Property taxes are the most crucial part of any homeownership, paid to the local government based on the property’s value. Through this contribution, you aid the infrastructure of fire services, schools, and even roads and highways.
As home prices escalate, so is the rise in the price of property taxes. This direct tax is levied on houses, shops, offices, etc.
Similarly, the residents of Pune have to pay the tax to the Pune Municipal Corporation. Pune is a rapidly advancing and growing city closer to the metropolis of Mumbai. Owing a property in this city is a big thing; when you do so, you must pay PMC property tax.
You may have doubts about how to pay property tax online in Pune. Is it online, or do I need to do it physically? Pune is a smart city, becoming a centric location for both industrial and educational hubs.
With the best infrastructure provided here, the contribution of property tax is for the betterment! If you are opting to buy a property, here is a guide to finding out the PMC property tax payment method.
The benefits of property tax payments
There are many benefits to paying property tax online and on time. Since people are unaware of the benefits, they may have serious trouble.
The property tax is essential to keep updated with the actual value of your land piece, and it helps in keeping your possessed asset value into account.
Plus, many cities in India follow a strict process of sending assessments to the property taxpayer’s home. It will create trouble for the taxpayer to keep the actual pricing of the property hidden.
When an individual pays property tax, it reduces administrative costs.
Compared to other taxes, property tax keeps you in a better position. Property tax paperwork will usually get charged much lower than other payments.
Property tax income seems more stable and simpler than sales tax or income tax, which makes it easier for the property taxpayer to determine the amount of property tax.
The taxpayer will know the exact information on the payment method and usage. Property tax rates are controlled locally; therefore, information about it is easier to find. The individual property owners will also have the understanding to assess their property.
Property Tax in Pune
Pimpri Chinchwad Municipal Corporation or Pune Municipal Corporation (PMC) are responsible for evaluating a property. They assess and give value to the property by levying taxes on it. PMC has been in charge of serving its citizen since 1950. With that, in Pune, property tax is the second largest revenue earned after Octroi.
There was a new introduction for automating the entire process and safeguarding the property tax.
To boost revenue, PMC September 2016 initiated geotagging properties. These were conducted in their jurisdiction while finding unauthorised and illegal properties through GIS. This practice includes verification of the property, mentioning the owner’s name, clicking the property picture, and documentation.
The geotagging of properties in Pune has led to a significant increase in the revenue for PMC. Through this, they can identify defaulters easily.
Property tax is necessary for all properties, including vacant lands within Municipal corporation limits.
What are the exemptions or concessions available when you pay your property tax?
There are some sorts of properties that don’t require the homeowner to pay property taxes. Yes, there are exceptions that you don’t have to pay any property tax, which is applicable in exceptional cases.
With that, some individuals are allowed concessions when they pay their property tax. For example, if the property is used for public or religious worship, you don’t have to pay tax. Moreover, if your property is registered for a charitable institute/trust by the charity commissioner, you can avoid paying taxes.
There are a few exceptions when talking about concession on paying property taxes. According to PMC, you get a 50% concession to those specialised individuals. It can be ex-servicemen/freedom fighters/their wives.
Also, individuals can get a 40% rebate if the property is owned and registered under the name of a disabled person. The disability, however, has to be above 40%.
The formula for Pune property tax computation
Before proceeding with how to pay property tax online in Pune? Let us find out how it is calculated. Property tax is the portion of the property’s actual value based on the ready reckoner and utilised by the revenue department to determine stamp duty.
Property tax = Tax Rate x Capital Value
Capital Value = Base Value x Built up area x Usage x Building type x Age factor x Floor factor
This data uses:
- Total Plinth Area
- Age of the Property
Both PCMC and PMC property rates are on the online portal.
Property tax Pune: How to pay online?
So, now the question comes of how to pay property tax online in Pune. Here are the easy and simple steps to follow for online payment.
- Visit the Pune Property Tax Portal and select your preferred or the appropriate payment method.
- After selecting an option, a new page will open where you must enter the property type, section ID, peth ID, and account number. Be very careful in putting all the details.
- After providing your information, you will see relevant data about your property, including any outstanding taxes. As needed, enter the additional data.
- Depending on the method of payment you choose in the first step, you will be directed to the payment gateway accordingly.
Other Methods of paying property tax:
- Through a mobile application: The application is called ”PUNE CONNECT”. The process is very simple; you can proceed with the payment by choosing your desired payment method. It can be either by credit, debit card, or even net banking and IMPS. The application can be downloaded through Google or any other.
Through the PMC website: you can visit the official website for payment of property tax online, allowing you to pay your property tax seamlessly.
You can proceed with the same by paying through any card type, digital wallets, and even net banking. It also accepts electronic bill presentations and IMPS.
- Or through banks: If the above method doesn’t fit your interest. You can choose to do it by visiting any of the banks. This process is done in person while connecting to any partnered bank via RTGS/NEFT, cash/cheque etc.
What is the last date for the payment of property tax in Pune?
The last date is usually May 31 to make your first half-year property tax payment, and the months are usually (April to September).
The second half (October to December) must be paid in full by December 31. Thus it helps you in avoiding all sorts of penalties.
If you cannot pay your property tax on time, a penalty of 2% is imposed monthly. It will start on July 1 for the first half-year and on January 1 for the second half-year.
In addition, tax refunds are available for those who pay their taxes on or before the dedicated timeline.
Real estate owners, be it a residential or commercial establishment, are eligible for a 10% discount on annual values up to Rs25000. Owners also receive a 5% discount if the annual value exceeds Rs25000.
How to pay your Pune property tax offline?
Now that you know how to pay property tax online in Pune. Now is the time you understand what is the procedure for offline payment. In some cases, if you cannot go about an online process, the alternative is present too. But, online payment is far better and simple to follow.
The first step is to understand which place, out of the many, you need to visit to pay tax payments online. Let’s have a look at the list:
- PMC ward office
- Citizen’s facilitation centre under PMC
- Any of the authorised branches of the banks can be HDFC, ICICI, Bank of Maharashtra and even Cosmos.
- Self-pay tax payment kiosks too
Individuals can pay the amount in different forms, and it can be either cash, cheque, or demand draft. The payment can be made by depositing cash, sending a demand draft, or cheque.
Always remember that the first step to paying your property taxes is to have your necessary documents in hand. The document includes everything from location to the area, property type, etc. If you have all the information in hand, it will help you in paying seamlessly. Now that you know how to pay property tax online in Pune. The process is simple and easy to follow, allowing you to make the right move.
Both online and offline option allows you to make the payment. However, digitalisation lets online procedures overpower everything; people from anywhere in Pune can pay their taxes on time without stepping out of their homes. As a responsible citizen, it is best to clear away such payments when needed.
Where in Pune can I pay my property tax?
You can pay your property tax at any bank with a partnership with PMC to collect it. It can also be done online through the PMC Pune Connect app. Also, you can do it right from your phone using Google Pay seamlessly. The only thing needed to clear the payment is to have your property ID ready!
How can I pay my Pune property tax online?
One can easily access to PMC online portal to pay property taxes.
It takes merely a few minutes for the processing of your payment. And, you can pay your tax with just your property details.
Why is property tax mandatory for everyone?
For individuals to abide by the law, anyone owing a house is eligible to pay a property tax. You risk receiving a hefty fine if you procrastinate paying the tax on time when There can be certain exemptions and concessions, depending upon the circumstances.
How can I determine the amount of my property tax?
After knowing how to pay property tax in Pune online, a few things are determined too. The location, area, usage, type, and age of the property must be entered too. It will help in calculating the property tax online.
Is there a Pune property tax discount available?
You may be eligible for reimbursement from PMC. But, this applies only to those living in a housing society with a rainwater collection system and/or solar water heating system. And, the discount is applicable for up to 5% only.
Are there any documents required for Pune's property tax assessment?
Yes, in Pune, you must submit papers as proof of ownership. It includes sale deeds, building completion certificates, city survey extract, and occupancy certificates.
How long does it take to finish the property ownership transfer process?
The ideal time frame for the ownership transfer is 15 days. If any concerns arise in the middle, there are chances for it to be delayed based on the objection.