| Q: What is Property Tax ? |
A tax levied by urban local bodies, based on the value of property you own. |
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| Q: What are the properties subject to tax? |
Except the properties, which are exempted from tax under law, the tax is levied on all the remaining buildings, land, structures with land and all the non-agricultural lands within the limits of City Municipal Council. |
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| Q: Which property & whose property are exempted or assessed at reduced rate (concession) in case of Property Tax? |
The buildings used under the ownership of the Central and State for government purposes and the lands and buildings not intended for Commercial & Residential purposes ,public temples and charitable institutions are exempted from the payment of tax. |
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| Q: What is PID ? |
A unique ID is allotted for each Tax Assessee which is called PID. (Property Identification Number). |
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| Q: How do I calculate my Property Tax? |
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| Q: Do open plots invite taxes? |
Yes, they do invite taxes. As per Karnataka Municipal Act 1964 the span of property tax is not only limited to buildings, even the land falling under the jurisdiction of the corporation is covered in it.. |
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| Q: What is Property Tax Register? |
The particulars regarding the payment of tax by the owners and occupiers of the Land and Buildings in revenue division of each and every ward will be published in this Property Tax Register. The interested persons may verify the said details free of cost otherwise the requisite fee should be paid and the certified copy may be obtained. |
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| Q: Why do I need Extract of Property Tax Register? |
The extract of Property tax Register is one of the required documents in case you require a building license, trade license or loan from banks or any other financial institution. The extract of Property tax Register is also accepted in civil court as document to claim or give bail/surety etc., Lastly it is for all property owner/holders to pay property tax; hence you need extract of Property tax Register. |
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| Q: Who is eligble for obtaining extract of property tax register? |
All the property owners/holders or title holders and on whom the owner ship of property has been devolved by virtue of being as legal heir, or through other instruments like sale deed, gift deed, partition deed, release deed, will etc.,
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| Q: What is the difference between extract of property tax register and a Title Deed? |
As stated earlier, an extract of Property tax Register is an account of assessment of property for the payment of tax. The extract of Property tax Register is neither a record of rights nor does it confer ownership.
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| Q: What is transfer of extract of property tax Register? |
This is done when the title of property is transferred from one person to another by way of Sale, Gift, will or in case of death of the property owner, settlement release sale deed or by division of property through an instrument etc., where by another person becomes primarily liable for tax.
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| Q: How long will it take to issue of my extract of property tax register? |
When you pay property tax, the ULB is obliged to give you an extract of property tax register free of cost to you. In such cases it should not take more than 7 days to get your extract from property tax register. When you apply for a change in the property tax register it would take about 45 days to effect the change (as a notice of 30 days is required to be given to all interested parties).
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| Q: Which are the laws that have been enacted to bring into effect the system of self-assessment of property tax? |
The self-assessment of property tax system on the whole has been brought into force through the Karnataka Municipalities (Amendment) Act, 2000 and the Karnataka Municipalities (Amendment) Ordinance, 2003 and the Karnataka Municipalities (Amendment) Act, 2003. |
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| Q: What are the differences between the old Law and the new Law? |
In the old Law the Municipalities prescribed the rate of tax. The assessing officer was levying tax after fixing annual rental value of the property. The powers of deciding the value of the property and assessment of tax were with the tax officers. In the new Law, the Registration Department decides guidance market value of the property assessment as per Stamp Act in different areas and the municipalities fix the tax rate on the capital value. The owner of the property assesses on his own the property tax of his property, pays it and files the returns. For tax evaders the officers will fix the tax, impose penalty and recover the same. |
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| Q: What benefits does a self-assessor get and what are the problems faced by a tax evader? |
There is an offer of a concession of 5% for those who remit the tax for the year 2002-03 and 2003-04 before 30-9-2003. There is no fear of harassment, litigations to him. For those who evade tax without assessment of property, 2% of penalty will be imposed compulsorily for each month. |
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| Q: There is much difference in the value of land and building fixed by Registration Department from one street to another. So do we have to pay tax based on the value assessment made by the Registration Department? |
It is natural that the market value of land in different areas is different. Having agreed, hitherto, the market value fixed by the Expert Committee under Section 45B of Stamp Act since several years, it is not proper to oppose it now at the time of paying this property tax. It is inevitable to pay property tax as per the value announced so far. |
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| Q: Does it not affect on the revenue of municipalities if mass movement is held?
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IIt is an offence to organize mass movement in case of tax that has adverse effect on the revenue of municipalities. As per the Karnataka Prevention of Incitement to Refuse or Deter Payment of Tax Act, 1981, calling for a refusal of tax leads to 5 years rigorous imprisonment. The inciters for movement also are liable for 5 years' rigorous imprisonment. |
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| Q: After the municipalities passed the resolution of levying 0.3% tax on the vacant land the recovery was withheld. What to do now?
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On 16-6-2003 an Ordinance was promulgated reducing the tax rate for vacant land. The reduced tax rate for vacant land came into effect retrospectively i.e., from 19-11-2001. Hence the tax to be given for the vacant land is 0.1%. (Rs. 100 per lakh) for the first 10760 sq.ft of vacant land, in the next slab vacant land upto 43040 sq.ft the rate is Rs.25/- for each lakhs and for next slab of vacant land above 43040 sq.ft the rate is Rs.10/- for each lakhs. |
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| Q: What is the procedure for levying tax on the houses built on agricultural land within the limits of municipality?
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Agricultural land is exempted from property tax. But for the buildings constructed on agricultural lands, the value should be fixed based on the built up area and plinth area of the building. If the appurtenant land is used for non-agricultural purpose, property tax should be paid for that also. |
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| Q: One acre of agricultural land in the city limits has been converted. How to calculate the tax?
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If the agricultural land is converted property tax is to be paid. For the first 10760 Sq.ft. of vacant land, for 1 lakh at Rs. 100/-, further for the vacant land upto 43040 Sq.ft. for each lakh at Rs. 25/-, and for the vacant land above 43040 Sq.ft. for each lakh at Rs. 10/- should be calculated and paid. |
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| Q: What is the procedure for paying tax by the persons who have constructed unauthorized building?
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They should pay tax for each building. The owner of the building should pay tax even for unauthorized building. The officers shall receive the tax remitted by the owner. They should not refuse to receive tax for unauthorized building. The tax officers have the power of levying double the amount of tax for the unauthorized building after making an enquiry. |
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| Q: What is the procedure for paying tax by the persons who have constructed unauthorized building?
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They should pay tax for each building. The owner of the building should pay tax even for unauthorized building. The officers shall receive the tax remitted by the owner. They should not refuse to receive tax for unauthorized building. The tax officers have the power of levying double the amount of tax for the unauthorized building after making an enquiry. But, if the unauthorized buildings are located on the lands of Government / Municipal/ Forest Department (Public Institution) tax should not be recovered and Form III should not be served to them either. |
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| Q: Whether tax should be paid for the cowshed or sheds annexed to the houses?
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Tax should be paid on all types of buildings. |
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| Q: Can property tax be imposed on small sites with Sy.Nos. in town limits?
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Yes. Tax has to be imposed on sites at the rate applicable to vacant land and property tax has to be paid as such. |
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| Q: Is it compulsory for the charitable institutions to disclose details of appropriation of income?
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Charitable institutions exempted from taxation have to file the self-assessed property tax returns which should contain details of the charitable institution. If officers come to know regarding any fraud taken place in the name of charity, they can impose tax on enquiry. |
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| Q: Can a person who does not have khata in his name, pay the self-assessed property tax?
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Yes. All property owners must pay the property tax and file the returns. All the property owners whether they have khata or not in the old system should pay the tax and file the returns. (Excluding unauthorized buildings situated in Government / Municipal / Forest Department's land).
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| Q: There is confusion over khata. What is khata?
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Khata means Register in Form-MAR19 in which tax is imposed. It is only an account of who is primarily liable to pay property tax, the amount of property tax, arrears of property tax, the details of site and building. A khata does not confer title or ownership . After introduction of Capital value based SAS, Form MAR19 is abolished and Account of property tax is being maintained in Form III. |
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| Q: Whether khata and record of rights are same?
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Khata shows dues of property tax. It is not Record of rights. Land Revenue Department or Survey Department has power to write Record of Rights and Municipality does not write record of rights |
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| Q: What is the reason behind the opinion that khata of municipality is record of rights?
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Khata means a Register written in Form – 19 imposing property tax (now being written in Form III ). It is insisted in the circular of the Department of Land Revenue that while selling the property, a copy of Form 19 (now Form III ) must be furnished to the Sub Registrar for the assessment of the value of the property. Since the property tax is the first charge on the property, the lending banks used to ask for a copy of khata. For this reason people thought that khata itself is the Record of Rights. After the payment of self assessed property tax, the same shall be entered in property tax register and property tax register should be maintained as per Rule 106. |
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| Q: Whether tax should be paid for the cowshed or sheds annexed to the houses?
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Tax should be paid on all types of buildings. |
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| Q: What are the Rates of Property Tax? |
Residential->0.6%, Commercial->1.0%, Vacant->0.2% |
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| Q: How do I know my Property Depreciation Rates ? |
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| Q: How is my property assessed if used for both residential and non-residential (commercial) use? |
The residential portion is charged at residential rates and commercial portion is charged at commercial rates.. |
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| Q: I have rented out the property. Can I receive the property tax Bill at a different mailing address at my risk? |
Yes, you can specify a different correspondence address.. |
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| Q: What should I carry along with me for payment of Property Tax? |
- Measurement details of your property
- You need to carry notice or warrant if at all issued.
- In case you do not have these documents you can even carry old bill or receipts of payment & property municipal number.
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| Q: Any guidelines for cheques, other do’s and don’ts? |
Please make sure that the cheques you are submitting for payment to the CMC are crossed ‘account payee only’ and drawn in the name of Commissioner,City Municipal Council Raichur. Please retain the property tax bill and the receipt of the payment, as it may be required for various applications to the CMC. |
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| Q: What are the modes of payment for the bill ? |
You can pay your payment by cash to the banks, cheque (in city), DD. |
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| Q: Which are the banks where I can pay my property tax ? |
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| Q: Is there any concession in Advance payment of Property Tax? |
Yes, the concession at the rate of 5% will be allowed to the assessee, who makes the tax payment by submitting particulars during the opening of the month of financial year i.e., before 30th April. A concession of 50% is allowed on the building utilized for self-occupation Residential Building under this Self Assessment Scheme. |
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| Q: Who is responsible to pay Property tax in case of rented property-owner or tenant ? |
Owner and tenant, both are equally responsible for the payment of Property Tax. |
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| Q: What if the tenant has not paid Property Tax for several years and later on he vacates the property? |
Owner is responsible so we have no concern with the tenant. |
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| Q: What if, I don’t pay my property tax in the specified time period, what is the penalty for the delay? |
Penalty is 2 % every month for the payment of tax arrears. |
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| Q: Longtime unused/abandoned property : how about them ? |
The City Municipal Council is not concerned with whether the property is being used or not for a period of time. It is also not possible to keep track of occupancy of the property. So taxes are leviable till the property is in existence. |
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| Q: What is action against the un-authorized and buildings constructed in violation of rules? |
When the buildings are constructed without obtaining necessary official plan from the City Municipal Council and buildings constructed in violation of the directions and the rules, the officer of the authority may assesses the tax and levy penalty twice the assessed amount and further until the buildings constructed in violation of rules are set-right, the imposition of penalty continues every year. This action will not prohibit the law to take action against the unauthorized buildings.. |
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| Q: Whether the assessee derives the property right on the property subject to tax under Self Assessment Scheme? |
No. All the buildings, lands falling within the jurisdiction of City Municipal Council shall have to pay tax. There is no restriction that you should have Khatha, Mutation or Record of Rights to pay the tax and further the owners of any un-numbered property of the Municipal Council also have to pay the property tax and submit the particulars. The certified copy of the Property Tax Order and Property Tax Register relate the payment of tax. Separate action will be taken in accordance with law regarding the Mutation and Record of Rights. |
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| Q: What action will be taken against the tax evaders ad who do not pay the tax? |
Under this Self Assessment Scheme, all the buildings, properties and the lands falling within the limits of the City Municipal Council shall voluntarily calculate the tax, pay the tax and submit the tax paid challan with the property details within 30th June of every year compulsorily. The owners or the occupiers not following the said procedure will be issued claim notice under the Karnataka Municipal Act, 1964 and thereafter the movable properties of the owners or occupiers not paying the tax and penalty within 30 days will be attached and the tax and penalty payable will be realized by disposing of the said properties in action and with regard to the remaining tax, necessary application will be filed before the competent Judicial Magistrate and an order will be obtained for twice the penalty of remaining tax. Such action may be taken from the assessment year and within 6 years. This tax scheme is very easy and is formed in the interest of public. Therefore, the public are hereby requested to know the transparency of this scheme and be pleased to provide proper and true information to the authority, pay the property tax in time by submitting the particulars and co-operate with the Corpration for your over-all development and for providing sufficient civic amenities to you. |
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| Q: If I have a question regarding payment of my property tax, who do I call? |
Call your respective Revenue Inspectors . |
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