We know that for everything we have to pay Tax in India. For example, if you are manufacturing or producing goods you have to pay Excise Duty, if you are providing any services then you have to Service Tax. In the same manner, we have to pay Municipal Tax. To pay tax is not a bad thing it is a good thing because by the fear that they should pay tax the people will stop going in a wrong way and think once while doing anything. So for getting a clear information on Municipal Tax, on which you have to pay Municipal Tax read this article.
What is Municipal Tax
The Tax which is levied or charged by the local authority named as Municipality of the Country is known as Municipal Tax. This local taxes should be paid to the Municipal Corporation by the assessee if he owes a house property. Municipal Taxes are usually levied in India in the form of Property Taxes. This Tax is collected for sewer maintenance, civic services, etc. So, every Individual who is having his own house property has to pay this municipal to the local Municipal bodies. This Municipal Tax is collected individually by the State Municipal Authorities or charged by the local bodies of the City.
Municipal Tax is collected on 4 types of property they are:
- Improvements of Land such as Immovable Property like Buildings
- Personal Property.
- Intangible Property.
Factors for Calculating Municipal Tax
These factors may also change as per the States. For example, if we take a look on the City of Hyderabad, then these are following factors for which they are collecting Municipal Tax in Hyderabad.
- Location of the property.
- Type of building such as posh reinforced concrete or ordinary reinforced concrete.
- Use of building (i.e., residential, commercial, shops, etc.)
- Whether the property belongs to the owner or tenant.
- Area in square meters.
- Age of the building.
In case if we take Mumbai as our example, then these are following factors taken into consideration while calculating Municipal Tax.
- No.of Floors.
- Municipal ward or locality.
- In which they have constructed the property.
- Type of construction.
- Whether the property is self-occupied or it is occupied by tenants.
- Carpet area.
Municipal Tax Rates
As the Municipal Taxes are collected by individually by the State and City Municipal Corporations, the Rates may vary for each State. These Municipal Tax Rates are decided by the State Municipal Authorities. So every City has its own Municipal Tax Rates.
Municipal Tax Online Payment
To make the Municipal Tax Payment in Online then log on to the State Municipal Corporation official website. These are the following steps to make the online payment.
Step1: Log on to the State Municipal Corporation portal.
Step2: Click on Municipal Tax Payment.
Step3: Enter all the details like TIN No, Mobile No, Name of the Owner, Door no of the assessee.
Step4: Then finally click on Submit.
Step5: Select the mode of payment and make your payment.
Hence, these are steps to pay Municipal Tax Online.