Property Tax in India: Complete Guide for Homeowners
Understanding Property Tax
Property tax is an annual municipal tax levied on property owners. The revenue funds local infrastructure and services.
Tax Calculation Methods
Unit Area Value (UAV) System: Tax = Built-up area × Age factor × Type factor × Occupancy factor × Floor factor × Use factor × UAV
Capital Value System (CVS): Tax = 20% of capital value × Tax rate (varies by city)
Rental Value System: Based on annual rental value of property
Tax Rates by City
- Mumbai: 0.05% to 0.12% of property value
- Delhi: 5% to 20% of annual rental value
- Bangalore: 0.2% to 0.4% based on usage
- Chennai: 20% to 40% of annual rental value
- Hyderabad: 0.1% to 0.2% of property value
Rebates and Exemptions
Early payment discounts of 5-10% are common. Senior citizens, women owners, and properties below certain values may get additional rebates. Religious and charitable properties are often exempt.
Online Payment
Most cities now offer online payment through municipal websites. Save receipts for income tax deductions under Section 80C.
