Must Knows

What is holding tax?

[ecis2016.org] Here is everything you need to know about holding tax.

Property owners in India have to pay direct taxes to local bodies on an annual or semi-annual basis.  Most commonly known as property tax, this levy is also known as holding tax in some states in India.

You are reading: What is holding tax?

[ecis2016.org] Types of land ownership

What is holding tax?

Holding tax or property tax is that annual charge which you pay to the municipal body such as the panchayat, municipality or municipal corporations in your area. The money earned by levying the holding tax is used for maintenance and upkeep of the basic infrastructure and other key facilities in the area including the sewage system, lighting, parks, etc.

[ecis2016.org] Know all about encumbrance certificate

How is the holding tax rate decided?

Read also : HSBC India cuts home loan balance transfer rate to 6.45%, the lowest in the industry

Local bodies typically charge a certain percentage of your property’s annual rental value as the holding tax under an Annual Rental Value System or Rateable Value System.

The Patna Municipal Corporation, for instance, charges 9% of the Annual Rental Value of your property as the holding tax.

Some municipal bodies also use the Capital Value System or the Unit Area Value System to calculate property tax.

Within a city, the rate of holding tax may be different for different individuals, based on the location of the property, the size of the property, the type of the property, the gender of the property owner, the age of the property owner and the civic facilities provided by the municipal body.

[ecis2016.org] Property tax guide: Importance, calculation and online payment

Which states use holding tax in place of property tax?

States where the term holding tax is used in place of property tax include Bihar, Jharkhand, Odisha and West Bengal. On the official websites of the municipal bodies that are responsible to levy and collect the charge, holding tax is the term which is used for property tax payment-related works.

Read also : Haryana Old Age Pension: Eligibility, registration and enquiries

[ecis2016.org] All about immovable property

When is the demand for holding tax generated?

Typically, you have to pay your due holding tax on property for each financial year on April 1.

[ecis2016.org] Know all about Transfer of Property Act

How to pay holding tax?

Holding tax can be paid offline as well online. Because of the ease of doing business, most people now pay holding tax online, using the official portal of the municipal body that levies the tax.  To pay your holding tax on property online, you have to keep your property identification number handy. You should also have access to online payment channels like net-banking, UPI, etc., to pay your holding tax online.

[ecis2016.org] Know about power of attorney for property

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Source: https://ecis2016.org
Category: Must Knows

Debora Berti

Università degli Studi di Firenze, IT

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button