Property Tax Punjab Online (2024)
Sep 21, 2023
When we talk about property ownership, one major aspect of it is property tax. It is essential that all land and flat owners all over the country pay their local municipality or governing body an annual property tax. This amount is utilised by the government to the best of the community’s interest. For example, such taxes are the source of funds for building sewer lines, constructing better roads, improving fire exits, etc. This blog will tell you about property tax in Punjab.
Property Tax Punjab: An Overview
A property owner in Punjab is liable to pay the Punjab Property Tax annually. Property tax Punjab is a mandatory tax levied by the state government. The property tax calculation in Punjab is typically based on factors such as property type, size, and location. Property owners must pay this tax annually, contributing to the funding of various public services and infrastructure projects.
Punjab Property Tax: Municipality Categories
In Punjab, property tax is categorised based on different types of municipalities. The property tax rates and regulations can vary depending on the municipality's classification. These categories often include urban areas, semi-urban areas, and rural areas. The 3 categories are:
| Category |
Cities |
| Category A |
Amritsar, Jalandhar, Ludhiana, Patiala, and SAS Nagar |
| Category B |
Bathinda, Phagwara, Moga, Pathankot, Hoshiarpur, Gurdaspur, Batala, Kapurthala, Khanna, Jagraon, Nangal, Rajpura, Nabha, Mandi Gobindgarh, Sangrur, Malerkotla, Sunam, Barnala, Kharar, Zirakpur, Mansa, Dera Bassi, Muktsar, Malout, Ferozepur, Abohar, Fazilka, Faridkot, Kotkapura |
| Category C |
Remaining cities of Punjab |
Calculation For Property Tax Punjab
The property tax calculation for residential properties in Punjab employs the following formula:
Property Tax Punjab = Ready Reckoner Rate of Property + Construction Cost (INR 500 per square foot) - Depreciation (10% of construction cost).
The annual cost is determined as 5% of the total cost, and a tax of 0.5% is charged on the annual cost.
For residentially rented properties, 7.5% of the annual tax is imposed. On the other hand, rented commercial and industrial properties face a 10 % tax.
Must Read: MCG Property Tax 2023: Pay Gurgaon Property Tax Online
How To Pay Property Tax Punjab Online
To pay property tax Punjab online, follow these steps:
Step 1: Access the Jamabandi Punjab website at jamabandi.punjab.gov.in.
Step 2: Choose the "Property Tax Register" option.
Step 3: Input the locality name and Property ID/Registration number.
Step 4: Provide the required details and complete the property tax payment.
Step 5: Download and retain the generated payment challan for future reference.
How To Pay Property Tax Punjab Via MSeva Punjab
The state government introduced an efficient way to pay property taxes seamlessly – the MSeva Punjab platform. Proceed as follows:
Step 1: Visit the official portal at https://mseva.lgpunjab.gov.in/.
Step 2: Create an account on the MSeva website, then select "Assess & Pay" after logging in.
Step 3: Enter essential details such as the owner's name, property ID, and house number.
Step 4: Use credit cards, debit cards, UPI, or net banking for the property tax payment.
Step 5: Obtain the payment receipt for future reference after a successful transaction.
How To Pay Property Tax Punjab Offline
Step 1: Visit the nearest Municipal Corporation office in your city.
Step 2: Complete the property tax Punjab form with the required particulars.
Step 3: Choose your preferred payment mode – cash, DD, UPI, net banking, credit card, or debit card.
Step 4: Verify the provided details before submitting the form.
Step 5: Once the payment is processed successfully, the relevant authority will issue an official challan. Retain the challan as evidence of property tax payment.
Latest News On The Punjab Property Tax
In recent updates regarding property tax in Punjab (July 2023), the Ambala Cantonment Board (ACB) has successfully collected over INR 55 lakh in property tax for the current fiscal year. To further enhance collections, ACB plans to initiate a door-to-door campaign within 15 days to encourage timely payments. A 1.5% rebate will be applicable during this period, after which no rebates will be granted. A penalty will be imposed on overdue taxes once this period concludes.
In Amritsar, property owners are offered a 30% rebate on Punjab Property Tax if paid before September 30, 2023. Mohali Municipal Corporation also offers a 10% rebate on property taxes paid by September 30, 2023.
Conclusion
Online and offline payment options allow taxpayers to settle their property tax in Punjab promptly. These initiatives aim to incentivize timely payments and ensure efficient tax collection processes. Through such cooperation, we can ensure development in our areas.
If you’re looking to take up a piece of property in Punjab, do remember to be aware of the property tax Punjab requirements there. Take up financial assistance through a home loan from SMFG Grihashakti to make things easier. You can take a loan of up to 90%* of the valuation of the property at affordable interest rates and convenient repayment terms.
Check your eligibility through our online eligibility calculator and apply as soon as possible to start living your dream of owning property.
FAQ's
How much is the property tax in Punjab?
The property tax in Punjab varies based on the type and category of each property. For residential properties, the fees range from INR 1 to INR 2 per square yard. Commercial properties incur a tax rate between INR 1 and INR 6 per square yard. Property under category A will be subject to higher property tax than those in categories B and C.
What is the property tax on residential properties in Punjab?
Property Tax = Collector Rate of Property + Construction Cost (INR 500 per square feet) – Depreciation (10% of construction cost).
5% of the total cost is taken as the annual cost, and 0.5% tax is charged on the annual cost. 7.5% of the annual tax would be imposed on residential rental property.
Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.