Owning property comes with paying property tax, but understanding your property tax receipt can be confusing. This receipt is legal evidence that you have spent your tax, which puts you on good terms with the local authorities.
Whether you’re a homeowner or looking to invest in real estate, knowing property documents is a must, and one of these important documents is the property tax receipt. It records your payment and becomes mandatory when you undertake any legal or financial transactions related to your property.
Let’s discuss what a property tax receipt is, its significance, and how to get and use it briefly in this blog.
What is a Property Tax Receipt
A property tax receipt is a legal document authorised by your municipal corporation or panchayat as proof that you have paid your property taxes for a certain period, often annually or semi-annually. This information contains, for example:
- Property owner’s name
- The street address and tax identification number of the property
- Tax assessment amount
- Payment date and mode
- Acknowledgement or reference number that the tax filer receives from the Income Tax Department of India.
You must keep this receipt for tax compliance purposes, as it may be necessary in the future during various legal and financial procedures related to your property.
Why is a Property Tax Receipt Important?
- Legal Evidence of Payment: The receipt is your legal evidence showing that you have paid your property tax, and this serves as your defence in case you encounter disputes or penalties.
- Vital for Property Sale: When selling your property, a tax payment receipt is necessary for the smooth processing of the sale.
- Compulsory for Loans: Lenders can request a property tax receipt whenever you apply for a loan against property, as it proves your ownership.
- Dispute Resolution: Assists in settling disputes with local authorities over payment matters.
- Documenting: It is necessary to have copies of accurate personal or business financial records.
- Compliance with Law: This is most applicable when required to comply with a legal or regulatory requirement regarding property ownership, such as mortgage compliance with tax law regulations.
Understanding the Property Tax Process
What owners owe in property taxes is a product of the property tax rate and the property’s current market value. The tax rate is normally readjusted by the authorities every year.
Most property taxes are collected on real property, which includes land and anything permanently attached to it, such as buildings or other structures. It can also include rights related to the space above the land, even if nothing is built there. Although “real estate” usually refers to the previously mentioned property, it can also refer to items built upon, growing upon, attached to, or discovered within the land.
Naturally, property owners are responsible for paying the municipally set rates. A tax assessor, chosen or employed by the township, determines the value of real estate and imposes taxes using the most recent fair market values. This is the amount that requires a property appraisal.
If property taxes are not paid, the government can place a legal claim called a lien on the property, which must be cleared before the property can be sold or transferred.
Documents Required to Get Your Property Tax Receipt
If you’re retrieving a new or duplicate property tax receipt, you may need the following documents:
- Previous returns for the income tax (if available)
- Any ground rent, property identification number (PID), Khata number, or any other relevant number, title, or other designation, as applicable, of the registered property.
- Sale deed or title deed
- An aadhaar card or any of the ID cards accepted as proof of identity
- Address proof of the property.
- Copy of the demand notice/tax bill.
Obtaining Your Property Tax Receipt
You can obtain your property tax receipt through online or offline methods:
Online Process:
- Web Portal: Log in to the web portal of the local municipal corporation to download and print the receipt.
- Municipality Office: Visit the nearest municipality office and request a receipt from the tax personnel.
- Mobile Apps: Download the government or municipal mobile apps for property tax services.
- Email Request: Submit a request by email to the tax office in your area, along with your property information.
- Contact Customer Service: Please get in touch with the municipal authority’s customer service for inquiries about receiving your receipt.
If you consider Pune city for instance:
- Web Portal: Log in to the web portal of the Pune municipal corporation (https://propertytax.punecorporation.org) to download and print the receipt.
- Municipality Office: Visit the Pune municipal Corporation Tax Department and request a receipt from the tax personnel.
- Mobile App: Download the PMC property mobile app for property tax services.
- Email Request: Submit a request by email to propertytax@punecorporation.org, along with your property information.
- Contact Customer Service: Please get in touch with the municipal authority’s customer helpline at 1800-103-0222 for inquiries about receiving your receipt.
Offline Process:
- Visit the local municipal office or civic help center with your property papers and ID card. The staff may be able to check for old receipts or issue a new receipt with verification.
- Some urban local bodies also provide doorstep services or services through call centers.
If you consider Pune city for instance:
- Visit the Pune Municipal Corporation (PMC) Tax Department office or with your property papers and ID card.
- Address: PMC Building, Near Mangla theatre, Shivajinagar, Pune – 411005.
- The staff may be able to check for old receipts or issue a new receipt with verification.
Common Payment Methods:
- Municipal office counter
- Official municipal websites (e.g., BBMP, MCGM, etc.)
- Mobile apps
- Citizen service centers
- Authorized bank branches, dedicated payment centers, UPI-based apps, online banking platforms, auto-debit facilities, credit/debit card payments, and digital wallets for smooth convenience.
How to Use Property Tax Receipts?
Once you’ve received your property tax receipt, you can use it in various ways:
- Property Sales: Present the receipt when a property is sold or its ownership is transferred.
- Loan Applications: Use the bank receipt as proof of tax compliance.
- Tax Returns: Add the receipt to your annual tax returns as proof.
- Record-Keeping: Keep the receipt as proof of purchase for future reference, reimbursement claims, and your financial records.
- Dispute Evidence: You can also use the receipt to prove any disputes with the tax authorities.
Conclusion
A property tax receipt may feel like just a piece of paper, but it is one of the most important documents in your property file. Verifying your title, obtaining a loan, or selling property is crucial in every real estate deal.
Whether you’re a first-time homebuyer or a seasoned investor, keeping a close eye on your property taxes and holding on to all those receipts can save you from legal and financial headaches in the future.
Make it a habit to keep physical and digital copies of your property tax receipts safe! You never know when you’ll need them.
Apoorva H P Achar