After you buy a property, it is not the end of the legal steps and you need to immediately apply for mutation of the property. In West Bengal & Kolkata, mutation of property for paying municipal and property taxes is an important step and you must avail services from an experienced property lawyer. Mutation of a property from the previous owner to the present or mutation in general requires paying the pending tax bills before initiating the mutation process. At Advocate Chenoy Ceil, you will receive all the guidance in mutating your property in your name and paying property taxes regularly.
Property tax in India is the primary source of income for the government. The assets that are owned by individuals or corporations are taxable, and the annual amount paid is the property tax. Property taxes in India can either be paid to the local state government, known as the municipality tax, or to other local governmental boards. Property in this context implies all tangible real estate that is existing within the state. In India, property tax is paid on the real property, which includes land and any form of improvements made on the land. For NRIs who want to invest in properties in India, there is no limit to the number of residential or commercial properties that they can own. However, if you own multiple properties, then only one of those properties can be claimed to be self-occupied. The remaining properties will be deemed to be rented out, and you are liable to pay income tax on such properties. To save taxes on rental income, you need the help of professional tax experts who understand the different laws regulating property taxes in India.
Property Mutation & Tax Laws
If you are looking to buy or sell property, you should also be aware of the taxes involved. There are several forms such as Form 37(I) or Form 230 A that you may have to fill out to declare your property to the Income Tax department. In case of let out property, property tax varies from those that are self-occupied. Property tax is often considered as municipality tax in India. However, income from house property is different from municipality taxes. If you have a let-out property then you must be aware of that your gross total income chargeable to tax comes under various heads which may include “income from house property”. The gross annual value of your house property is allowed several deductions such as standard deduction, deduction under Section 24 and various other deductions which finally provide the total income from house property. There are set-offs and carryforwards allowed for the losses from house property. Property tax calculation in India is a complicated process and you should only consult professionals who have experience in filing income tax returns.
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