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Property Tax Ludhiana

Property tax is one of the most important sources of revenue for the state government. It is a form of direct tax levied by the municipal corporation on real estate properties per year.

This tax is levied on the following:

  1. Corporate buildings

  2. Residential buildings

  3. Residential colonies

  4. Vacant land reserved for commercial or residential purposes

The state of Punjab has divided its municipalities into three wards - A, B and C. Category A has been divided into three sectors. The cities which come under category A contain the highest property tax. Category B and C are divided into two sectors each.

Property Tax Collection in Ludhiana

The annual property taxes are calculated for each square yard. It is calculated as follows:

Property Tax = Collector Rate of Property + Construction Cost (Rs. 500 per square feet) – Depreciation (10 percent of construction cost).

In the case of rented-out properties, the rental has to be determined through the rent agreement.

  • For Residential Plots

    • 5% of the total cost is taken as the annual cost and 0.5% tax is charged on the annual cost.
  • For Vacant Plots

    • 5% of the collector rate of the vacant plot would be taken as the annual cost and 0.5% of tax is charged as the annual cost for vacant plots whose area is between 100 to 500 square yards.
  • For Rented Plots

    • 7.5% of the annual tax would be imposed on residential rental property and 10% for rented commercial, industrial and organizational property.
  • For Renovated Plots

    • In case you are modifying/extending/renovating your existing property or house, the amount of property tax increases. You will be required to reassess the property tax applicable once the modification is complete.

How to Pay Property Tax in Ludhiana?

You can pay property tax in Ludhiana via offline as well as online modes:

Steps for Offline Mode

  1. You need to physically visit the nearest municipal ward as per your residence category (A, B or C). You can locate the nearest office from mcludhiana.gov.in/contact_us.html

  2. Obtain an application form and fill the same with all your details. Also, the form can be availed by paying a nominal fee.

  3. Submit the duly filled application form and the tax amount in one of the computerized counters.

  4. Post payment, you will receive an acknowledgement slip. This receipt acts as proof for paying property tax.

Steps for Online Mode

  1. You need to visit the official mSeva website of Punjab Municipal Corporation and create/register your user ID and Password.

  2. Once logged in, select Property Tax tab under Property Tax section.

  3. Click the option ‘Assess & Pay’ from the menu to get option for selecting ‘Add new property’ or search property for which assess is already done.

  4. Complete the tax preparation as applicable.

  5. Fill in the details of your property.

  6. Check all your details and scroll to the bottom of the page to make the payment.

  7. You can make a partial payment or pay the complete amount. Enter the amount and click on Pay to get a popup box and then click AGREE & CONTINUE.

  8. Now, you will be directed to the payment gateway.

  9. Once the payment is made, a receipt with name and address of the property owner will be displayed. You can download this receipt.

Penalty

If the property tax is not paid within the given time limit, the property owners are charged a 20% penalty along with 18% penal interest on the outstanding property tax amount. The property tax is payable annually and the due date is 31st March for the applicable year.

FAQs on Property Tax in Ludhiana

Which buildings are not required to pay property tax?

All buildings and land exclusively used for religious rites and ceremonies, cremation and burial grounds, historical and heritage buildings as notified by central/state government/UNESCO, charitable trusts and organizations exempted from payment of income tax under the IT Act, 1961.

Are parking spaces subject to property tax?

No property tax is levied on parking space used for multi-story buildings, government hospitals and schools.

What about freedom fighters?

The state government has exempted freedom fighters receiving a pension from the government from paying property tax.

Are there any additional property tax exemptions?

The state government has provided property tax exemption upto Rs. 5,000 annually to widows and persons with a disability who are eligible to claim tax benefits under Section 80U of the Income Tax Act, 1961.

Are government aided buildings allowed tax exemption?

Yes, education institutions other than government-owned or aided school/colleges, can claim property tax exemption annually upto 50% of the assessed tax.

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