With the digitization of most processes, paying taxes no longer requires you to hire experts or queue in municipal offices. Be it paying taxes on property or on the profits from renting the said property, it can all be conveniently done online.
There are also alternate payment options that you can use to pay property tax online. This further increases the convenience of the process as it lets you choose options that better suit your individual preferences.
However, paying taxes on property online can have a process that takes time to follow. Hence, here is a detailed overview of how to pay house tax online and the available options.
What is House Tax?
Property tax, also known as house tax, is levied by local governments on property owners. The taxation rates are assessed based on the value of the real estate that taxpayers hold. Beyond a legal obligation, it is also a vital resource for governments to fund public services.
How to Pay House Tax Online?
Step 1: Navigate to the official website of your local municipal corporation.
Step 2: Log in to the portal. This will require you to register if it is your first attempt to pay property tax online. You will need to submit your personal information for identity verification.
Step 3: Once logged in, a ‘Property Tax’ tab should be available for you to access under a Services Tab. Click on it.
Step 4: Option for property types should be available on the screen E.g., You may see an option called “COC-603 Collection of Property Tax”; select one to continue.
Step 5: A tab with the option of assessment year should also be displayed. Select your desired financial year of assessment.
Step 6: Further personal details such as your name, property identification number, and other property-related information will need to be submitted for calculation.
Step 7: Once the calculation is done, the total tax amount to be paid will be presented. Preview it.
Step 8: Once done, a list of payment options will be displayed. Select one that is most convenient.
Step 9: Upon completion of payment, a download or print option for the challan will be displayed.
Step 10: Save and keep it handy for your future reference.
Please Note: The exact steps may vary depending on your location and the municipal corporation that runs the portal. However, the basic steps involved in your house tax payment procedures will remain similar to the steps mentioned above.
Benefits of Paying House Tax Online
- Convenience
You no longer need to visit municipal corporations or even hire chartered accountants to file and pay your property taxes. Moreover, the online process allows for flexibility in time and location, ensuring that you can pay property tax online no matter where you are or what time it is.
- Time-Saving
The online payment procedure eliminates the requirement of paperwork as well as long waiting times. This allows you to make quick transactions at your convenience.
- Accuracy
Digital platforms provide you with accurate, quick, and reliable calculations. This greatly reduces the risks associated with errors in manual calculations.
- Security
Reputable online payment portals have advanced encryptions and security measures. This helps ensure the safety of your financial transactions that are made online.
- Record-Keeping
Online payment portals also generate detailed digital receipts and transaction records speedily. This can make it easier for you to track payment history as well as access relevant information whenever required.
Alternative Online Payment Methods for Property Taxes
Apart from the official portals of the local municipal corporations, you also have the option of using third-party platforms like Paytm. The platform has an easy, streamlined process similar to the one mentioned above and has a user-friendly interface as well.
It is, however, recommended to use the official portals if you need to become more familiar with how to pay house tax online.
Conclusion
The online payment process for taxes on property has simplified the experience of paying taxes on property. This process not only offers convenience but also accuracy and security.
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Property Tax Online Payment FAQs
Is house tax a type of direct or indirect tax?
A house tax is a tax directly levied on property owners by the municipal corporation. Since it is non-transferable, it is a direct tax.
Are there deductions on property taxes?
In India, the Income Tax Act allows the following deductions on property taxes.
Deduction for Rented Property: If you own a property that is rented out, you can claim a deduction for the property tax paid on that property as part of your income from house property.
This is deducted from the rental income received, thereby reducing the taxable income. It's important to note that the property tax must be paid during the year for which the deduction is claimed.
Deduction for Self-occupied Property: For a self-occupied property, while there is no specific deduction for property tax paid, you can still claim a deduction on the interest on a home loan if you have one under Section 24.
However, the property tax paid can reduce the Gross Annual Value of the property, which in turn could potentially reduce the taxable amount.How can I check my property tax in India online?
To check your property tax online, you must visit your local municipal or tax department’s official portal. This can be done via a quick online search. Look for a tax payment section and then select the property tax payment option.
To see your property tax details, you will need to provide details such as your Property Tax Identification Number, address, mobile number, bill number, etc.
After this, you can proceed to pay your property tax online via the same portal.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.