated as defective when a person has not attached a balance sheet and profit and loss statement to the income tax return statement.
  • When a person’s total presumptive income is less than 8% of gross turnover or gross receipt, He/she has to file ITR-4. But most of the time, taxpayers file ITR-4S, which makes the income tax return defective. It is treated as error code 8 under the 139(9) section of the income tax act 1961.
  • According to the provisions of section 139(9), the error code 14 states that an income tax return is treated as a defective return if there is any negative amount under the gross profit or net profit section.
  • Lastly, an income tax return can be treated as a defective return if the tax determined is payable for ITR but is not paid. It is treated as an income tax error code 38 under section 139(9) of the Income Tax Act.

Defective Return Notice

What To Do After You Receive Defective Return Notice

If a person receives a defective return notice under section 139(9) from the income tax department, he/she need to respond to it as soon as possible. In response to the notice, the person can file a revised statement within 15 days of receiving the notice. While filing the revised statement, it is essential to mention the date of receipt of the notice.

If a person cannot file the revised statement within the stipulated time, he/she can seek an extension from the Assessing Officer. But after the extension period, if a person fails to file the revised return, the Assessing Officer will treat the income-tax return as invalid.

Steps To Follow To Respond To The Defective Return Notice

Once you have filed the return and the income tax department has processed it, and you receive a defective return notice. You have to respond to the defective notice by filing a revised statement with the Assessing Officer. Here we have provided the detailed step-by-step process which will help you to respond to the defective notice under section 139(9).

Step 1: Go to www.incometaxindiaefiling.gov.in. After opening the website, login into your account with your ID, password, and Date of Birth.

Step 2: If according to you, the notice sent by the Income-tax Department is correct, then you have to revise the ITR statement provided by you. For the revision of the ITR statement, click on the “e-file” tab and select “e-file in response to notice u/s 139(9)” from the drop-down menu.

Step 3: Once the page loads, you will find the notice under section 139(9) that has been issued to you. A defective return notice can either be issued by Assessing Officer or by the Central Processing Center. The process to respond in both cases are different.

Step 4: If you have received the defective return notice from the Assessing Officer, Click on the submit button.

Step 5: After the successful validation, upload the corrected XML file you have prepared and click on submit. Once the submission is made, a page with successful notice will be displayed on the screen.

Step 6: If the defective notice has been raised by the Central Processing Center and you agree with the defect, select ‘yes’ from under the “Do you agree with the defect?” column. Now, you can fill your Income-tax return by correcting the defect. Once you have corrected the defect, generate the XML file and upload it and then click submit. After successful submission, a success message will be displayed on the screen.

Step 7: In case if you do not agree with the defect, then click on ‘no’ from the “Do you agree with the defect?” column. After clicking on ‘no’, give the remarks under the “Assessee Remarks” column and click submit.

Withdrawal of Defective Response

In case if you want to withdraw any response submitted by you for defective return, it can also be done but within 3 days of filing such response. For withdrawal of the response, all you need to do is, click on the “withdrawal link” under the “Response Column”.

Once you click on it, the details of the response submitted by you will be displayed on the screen. Now, you need to agree with the withdrawal by checking the checkbox and clicking on the “Confirm Withdrawal” button. Once the response has been withdrawn successfully, a message will be displayed on the screen.

Conclusion

Income tax is a form of revenue for the Government of India, and every person has to file an Income-tax return. The tax so collected from the taxpayers is put into public use. Providing wrong information or manipulating income-related information can render your return statement defective, which can also lead to the cancellation of the return filed by you. It is essential to provide the correct information for tax calculation. In case you receive notice of a defective return, you should always respond to it.

Section 194J TDS on Fees for Professional or Technical Services | Check Limit Here

Section 194J TDS on Fees for Professional or Technical Services | Check Limit Here

Section 194J TDS Professional Technical Fees: The deduction of tax at source, or TDS, has proven to be quite effective in collecting taxes in the country by focusing on the source of income. It also makes paying tax easier for taxpayers when it comes time to file their income tax returns. This is due to the fact that they receive credit for taxes deducted at the source. In this article, let’s learn everything about Section 194J of the Income Tax Act 2020-21.

What is Section 194J?

When certain payments are made to a specific resident, a person must deduct their Tax Deducted at Source (TDS) solely at the rate of 10%, according to the norms and regulations of Section 194J of the Income Tax Act, 1961.

Types of Payments Covered under Section 194J

The following are the types of payments to residents mentioned under this section:

Professional Cases

Professional fees or fees for technical services are one of the most important and common types of payments that a corporate entity makes. Fees paid to a lawyer, doctor, engineer, architect, chartered accountant, interior decorators, advertisements, and others are examples of professional fees.

  • It refers to the services provided by someone who works in the medical, architectural, legal, medical, or engineering fields. Accountancy, interior design, advertising, technical consulting, and any other profession recognised by the Board under Section 44AA are examples of additional services.
  • Film artists, business secretaries, and approved representatives are among the other services permitted under Section 44AA.
  • It also includes athletes, event managers, commentators, anchors, umpires and referees, coaches and trainers, physiotherapists, team physicians, and sports columnists.

Section 194J TDS on Fee for Technical Services

It refers to the consulting, technical, or managerial services provided by an individual. Assemblies, mining, and building are not considered technical services because the income earned falls under the recipient’s head salary.

Non-Compete Fees

For the purposes of Section 194J, non-compete fees refer to the amount paid in cash or in-kind in exchange for an agreement prohibiting the person from sharing any patent, licence, franchise, trademark, know-how, commercial or business rights, technique, or information that could be used elsewhere for manufacturing, processing, or any other provisional service.

Royalty

For the purposes of this section, royalty refers to payment in exchange for:

  • Transfer of ownership of a patent, an innovation, a secret formula, a model, a design, or a trademark.
  • Making use of an invention, a model, a patent, and so on.
  • Sharing any information pertaining to the usage of an invention, patent, formula, or another such item.
  • Equipment is used or has the right to be used for industrial, scientific, or commercial reasons.
  • Transfer of rights to literary works, scientific results, films, or video recordings for radio broadcasting, with no regard for their sale, display, or distribution.

Specific Cases

TDS deduction is also available under Section 194J in the following instances, as determined by the department’s case laws and circulars:

  • In hospitals, medical services are available.
  • Film artists charge advertising companies professional fees.
  • Amount paid to staff agencies and HR consultants.
  • The payments are made by organizations to share registrants.

Rate of TDS under Section 194J

The rate of TDS under Section 194J is tabulated below:

Payment Type Threshold limit Rate of tax
Fees for professional services Rs. 30,000 10%
Fees for technical services and payment to call centres Rs. 30,000 2%
Remuneration or fees to Director (other than 192) NIL 10%
Royalty Rs. 30,000 10%
Non-compete fees Rs. 30,000 10%

Threshold Limit for Deducting Tax Under Section 194J

If the payment is more than Rs. 30,000 during the year, the tax must be deducted. However, there is no limit for payments made to the director. No matter how small the amount, the tax must be deducted.

Who is Liable to Deduct Tax Under Section 194J?

With the following exceptions, everyone who makes a payment in the type of fees for professional or technical services is required to deduct tax at source:

  • In the event of a sole proprietor or a HUF, when the preceding financial year’s turnover was less than Rs. 1 crore.
  • In the event of an individual or a HUF operating on a business: If the preceding financial year’s turnover was less than Rs. 50 lakh.
  • To put it another way, all entities (excluding people and HUF who were not subject to a tax audit the previous year) must deduct tax.

Rate of Deduction of Tax Under Section 194J

  • TDS will be deducted at a rate of 10% on any payment made under this section.
  • The payment of fees for technical services will be subject to TDS at a rate of 2% from April 1, 2020.
  • With effect from April 1, 2017, the tax on payments made to call centre operators will be deducted at a reduced rate of 2%.
  • In the event that the payee fails to provide his PAN, a 20% deduction will be made.

Time of Deduction Under Section 194J

The tax should be deducted if making the actual payment of the expense or making such an entry in the account whichever comes first.

Time Limit for Payment of Tax Under Section 194J

The time limit for submitting TDS under the section must be followed as follows:

  • The deposit must be made on the same day as the TDS deduction under Section 194J is made by the government or on behalf of the government.
  • TDS can also be deposited within a week after the end of the month in which the tax deduction was made.
  • If the payment is made on the last day of the fiscal year, the TDS deposit must be made within two months of the end of the fiscal year in which the payment was made.
  • If the assessing officer approves, some unusual instances may be allowed to deduct TDS on a quarterly basis.
Non–Government deductor Government deductor
Payment made before 1st March 7th day from the end of the month 7th day from the end of the month
Payment made in the month of March April 30th Tax is paid on the date of payment to the payee, but the challan must be deposited by the 7th day following the month’s end.

Consequences of Non-Deduction or Late Deduction under Section 194J

One will have to face the consequences for not deducting the tax or deducting the tax late:
Disallowance of a portion of the expenditure: In the year in which the expenditure is claimed (added to the profit and loss account), 30% of the expenditure is disallowed; however, the 30% disallowed is re-allowed in the year in which the TDS is paid to the government.Interest charges till the date of payment: If the tax is not paid on time, interest must be paid to the government together with the TDS. The following formula is used to calculate the interest rate:

  • Where no tax deduction has been made, interest at 1% per month/part of the month shall be levied from the date on which such tax was required to be deducted until the date of actual deduction.
  • Where tax has been deducted but not paid to the government, From the date on which such tax was deducted until the date of payment to the government, interest at 1.5% per month/part of a month shall be charged.

FAQ’s on TDS on Professional or Technical Fees

Question 1.
Which section of the Income Tax Act enlists TDS on technical fees?

Answer:
Section 194J of the Income Tax Act enlists TDS on technical fees.

Question 2.
How is TDS on professional fees calculated?

Answer:
TDS on professional fees will be deducted at a rate of 10% under this section. TDS will be deducted at a rate of 20% if the income recipient does not provide his PAN to the deductor. There will be no surcharge, education cess, or SHEC added to the above-mentioned rates.

Question 3.
What is the maximum limit under Section 194J on TDS?

Answer:
The maximum limit under Section 194J is Rs.30,000, which applies to each item or payment separately.

B Khata Property Tax | Meaning, Types and How To Pay B Khata Property Tax Online?

B Khata Property Tax | Meaning, Types and How To Pay B Khata Property Tax Online?

B Khata Property Tax: In India, purchasing a property is undoubtedly one of the most visible shows of accomplishment, with a property shaping one’s lifestyle. Property acquisition is a huge amount of work, and it’s typical for a homeowner to assume that once it’s accomplished, they can unwind and take a break.

This, nevertheless, may well not be exactly accurate because purchasing a property entails an obligation, both to yourself and to the government.

You must always be aware of the property tax per square foot and must take special care to be cognizant of how to pay property tax online.

Paying the taxes online not only saves time and effort but also helps save on human resources.

Taxes are a government’s fundamental stream of income, with the number of funds collected influencing the resources readily accessible to taxpayers.

There is many commercial property tax calculator available online, and hence should not be that difficult to decide what amount you are liable to pay as the property tax to the government.

Failing to manage a property and pay the tax is pretty much equally as fundamental as buying it, and the inability to do so could culminate in a landowner being penalized.

B Khata Property Tax

What is a property tax?

Every property is a taxable entity, and the property tax is a yearly fee paid to the government by the owner of the property in question. Depending on government decisions, this tax might be payable to the regional state government or the Municipal Corporation.

In this respect, “property” refers to any tangible physical real estate under an individual’s ownership, which includes privately-owned residential property, office buildings, and properties rented to external parties.

It is important to remember that the term “property” applies to both land and additions added to it.

What is the BBMP?

The Bruhat Bengaluru Municipal Palike (BBMP) is an administrative body that maintains and supervises municipal services and also a large variety of infrastructural facilities throughout the Greater Bangalore metropolitan province.

Bengaluru’s property tax administration is primarily managed by the BBMP.

The Bengaluru City Municipal Corporation (BBMP) has the power to levy taxes from facilities that have been established unlawfully in Bengaluru.

What is a Khata?

After the BBMP was founded in 2007 to improve the assessment of property taxes from Bangalore citizens, the Khata idea originated. Property tax collection was a major headache for the government before 2007 since there were three different entities that gathered and had a role in revenue collection.

The Khata is revenue documentation that summarizes a property’s evaluation significantly in relation to its tax liability.

It is a kind of registration that incorporates statistics about the property, such as its physical location, structure, and constructed territory. It indicates that the owner of the property has deposited the applicable property tax to the relevant officials.

What are the two types of Bengaluru Khata Taxes?

Citizens of Bangalore pay:

  • A Khata Property Tax and,
  • B Khata Property Tax

Both are regulated by the Bruhat Bengaluru Mahanagara Palike (BBMP), Bangalore’s municipal corporation. The A Khata and B Khata are papers that confirm the ownership of the asset predicated on the taxes submitted to the BBMP by the landowner.

Illustration of the difference between A Khata and B Khata

Khata serves as proof that property taxes have been paid on a specific property.

In order to effectively engage out subsequent legal proceedings involving property specifics, every property owner in Bangalore should therefore acquire a Khata certificate.

The A Khata is a certification that indicates that an owner of the property has fully paid all relevant property taxes to the BBMP and is the rightful owner of the property. If you possess the A Khata credentials, which are obligatory for any other banking transaction relating to your property in Bangalore, your property is effectively authorized.

This B Khata enables the BBMP to levy taxes on unlawfully erected structures, such as those that contravene bylaws, are developed on revenue property, have unauthorized layouts, or missing completion or issue permits.

B Khata assets were entitled to some of the equivalent entitlements as A Khata properties; however, that distinction was invalidated by a landmark Karnataka High Court judgment announced in December 2014.

B Khata property can be elevated to A Khata by submitting additional betterment costs.

The fundamental difference between A Khata and B Khata has been illustrated below:

  • The property that falls under A Khata property can qualify for physical infrastructure like water, power, as well as other basic utilities, while the holder of a B Khata property cannot.
  • A Khata Property can be resold or transferred possession; however, a B Khata Property cannot be sold or transferred shareholding.
  • A Khata property holder can secure a loan from the bank for their estate from any national or commercial bank, while B Khata property holders cannot acquire a bank loan for their asset.
  • Only A Khata property owners are allowed trade licenses, but B Khata property owners are denied the right.
  • For A Khata properties, construction licenses can be actively sought, and properties can be renovated. However, property extension for B Khata properties is severely restricted.
  • Despite the reality that owners of both types of Khata certificates are capable of paying taxes, the government deems A Khata properties to be legal and legitimate, whereas B Khata properties are regarded unlawful or semi-legal.

What are the properties recognized by the BBMP as attributable to B Khata?

  • Buildings that have been established in violation of the city’s bylaws.
  • On tax land, construction has been conducted out.
  • Buildings that have been developed on the unregistered territory.
  • Buildings that have not been completed or recognized with an issuance certificate.

How to pay the B Khata property tax online?

Comply with the steps mentioned below if you don’t know how to properly pay the property tax for B Khata online.

Step 1: At first, the consumer must visit the BBMP’s official property tax portal.

Step 2: Next, they will have to select the “SAS Property Tax Payment” option, and from the drop-down menu, they have to select the information by which they want to fetch their physical asset, i.e., SAS Application Number, Property Identification Number or the PID, or Block Renewal Application Number. The most recent property tax receipt incorporates all of these details.

Step 3: The consumer will now have to enter their respective application number or PID, their name in the space provided for the same, and click on the “Retrieve” option.

Step 4: In the next step, all the details pertaining to their property will be displayed on the screen. If all information displayed is accurate and needs no further modification, the consumer will have to click on the “Proceed” option, and they will be consequently redirected to Form IV.

Step 5: If any changes need to be carried, the consumer will need to check the respective boxes before clicking on “Proceed.” The next page will redirect them to form V.

Step 6: Next, they will have to double-check if all the pre-filled credentials, including the tax amount, are correct or not and subsequently fill in the required credentials and submit them.

Step 7: Now, they will be shown the payment option, and they will have to pay in their chosen mode of payment.

The system will produce a receipt number following a successful transaction. After performing this procedure, you will be able to view, save, and simply print your e-receipt, which will feature the receipt number.

FAQs

Question: When is the BBMP property tax payment closing date for the 2021-22 budgetary year?

Answer: Payment of BBMP property tax is expected on April 30, 2021.

Question: Are there any penalties for late payment?

Answer: You will be legally entitled to a 5% credit if you complete your transaction before the given deadline. Every month, a 2% interest financial penalty will be levied to late fees.

Question: What is the function of a Khata?

Answer: Provides an opportunity to learn about the property owner’s credibility as well as all of the property’s pertinent information.

Property tax filing and payment becomes effortless.

Indore Property Tax Meaning, Payment Procedure and How To Enroll

Indore Property Tax | Meaning, Payment Procedure and How To Enroll?

Indore Property Tax: Property tax is a due payment by the owner of the house to the local municipal corporation. In the issue of Indore, it is the Indore Municipal Corporation; in short, it is IMC. Indore property owners need to have a comprehensive understanding of the estate tax rate and payment methods. In this article, you will get to know about what is IMC Indore property tax, steps to pay Indore property tax online, E Nagar Palika Indore, Nagar Nigam Indore, search property tax by name, how to pay IMC property tax, calculation of Indore Nagar Nigam property tax, the official website of IMC property tax due dates and rebates of Indore property tax, tax calculation of IMC property, etc. So let us dive directly into it.

Indore Property Tax Meaning

What is IMC Indore property tax?

It is an amount that the homeowner pays to the local municipal corporation, and in the case of Indore, it is IMC. The municipality utilizes this tax collected to maintain and improve public structures like roads, lighting, bridge, etc. This tax can be paid in both ways -online and offline.

These services are registered to the IMC official portal:

  • Nagar Nigam Indore
  • Bill Payment Kachra
  • Estate Tax Pay
  • Indore tax receipt of estate
  • Tariff Indore diversion payment online
  • Nagar Nigam Property Tax
  • Property Search Tax
  • Indore Property Tax Ledger IMC
  • Tax Calculation of Property in Indore

How to compute Indore Municipal Corporation (IMC) property tax payment?

If you want to know the annual IMC property tax liability, you can instigate property tax computation in Indore.

Automated tax calculation

By visiting the mpenagarpalika.gov.in website.

Here you will get the choice of paying tax in the middle, and by taking the cursor to it, you will get the property tax selection choice.

Bring the cursor to the property tax selection choice, click the quick pay selection option after opening the menu. Then a new page will open.

Now, click on search after writing Property ID; it will display the amount to be paid on the screen.

Standard tax calculation

One can calculate Indore property tax physically. Firstly the Plinth Area ( PA) needs to be calculated. Then the current rate of rent per square foot is based on the market rate of the possession, which is the Monthly rate value (MRV) per square foot of the residence. One can calculate the property tax using the formula mentioned underneath, and you can use this formula only for residential structures.

PA-MRV ×12(0.17-0.30) – 10% (depreciation) +8% (library cess)

The IMC Indore property tax calculator can also do this calculation.

IMC property tax payment procedure

The payment of Indore property tax can be made online, too, making it as hassle-free and straightforward apparently. you can collect Indore property tax receipts regardless of any mode of payment.

Online payment of Indore property tax

  1. For paying, visit https://www.mpenagarpalika. gov. in.
  2. There in the middle, you will get a pay charges option. Then after taking the cursor, there will appear a drop-down with a property tax option.
  3. By taking the cursor to property tax choice, another menu will appear on the right side. Click the quick and payment option.
  4. Then a new, fresh page will appear there; you will be asked to enter your Property Id.
  5. After giving the property id, it will display all the associated details and about to be paid. Then by choosing the mode of payment and paying with any given payment gateway options.
  6. Once the payment is made, you will get a reference number, which you can further use in the future.
  7. Indore property tax payment offline
  8. To begin with the procedure, one needs to follow these steps simply-
  9. Visit the closest municipal office and give your name along with the address and property ID.
  10. The amount needs to be given at the counter, and an IMC Indore property tax receipt is to be used for confirmation of the payment.

E Nagar Palika portal enrollment

The residents can join by the e-Nagar Palika official portal to get the additional unit assistance by the following steps:

Step 1: The applicant should select the relevant objective.

Step 2: After the selection of the service, it will turn the page to the next step, in which they have to select the city name and then select the continue button to move further.

Step 3: After these, the availing service page will open up. When applied, the applicant will get an acknowledgment digit as the assurance of efficient submission of the appeal.

About Nagar Nigam Indore

IMC is the regulating body of Indore in Madhya Pradesh. The civil association comprises of elected members, led by the mayor and governing the social assistance.

And city’s infrastructure. The generals of the state are members of several political groups holding elected chairs in the corporation.

E Nagar Palika citizen aids

The Government of Madhya Pradesh has initiated e-Nagar Palika, a united way to give e-Governance to the residents in the state.

E-Nagar Palika will assist as a sole setting for associating many cities; all municipalities and associations connect online through this digital platform, giving lenient government aids to society.

The Madhya Pradesh government has taken on stimulating all the residents through this portal. The following are the facilities of resident assistance:

  • Birthing Registration
  • Demise Registration
  • Wedding Registration
  • Estate taxes
  • Waterline Bill Payment
  • Fire No objection certificate
  • Plea for waste Collection
  • Petition for scrap Collection
  • Plea for Certificate of evidence and extinguisher Service
  • Petition for the putrefying tank
  • Water Tank request
  • Ambulance service request
  • Funeral van request
  • Citizens are facilitated to make payments online for quick assistance through this portal. Residents can complain if needed.

E Nagar Palika business assistance

Following are the facilities for the business people:

  • Storing Registration
  • Collecting New Application
  • Hoarding expense
  • Market License
  • Business License online form
  • Business License payment
  • Business License Certificate download
  • Renewal of Business License
  • Exchange records report

The grievance of e-Nagar Palika

This portal gives users grievance assistance. If the by any chance user has any grievance against any departmental aid, he or she can pertain to for their resentment and also can trace the grievance.

Wrapping up

To conclude, it is indispensable for individuals living in Indore to know about how to pay taxes, its procedures, and methods, all in detail.

I hope this exclusive article helped you to understand more about Indore property tax and the process that the users need to strictly follow to pay the tax, and it is quite a necessary step which needs to be accomplished within the specified or set time limit, for residents of Indore.

Frequently Asked Questions (FAQS)

Question 1.
In Indore, what is property ID?

Answer:
Indore municipal corporation allots party identification numbers to fundamental properties, which are known uniquely as the property ID.

Question 2.
How can one complain to IMC?

Answer:
An individual can generate a complaint to the IMC by using Indore 311 Application, which is designed solely for the purpose of generating any sort of complaint or grievances towards the system.

Coimbatore Property Tax Calculator, How To Pay Offline and Online, Water Tax

Coimbatore Property Tax | Calculator, How To Pay Offline and Online?, Water Tax

Coimbatore Property Tax: The Coimbatore City Municipal Corporation (CCMC), the civic organisation that oversees the city of Coimbatore in Tamil Nadu, relies heavily on property tax. The CCMC offers a variety of services to its people through its official website, including a straightforward property tax payment method.

Property owners must pay the local body the property tax, whether they own a residential or commercial property. The corporation collects the tax twice a year, on a half-yearly basis. The many facets of Coimbatore property tax payment are discussed in this article.

This article guides you about the Coimbatore Property Tax assessment number, Coimbatore Corporation Water Tax online payment methods, and how to find out the Coimbatore property tax due date.

Coimbatore Property Tax Online

Property tax

The residents of Coimbatore now have access to both online and physical services. However, if the option is available, we advocate paying all forms of taxes online. We also provide a simple method of making a payment online. The Coimbatore City Municipal Corporation covers an area of around 246.75 km2 (95.27 sq mi). What is the name of the large area in Tamil Nadu? You can, however, pay your House Tax online by following the steps below.

Water tax

Water is a requirement of life, thus paying the Coimbatore City Municipal Corporation water fee on time is critical. The official web has a payment option for CCMC water bills. To pay your owing Water Tax online, use the direct link provided below. After property tax, water tax is one of the most important sources of revenue for CCMC. As a result, you should pay your water tax as soon as feasible. You may pay your water bill by going to the official website of the Coimbatore City Municipal Corporation.

Property Tax Calculator

Coimbatore City Municipal Corporation (CCMC) Property Tax Payment Guide – Every year, owners of residential properties in Coimbatore must pay House Tax to the Coimbatore City Municipal Corporation (CCMC). Property tax money are used by the municipality to support important civic infrastructure and services.

Citizens can utilise the CCMC portal’s online tax calculator to calculate their property taxes. The property tax rate is determined by a number of criteria, including the property’s location, age, and kind. It’s crucial to figure out the plinth area (PA), which is the entire built-up area that includes covered spaces like balconies and garages, for tax purposes.

If the property is self-occupied, the current market rent per square foot for similar properties in the region is evaluated before the property tax is calculated. If the property is rented, the monthly rental value (MRV) mentioned in the rental agreement must be taken into account.

The following are the many factors used to compute property tax in Coimbatore:

  • Area of the building’s plinth
  • Building areas that have been approved and those that have not been approved
  • Monthly Rental Value/Rent per square foot (MRV)
  • Whether it’s a household or business structure,
  • Utilization of the structure (per sq ft)
  • Location of the property
  • The property’s age
  • Ward of the Municipality
  • Per-square-foot rate
  • Depreciation

The rate per square foot (decided by the zone in which the property is located) and depreciation are calculated using data from the CCMC website.

How to pay property tax online

If you own a home in the city, you may pay your house tax by following the steps below:

Step 1: Go to the website of the CCMC. Scroll down to the Online Tax Payment option and click on ‘Pay Your Tax Online.’

Step 2: You will be taken to the appropriate district’s online site in Tamil Nadu, https://tnurbanepay.tn.gov.in/.

You may pay your Coimbatore property tax online by clicking the ‘Quick Payment’ tab on the front page. Select ‘Property Tax’ from the drop-down menu.

On the following page, fill in the relevant information, such as the assessment number and the previous assessment number, to continue.

Step 3: Log in to the website with your registered cellphone number or email address and password if you are a registered user. If you are a first-time visitor to the site, click on ‘New User Registration.’ Complete the form and click the ‘Submit’ button.

Step 4: After logging into the website, select the ‘Make Payment’ option from the drop-down menu.

Step 5: On the next screen, fill in information such as the assessment number and the previous assessment number. To learn more about the property, go to ‘Search.’

Step 6: Double-check the information. Select ‘Submit’ from the drop-down menu.

Step 7: On the next screen, fill out the captcha and click ‘Confirm.’

Step 8: Select your desired payment gateway choice on the payment screen, such as net banking, credit card, debit card, or UPI. To continue, click ‘Make Payment.’

Step 9: The transaction will be confirmed, and the receipt number will be shown on the website. Take a photo of the receipt or print it off for future reference.

How to pay property tax offline

Citizens in Coimbatore can pay their property taxes in person at the Coimbatore City Municipal Corporation’s office. They can also make payments at e-Seva centres and licenced banks. The property tax invoice for the payment period will be sent to the property owners.

They must complete the self-assessment form and make payment at the appropriate counter.

How to change the name in property tax online

Citizens can apply for name changes on their property taxes using the CCMC site. An application, along with the necessary documentation, must be sent to the corporation. Application forms are available at the ward offices’ information centres.

Documents Required for Property Tax Name Change

  • The essential ownership documentation
  • In the case that the former owner dies, a legal heirship certificate is issued.
  • In the case that the prior owner passes away, a death certificate will be issued.
  • a copy of the most recent tax payment receipt

Takeaways from this article

  • What is the procedure for obtaining a copy of the Coimbatore Property Tax Receipt?

As described in this post, the Coimbatore Property Tax receipt may be obtained after making an online payment on the CCMC official webpage. The receipt is available for download and printing.

  • What is the deadline for paying property taxes in Coimbatore?

Property tax payments in Coimbatore are typically due on March 31 and September 31 of each year.

The city of Coimbatore has a population of 1,050,721 people, and everyone needs to leave their lives in a comfortable manner. As a result, individuals must pay taxes each year since the government will charge them more money if they do not pay by the due date.

Kanpur Property Tax Meaning, Calculation, Fees, Documents and Penalty

Kanpur Property Tax | Meaning, Calculation, Fees, Documents and Penalty

Kanpur Property Tax: Property taxes are an utterly vital part of homeownership. Homeowners can either have the personal taxes added to their mortgage statements that the tax lender collaterals in an escrow account, or the individual can pay them one after the other; however, it’s crucial to pay them. Governments assess belongings taxes based totally on area and value.

Kanpur Municipal business enterprise (KMC) is one of the largest business and Business Municipal corporations in Uttar Pradesh, India, extended to a complete vicinity of approximately 260 Sq. KM with a populace of roughly 2.5 million human beings (2001 Census).

As domestic costs maintain upward thrust, this means that it’s better to keep the house tax check. Nowadays, one can go for a house tax check online too. In this article, let us get into the KMC house tax.

Kanpur Property Tax Online

Endeavours of the Kanpur Property Tax

A property tax utility has been developed, presenting a GIS interface to carry out conditional.

Queries on databases such as ‘Tax accumulated via sector’ or ‘Tax amassed in a financial year for a selected Ward’, and so on. The database is connected to spatial layers to display the effects of evaluation and queries on GIS maps.

The software also permits the KMC staff to calculate tax primarily based on digitized regions considering the Unit location approach and generating diverse styles of MIS reports required inside the day after day operations of KMC.

The primary focus of the utility changed into offering a server primarily based Geographical Information system with essential spatial layers and hyperlinks to the relevant textual or graphical records available in the database. Owners of residential homes in Kanpur are liable to pay residence Tax to the Kanpur Municipal agency (Kanpur Nagar Nigam) every 12 months. The municipality makes use of the funds gathered as belongings Tax to offer essential civic facilities and services.

The Kanpur Municipal organization has simplified the evaluation and series of property Tax techniques with extra transparency. It empowered the Kanpur Nagar Nigam to restrict the boom and reduce in house Tax to a sure volume and allow self-evaluation of one’s assets Tax.

What is meant by Property Tax?

Property tax is paid on belongings owned with the aid of an individual or other felony entity, including an organisation. Property tax is an actual estate advert-Valorem tax, which can be considered a regressive tax. It is calculated by using a local authority where the belongings are placed and paid with the aid of the proprietor of the belongings.

The tax is generally primarily based on the fee of the owned belongings, including land. However, many jurisdictions additionally tax tangible non-public property, such as motors and boats. The neighborhood governing body will use the assessed taxes to fund water and sewer enhancements and provide law enforcement, fireplace safety, training, street and toll road creation, libraries, and different offerings that advantage the network. Deeds of reconveyance do not engage with property taxes.

How does one calculate Property Tax?

The calculation of property Tax varies foundation the following:

Elements that need to be considered while calculating property Tax:

  • The state or municipal corporation, type of assets, etc.
  • Calculation techniques range among distinct civic businesses
  • Accurate details concerning the locality, status of occupancy – rented or self-occupied, sort of property – land, residential, business, infrastructure presented, ground and carpet location, variety of floors of the construction, and so on.
  • The tax amount can be automatically computed on the municipal corporation website while you accurately point out the desired details.

The standard method that is observed at some point of the calculation of property Tax is:

Property tax = base value × built-up area × Age factor × type of building × category of use × floor factor.

About the Payment of Property Tax

The online and offline facilities are ultimately available for the residences of Kanpur. However, Kanpur faculty advocates others to make the price of all forms of taxes online, if available. They have their online portal through which one can quickly pay their taxes without attending to all the paperwork manually. Taxpayers can calculate their taxes online.

However, you can study approximately how the Kanpur Municipal business enterprise calculates house Tax if you follow the appropriate link, the official link. Usually, the interest charge on assets tax varies between five Percent and twenty Percent of the supply of Kanpur Municipal organisation property Tax Kanpur Nagar Nigam house Tax online.

Kmc.Up.Nic.in is the reputable website of Kanpur Municipal business enterprise. The portal gives an online choice to its users. If the citizens go to the website Kmc.up.nic.in citizens will pay assets tax, water bill, residence Tax, professional Tax, and many others.

How to make the payment for the Kanpur property tax

The way to Make a fee online for the assets Tax of Kanpur Nagar Nigam?

Within the first steps, you want to go to Kmc.up.nic.in. Then discover and click on the belongings Tax online fee link. Input the specified information, and take charge.

As a result, you may choose any technique consisting of UPI/Net Banking or NEFT, or IMPS to be had at that point. If you have any questions concerning Kanpur Nagar Nigam assets Tax/house Tax, contact the hyperlink of Kanpur Municipal corporation assets Tax Kanpur Nagar Nigam house Tax online Kmc.up.nic.

What are the fees of Kanpur Nagar Nigam residence Tax?

The Kanpur Nagar Nigam place Tax Calculation is straightforward.

  • Residences with average rental Values (ARV) as much as Rs. 1, two hundred need to pay a belongings tax of 10%
  • Properties with common condominium Values (ARV) over Rs. 1, two hundred have to pay a belongings tax of 15%
  • ARVs change each year, relying on the apartment potential of the location. As a result, your house tax value will also keep converting.

How do we calculate the Kanpur property tax?

The Nagar Nigam Kanpur residence tax is calculated based totally on the following elements.

  • Year of production
  • Land location
  • Included vicinity
  • Assets use – residential or non-residential
  • Place – <12m from the road, 12-24m from the road, or >24m from the road
  • Sort of construction – Pakka A, Pakka B, or Pakka C
  • Annual condominium value (ARV)

The yearly rental price and the year of construction keep changing, and as a result, the property tax value additionally marks a differing year on year.

What documents do you need for the payment?

If you hold your Kanpur Nagar Nigam residence Tax charge online, you handiest need your PIN to make the price.

If you are travelling to the Kanpur Nagar Nigam workplace to make the fee, carry the receipt that you may download online and identity proof.

Kanpur property tax self-assessment

Self-assessment is a method of calculating the ordinary property tax in Kanpur Nagar Nigam to your building primarily based on the market cost of the property, its condominium cost, its location, and other specific details supplied by using the KMC.

If you are constructing a residential or non-residential property, you need to fill the self-assessment utility shape while the building is finished or occupied, whichever is in advance.

People who don’t complete the evaluation form, also called the ‘Saral form’, will have to pay the penalty decided by the Kanpur Nagar Nigam.

Steps to complete the Kanpur tax self assessment

  • Head to the official link http://kmc.up.nic.in/
  • Go to the “Property Tax information” on the left side of the screen
  • You will get to choose between the residential and non-residential self-assessment of property tax, so select your one.
  • For residential properties, fill in all your necessary details and then click on ‘calculate tax’.
  • If you are going for non-residential properties, fill in the form presented to you and click on ‘calculate tax’.

The penalty of not filling up the self-assessment form.

If the proprietor has completed a task or occupied the belongings but hasn’t submitted the self-evaluation form, they should pay a penalty of Rs. 500 per day or double the tax quantity.

Suppose the business enterprise unearths that the self-assessed tax price is much lesser than the vicinity standard. In that case, you will deliver a simple hobby of 12% consistent with annum to the stability quantity, and the pursuit gets brought periodically until the dues are cleared.

So it’s vital for the residents of Kanpur to fill up the Self-assessment form to easily avoid all the penalties mentioned above.

Which buildings or residences are exempt under the Kanpur property Tax.

Below is a listing of homes that might be exempted from paying Nagar Nigam Kanpur residence tax.

  • Buildings where the dead are disposed
  • Homes of public worship
  • Homes for charity purposes
  • Colleges and middleman schools strolling on authorities aid
  • Monuments
  • Building or land with annual fee < Rs. 360
  • Residential homes occupied by owners themselves are constructed in 30 square m or much less and with a carpet area of 15 square m or less.

Mutation taxes

The mutation of property in Kanpur nagar is the trade of ownership of assets due to numerous motives like dying or sale at the KMC factories. Here are the mutation costs you ought to recognise about;

Causes of Mutation The Fees to be paid in Rupees
Due to the death of the owner Rs. 5,000/- + Late Fees(if applicable) + Publication Charges
Register deed Rs. 5,000/- + Late Fees(if applicable) + Publication Charges
Family settlement Rs. 5,000/- + Late Fees(if applicable) + Publication Charges
Order by court Rs. 5,000/- + Late Fees(if applicable) + Publication Charges
Caused by registered sale deed 1% (One Percent) of Purchase value or Market value (the higher one) of the property as per Registry + Late Fees (if applicable) + Publication Charges
Caused by registered gift deed 1% (One Percent) of Purchase value or Market value (the higher one) of the property as per Registry + Late Fees (if applicable) + Publication Charges
Registered Hibba 1% (One Percent) of Purchase value or Market value (the higher one) of the property as per Registry + Late Fees (if applicable) + Publication Charges

Which services does the Kanpur official website provide

  • The main benefits that the Kanpur official portal offers are;
  • Pay assets tax online
  • Get your home tax receipts
  • View your house assessment information
  • Put up the self-evaluation form of the belongings tax
  • Get mobile alerts for all tax-associated data
  • Opt for mutation of belongings

What is the penalty for not paying the tax on time

If a person pays the Kanpur Nagar Nigam residence Tax but has not paid it on time, then a 12% simple interest would be charged. This simple interest of 12% would be charged from the last date for the fee until the day the dues are cleared.

The Kanpur Nagar Nigam has cleared up or made it very smooth to get all records about property tax payments on its website. When you have not given the Kanpur Nagar Nigam house Tax online price a try, then definitely use the web mode the subsequent time. This is easier, straightforward, and splendidly convenient to pay.

Even though you decide to make the payment offline, browse through the said website to get the personal Kanpur Nagar Nigam house Tax generated receipt or use the average tax calculator.

With the aid of being a diligent taxpayer of Kanpur Nagar Nigam residence Tax, you are held eligible to use all the conveniences that the Kanpur Municipality employer gives to its residants.