Buying a new home is an experience full of emotions, and calculations.
You set a budget, search for the right home loan, and plan for down payment and EMIs. This is the classic financial planning of a homebuyer.
However, some homebuyers go a step further and calculate the yearly property tax they would incur on their new home as well. Some do it just to stay informed of the tax amount, some do it to calculate savings on income tax, while some do it to compare return on their investment versus tax.
So whatever your reason may be, we thought of offering basic information of Pune Municipal Corporation’s (PMC) property tax, to keep you well informed while buying a property.
Introduction To PMC Property Tax
In September 2016, the PMC made reforms in the property tax assessment process. This initiative was started with the objective of identifying unauthorized and illegal properties and to increase revenues for the city’s development. The PMC began verifying size of properties through Geographic Information System (GIS), verifying their documents, assessing values of properties based on their location, and levying tax.
Calculation Of PMC Property Tax
Property tax depends on four major factors- type of property (Residential, Non-Residential, Mixed, Miscellaneous, Industrial or Open Land), carpet area of the property, ready reckoner rates of a property (government valuation), and type of construction (RCC, Simple or Shed).
A simple formula is used by PMC to calculate property tax:
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)
While some developers can provide you the final tax amount of a particular property, you can visit PMC’s website and calculate tax to verify it yourself.
Documents Required For Assessment Of Property Tax
There are two types of documents that are needed-
1. Documents establishing ownership of property (any or multiple of the below ones depending on your case)
2. Documents issued by Building Permission Department (any or multiple of the below ones depending on your case)
Timelines For Paying Property Tax
The PMC has mandated two timelines for paying property tax in a year-
You will be charged a penalty of 2% per month if you make a payment beyond the due date.
Property Tax Bill
There are three ways you can get your property tax bill-
You can pay property tax in four ways-
This is just the basic information related to property tax. If you would like to explore it in detail, you can visit propertytax.punecorporation.org/faq to read about the frequently asked questions and answers.
Also, if you are buying a property at Amanora Park Town, feel free to visit and ask us any queries related to property tax. We are committed to make your homebuying experience hassle-free.