Property Tax Guide – Pune
In Pune, property tax is the second largest source of revenue, second only to Octroi. The Pune Municipal Corporation (PMC) is responsible for levying and collecting property tax payments in the city and successfully covers more than six lakh properties in its purview. Like many other major cities in India, Pune also has online as well as offline property tax payment facility. The best part is that the website can be viewed in English as well as the local language, thereby helping many tax payers who are comfortable only with the local language of Pune. Find below an insight into property tax and associated collection system in Pune.
How is property tax assessed and calculated?
The PMC has adopted a ready reckoner plus rental-based system for the assessment of property tax. To be precise, it is a capital value based system that is very rational and systematic. The property tax is a percentage of the actual value of the property which is based on the ready reckoner that is used to calculate stamp duty by the revenue department.
Online property tax calculator: The PMC offers an online calculator for the self-assessment of property tax. In this page, you need to enter your locality, area, usage, type and total plinth area to get the details of your property tax bill. A step-by-step guide for making payment is mentioned on the website of PMC.
Manual calculation of property tax: If you are keen on calculating the property tax amount manually, then you can make use of the following formula:
Capital value = Base value x Built-up area x Use category x Type of building x Age factor x Floor factor
Property Tax = Capital value × Rate of tax
As mentioned above, the capital value of the property can be found by referring the ready reckoner that is used to calculate stamp duty by the revenue department. The form with the details is available on the PMC website.
Where to pay the Property Tax Bill?
The online payment option is, undoubtedly, the best and most convenient mode of payment. You can visit the Pune Corporation website and input the asked details to pay your property tax bill online. The online payment system facilitates you to pay through the net banking system of the Bank of Maharashtra or through your debit card, credit card or cash card. If you choose to pay through debit/credit/cash card then you will have to pay 1% extra as transaction fee. If you are paying through cards of premium banks such as American Express, then you will have to bear a 4% transaction fee. However, you will not be required to pay anything extra if you are paying through Bank of Maharashtra or the net banking option of other nationalized banks in India. This is the detailed list of the kiosk locations.
Property tax rebates and discounts offered by the PMC
The PMC offers special rebates in property tax for properties owned by women and ex-servicemen. It also offers 10% discount to tax payers who clear their property tax dues between April 1 and May 31st in the particular financial year (tax amount being not more than Rs.25000) and 5% discount for tax payers who pay between these dates (for whom the property tax amount exceeds Rs.25,001).
Consequences in case of delay in payment of Property Tax
Citizens of Pune are fined with a 2% per month charge in case of delay in payments, which can accumulate to 24% per year. The tax payers should pay the property tax bill before 30th June every year to avoid the penalty charges.
