Every property is a taxable asset.’ It is necessary to pay tax on any house, land, building, flat etc., coming into the municipal area. Just as it is essential for an individual to pay income tax, it is also required to pay property tax on immovable property. The property owner has to pay this tax to the concerned municipal body for a year or half-yearly. If you miss paying this tax, you will face many problems. You understand it in the same way as if a person evades income tax; then he gets into the hands of government agencies. In the same way, if you default in paying the property tax, then many kinds of trouble can come here too.
According to the Mumbai Municipal Corporation Act 1888 (MMC Act), tax on a property is charged by adding several things. This includes water tax, sewerage tax, general tax, education cess, street tax and betterment charges. In some cities, property tax is paid twice a year, i.e. every half year, while in some places, it is collected once every year.
Why property tax is necessary
If property tax is sent to an individual owner and he fails to pay it on time, he can be charged with tax later, along with a penalty, interest, or both. For this, a warrant will be issued by the commissioner. The property can be attached if the defaulter still does not pay the tax within 21 days.
If the warrant is issued…
If the warrant is issued after declaring default for non-payment of property tax, the defaulting person will not be able to sell his property. Such property can neither be transferred nor can it be mortgaged. In general, terms, understand that if your property tax is due, then neither you can sell your property nor will you be able to transfer it to anyone. Not only this, but the concerned municipal body will also have the right to attach that property.
If the property is on rent…
If a property is on rent and its owner fails to pay the tax, then in such a case, the tenant will be considered the house’s owner and will have to pay property tax. As long as he lives on rent, he will continue to pay property tax. If the tenant does not pay the tax, then the municipal body will have the right to collect the tax from him.
not only will the house of the property tax defaulter be seized, but the municipal body will also have the right to seize other related goods and recover the tax by selling them. Not only this, but a case will also be filed against such a person in court, and in some circumstances, he can also be sent to jail.