Property Tax

Property tax is a tax imposed on real estate or other forms of property owned by individuals or businesses. The tax is generally calculated based on the assessed value of the property, which may include land, buildings, and other improvements.

Key Features Tax Base Applied to real estate property, including: Land Residential buildings Commercial or industrial structures Some jurisdictions may include personal property such as vehicles or equipment. Assessment Property tax is based on the assessed value, determined by a government assessor or valuation authority. The assessed value may be influenced by: Market value Location Size and usage Improvements or renovations Payment and Collection Typically collected annually by local or municipal governments. Revenue is often used to fund public services like schools, roads, sanitation, and emergency services. Purpose Provides stable and predictable revenue for local governments. Encourages efficient land use and property maintenance. Ensures property owners contribute to community development and infrastructure.

Example: A residential property is assessed at ₹50,00,000. Property tax rate = 1% of assessed value per year. Annual property tax = ₹50,00,000 × 1% = ₹50,000