Property taxes in India have undergone a change in the system of taxation. Property tax is levied on both real and personal property. But the assessment or both are different. The property tax rates of India resemble the US type wealth tax and differ from the excise type UK rate. Property tax rate in India is accompanied by number of service taxes, like water tax, drainage tax, sanitation tax, lighting tax etc. The tax rates are effective under the municipalities not under panchayets.
The property tax rates in India vary among the cities. The taxes applicable on the things are not always equal.
Property tax rates in India have the following features:
• The tax rate is given in percentage.
• The amount of tax per hundred currency unit of property value is expressed as permille in which the amount is calculated.
• In India the owner of the property are liable to pay taxes.
• In the UK the tenants are also liable to pay taxes.
• The property tax rate is levied on the basis of reasonable rent and thus the tax payer can claim his/her right of ownership over the property.
• The property tax rate in India is calculated and paid on yearly basis.
• The monetary function of property is done by the authorities who do not work directly under the municipality.
• The reasonable rent can be actual rent if it is found to be fair and actual.
• In India the property taxes are applicable on property articles and also on real estate articles.