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The building tax, sometimes called house tax or property tax, is a local government charge levied by the municipality such as a panchayat, municipality, or municipal corporation.
There are three ways of calculating the building tax. One is through Capital Value System (CVS). It determines the amount of tax levied as a percentage of the market value of the property that is fixed by the government and based on the location of a property.
Under this system, the tax is calculated on the yearly rental value of the property, which may not necessarily be what is being paid as rent but it will be decided by municipal authority-based on size, area/location, condition, distance from landmark, etc.
This system levies taxes upon per unit price per square foot per month in built-up area multiplied by that area total.
To pay the building tax, one has the option to visit the MC office in the area or approved banks designated by the municipal corporation. When paying, one may need to provide the property tax number as one of the necessary details for identification purposes.
Compiled by Syed Muskan