Paying property tax is a responsibility that comes with owning property in Pune. Whether your property falls under the Pune Municipal Corporation (PMC) or the Pimpri Chinchwad Municipal Corporation (PCMC), understanding the process of calculation and payment can help you manage your finances better. This blog provides an easy explanation of the municipal property tax payment process to ensure you stay on top of your dues.

What is Property Tax?

Property tax is an annual tax levied on land, buildings, and vacant plots within municipal limits. It is a significant source of revenue for municipal corporations like PMC and PCMC. This tax contributes to public infrastructure, services, and civic amenities.

Who Assesses Property Tax in Pune?

Property tax is assessed either by PMC or PCMC in Pune, depending on where the property is located. PMC has been managing property taxes since 1950 and has modernized the process by introducing Geographic Information System (GIS) technology for better assessment.

GIS Technology in Property Tax Assessment

To streamline property tax collection and identify unauthorized properties, PMC uses GIS technology. This involves geo-tagging properties, verifying dimensions, recording owner details, and capturing property photographs. Over 8 lakh properties are under PMC’s jurisdiction, and GIS has made it easier to track defaulters and increase revenue.

How is Property Tax Calculated?

Capital value-based system is used to calculate property tax. This system considers the current market value of your property to determine the tax. The formula is as follows:

Property Tax = Tax Rate × Capital Value

The capital value is calculated using these factors:

• Base Value: Derived from ready reckoner rates.
• Built-Up Area: Total covered area of the property.
• Usage: Type of property use (residential, commercial, etc.).
• Building Type: Nature of construction.
• Age Factor: Older properties often have lower tax.
• Floor Factor: Higher floors may attract different rates.

PMC and PCMC both offer online property tax calculators where you can enter details like locality, usage, area, and property age to estimate your Pune municipal corporation property tax bill.

Steps for Property Tax Payment

Online Payment for PMC Properties

1. Visit the official PMC website.
2. Select the ‘Pay Online’ option.
3. Enter your property details, such as property ID or owner details.
4. Verify the displayed dues and confirm your payment amount.
5. Choose a payment method, such as internet banking, debit card, or credit card.
6. Complete the payment.

Online Payment for PCMC Properties

1. Go to the PCMC website.
2. Click on the property tax section and access your bill by providing details like Zone and Gat Number.
3. Review your property details and outstanding tax amount.
4. Select a payment method and complete the transaction.

Offline Payment Options

If you prefer offline payments, you can pay property tax via cash, cheque, or demand draft. Payment can be made at:

• PMC or PCMC ward offices.
• Authorized bank branches.
• Self-payment kiosks.

Ensure cheques or demand drafts are addressed to the relevant municipal authority to avoid delays.

Important Dates and Penalties

PMC Deadlines and Penalties

• First Half-Year: Payment due by May 31.
• Second Half-Year: Payment due by December 31.
• Penalty: A 2% monthly penalty applies for payments made after the due date.

Rebates for Timely Payment

PMC Rebates

• Residential Properties:
  • 10% discount on general tax for properties with an annual value up to ₹25,000.
  • 5% discount for properties above ₹25,001.
• Eco-Friendly Properties:
  • 5% rebate for properties with solar panels, rainwater harvesting, or vermiculture.
  • 10% rebate if two eco-friendly systems are installed.

PCMC Rebates

• A flat 10% rebate on general tax if payment is made by June 30.

Income Tax Deductions

Under the Income-tax Act, 1961, municipal property tax payments can be deducted from the Gross Annual Value (GAV) of let-out properties. This deduction is allowed only if the tax is paid during the financial year.

Exemptions and Concessions

Certain properties are exempt from property tax, including:

• Properties used for worship or public purposes.
• Charitable institutions registered with the charity commissioner.

PCMC also offers special concessions, such as:

• 50% rebate for ex-servicemen, freedom fighters, and their families.
• 40% rebate for individuals with disabilities above 40%.

How to Avoid Common Issues in Property Tax Payment

• Always verify your property details online before making payments.
• Retain payment receipts to resolve future disputes.
• Use reminders to pay before the due date and avoid penalties.

How Bajaj Finserv Property Tax Payment App Can Help

The Bajaj Finserv Property Tax Payment App simplifies the process of paying your Pune municipal corporation property tax bill. With features like payment tracking, automated reminders, and a secure interface, the app ensures timely payments. You can store payment history for future reference and also calculate your tax.

Conclusion

Whether you opt for online or offline payment methods, ensuring timely payments helps avoid penalties and avail rebates. Use the available online calculators and payment platforms to manage your municipal property tax payment conveniently. By staying informed and organized, you can fulfill your responsibilities as a property owner in Pune without any hassle.