Call Back Request
Track Your Request
+91-7604047602 Legal Blog For Students Free Legal Advice Lawyer Login
{{ item.meta_value }}, {{ item.meta_key }}

The Nitty Gritties of Property Tax

Avik Chakravorty
The Nitty Gritties of Property Tax
The government levies property tax on all real estate owned by an individual. These real estate assets are inclusive of residential homes, office buildings and third-party rented premises.

What is a Property Tax?

A government’s main income source is the levy of taxes, and as the government’s coffers fill up through earned tax revenues, the citizen’s access to resources is ascertained accordingly. Ownership of property is ownership of a taxable asset and the property tax is paid annually by the owner of a property or land to the government. Depending on government policies, this tax could be paid either to the state government or the Municipal Corporation.

The term “property” in this regard refers to real estate owned by an individual and is inclusive of houses, office buildings and premises on rent to third parties. Conceptually property tax is logical and sensible and has been globally acknowledged as is evidenced by the farmers and peasant’s records of their paying property taxes in the middle ages too.


Property Tax in India

Types of Property


There are four major categories that property in India is classified into which aids the government in estimating tax based on certain prerequisites. The categories or classifications of property in India are


·        Land

·        Building on land

·        Personal property

·        Intangible property


Present State of Property Tax

Real property inclusive of land and improvements on land is what property tax in India is paid on. The government appraises the monetary value of properties individually and tax assessment is done based on the value of each property. The municipality of a certain area is duty-bound in doing this assessment and calculating the property tax, to be paid either annually or semi-annually. This tax amount is income or revenue for the government which is used for the development of local facilities including road repairs, maintenance of parks and public schools, so on and so forth. Property tax is based on location and therefore for each city and municipality, there may be a different property tax.

Capital Gains Tax on Property

When profit from the sale of the property is taxed, it's known as Capital Gains Tax and can potentially exhaust wealth if not managed deftly. The simplest solution in tackling this issue is to buy a new home utilizing the proceeds of the sale of a property provided the property is bought in no more than two years of selling the property. Proceeds from the sale of a property can be used to build a house, as an offsetting effect that eases the capital gains tax burden on the property.


Call 7604047601 for consultation with a registered expert property lawyer on Vidhikarya.



To Connect with Lawyers Online

Please enter the text



Send your queries to

[email protected]
Consult Property Lawyers from your City!
Post Your Matter
Post Your Matter to connect with the Lawyer online
Call 7604047602 for any assistance

Download the Clients App on

Vidhikarya App on Android Platform

Contact Details

[email protected]
505-A, Terminus Building,
Newtown, Action Area I,
Kolkata 700156

Download the Lawyers App on

Vidhikarya App on Android Platform

Certified by Startup India, DPIIT


Payment secured by :

PayUMoney PayPal net banking
visa master maestro