Occupancy Certificate (OC)

Tax Glossary Definition

Occupancy Certificate (OC)

An Occupancy Certificate (OC) is an official approval given by the local municipal authority to confirm that a building has been constructed as per the approved plans and meets all safety and regulatory standards. It legally certifies that the property is safe and fit for people to live in or use for business. Without an OC, occupying the building may be considered illegal, and utilities like water, electricity, or gas may not be provided.

Example: When a new apartment building in Mumbai is completed and successfully passes inspections for fire safety, structural strength, sanitation, and basic utilities, the authorities issue an Occupancy Certificate, allowing residents to legally move in.

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