Do we pay property tax first?

Q: Sir
I wish to buy a 20 year old,builder owned property.
property details
630 sq ft 2nd floor Prem's Corner
sr.no.29,House n0.41.
Dhankavdi Pune 43.
It is not registered yet with corporation,hence property tax not charged.
so do we first pay the property tax and then get it tranferred with a sale deed or vice versa?
How much property tax will have to be paid and what are the documents required?

Sameer Mohire,

2nd March 2016

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Replies (3)

Yes, the PMC property tax department issues a bill in the name of property owners stating that if you pay the bill before a given date you will get a rebate on the property tax. So, people or residents in Pune are trying to avail these benefits. It is a good way to incentivize and at the same time get dues well in advance for the PMC

Anup Soni, Pune

8th March 2016

Comment

Good afternoon friend!!!!
Documents that one should verify are duly stamped registry, ensure that no dues are accepted to the builder, check for the seller's name in Municipal records, confirm seller's membership in the society (if formed), ensure there is no pending bills, charges or taxes, make sure that the property is mortgage free, sanctioned building plan that ensure authorize construction, previous title documents that ensure chain of title is complete.

Vatsa Suman, Pune

8th March 2016

Comment

As far as taxes is concerned, a buyer needs to pay the following taxes at the time of registering the property: TDS on amount exceeding Rs 50 lakhs for the purchase of immovable property excluding agricultural land. The TDS must be submitted in the name of the seller, Stamp duty on registration, if a ready-to-use property is purchased from the seller then service tax is not applicable and Value Added Tax (if applicable in the state).

Bhaskar Chandavarkar, Pune

8th March 2016

Hi all,
I heard that PMC has decided that property owners will get a 10% rebate on the property tax if they pay it before May 31. Moreover, the corporation will grant a 10% rebate in taxes to housing societies which have a solar system and vermin-compost in their premises. Is it true?

bashir,

8th March 2016

Yes, you have to pay the property tax first and then get register. list of documents that you should verify before registering a property are approved plans, title certificate from advocate of current date, copy of IOD and Commencement Certificate, stamp duty paid receipt, demand draft for payment of Registration fees, property card showing CTS No. of plot, PAN card of buyers and sellers etc.

Vatsa Suman, Pune

8th March 2016

Comment

Hi Vatsa,
I am planning to buy a resale property. I want to know that what are documents need to be verified before buying a resale property?

Rishi Dev,

8th March 2016

Hi sameer,
Stamp duty can be as high as 8% of the property value and registration charges could roughly be around 1% of the property value. So in total they add up to around 8% to 10% of you house cost.

Shrabani Deodhar, Pune

8th March 2016