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PROPERTY
TAXES
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While
reviewing a possibility of owning a home, one
invariably comes across many cross
roads- whether to build or buy, whether
to live or for investment's sake,
whether a flat or an independent house.
Investment in immovable property
may yield lucrative
returns but ignorance or any slipshod while
drafting the agreement
or failure to follow the ground
rules would only compound the problem.
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Stamp Duty and Property Taxes
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FLAT
VALUE
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STAMP
DUTY
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Upto Rs.1,00,000
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NIL
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Rs. 1,00,000 - 2,50,000
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0.5% of the value
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Rs. 2,50,000 - 5,00,000
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Rs.1250 +3% of the value above Rs.2,50,000.
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Rs. 5,00,000 -10,00,000
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Rs. 8750 +6% of the value above Rs. 5,00,000.
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Above Rs.10,00,000
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Rs.38,750 + 8% of the value above Rs.10,00,000.
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Other
Charges
Conservancy
Charges - 13%
Water
tax - (if no water meter is provided) - 2.5%
Water
benefit tax - 2%
Drainage
benefit- 4%
Trees
Cess - 1%
Fire
brigade - 0.75%
Street
Taxes - 5%
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Procedures
for Tax Assessment
The property taxes are payable for all flats as
built-up property from the date of obtaining
the completion certificate for the flat. The property
taxes are calculated on the basis of rateable value
of the flat.
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The Estimated Rent
(ER)
for assessment is predetermined as mentioned below :
Rs.1 to Rs.1.30 per sq.ft. per month on carpet
area for residential premises depending on the
location.This rent per sq.ft.per month is multiplied by 12
months to get the annual rateable value.
In this Estimated Rent Value, 40% is given as
concession for self-occupied residential properties.
After deducting this 40%, what we get is the Concessional
Rate(CR). 15% is then deducted for maintenance charges. The
balance is called the rateable value of the
property.On the rateable value, Stamp duty is payable on
purchasing a flat.
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