Know How Building Tax Is Calculated And How It Can E-Filed

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What Is Building Tax

The collection of land and property tax by municipal authorities, also known as building tax, is based on real estate valuation. This tax amount depends on the property’s worth and is tied to its location or land value. 


Vacant Plots 

Municipal authorities typically don't levy tax on vacant land. However, in some major cities, such as Delhi, even vacant plots of land are taxed.

Vacant Plot

Annual Obligation

This tax is an annual obligation, with residential properties having deadline around November 1, though it can vary by state. Local governments determine this tax rate, typically as a percentage of the property’s assessed value.

Annual Obligation

Computation factors

Property tax computation includes elements, such as location, occupancy status, type, amenities, construction year, floor space index, and carpeted square area of the property.


Formula For Property Tax 

The formula for property tax is: annual value multiplied by the tax rate. The annual value is calculated by multiplying the unit area value per square metre by the property’s size, and then factoring in the property’s age, use, structure, and whether it is rented out.

Tax Formula

E-File Building Tax

The first step is to navigate to the online tax portal of the municipal corporation and fill in the applicable details by which the tax will be calculated. For first time users, an account will have to created. Existing users can directly log in to the account and enter the property account number to verify the available information and the tax amount. After this, they can pay the amount through Netbanking, following which a receipt will be generated.

Compiled by Syed Muskan


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