The affinity towards owning a home in Tier II and III cities is rising. With more IT companies establishing their working spaces and offices in these cities, there has been an advent in Indore, Jaipur, Amritsar, Jamshedpur, Kanpur, etc.

With the increasing property count, it is also important to understand the other aspects of owning a property. If you’re a homeowner in Indore, you’ll be responsible for paying property taxes to the Indore Municipal Corporation (IMC). Property tax is a source of revenue for the IMC, which funds essential services like sanitation, infrastructure development, and public safety.

What is Property Tax?

In the simplest of terms, property tax is the tax levied by the municipal corporation on the ownership of the property. It is a yearly charge based on the value assessed of the property. The property’s assessed value is determined by factors like location, age, size, and amenities related to the property.

How is Property Tax Calculated in Indore?

The property tax in Indore is calculated using a formula. This formula takes into consideration the following factors:

• Carpet area of the property: This is the usable floor area of your property, excluding common areas like balconies and staircases.
• Use of the property: Residential properties generally have lower tax rates than commercial properties.
• Age of the property: Newer properties may have slightly higher tax rates than older properties.
• Location of the property: Properties located in prime areas or areas with better infrastructure may have higher tax rates.

The formula for calculating Property Tax:

Property Tax= (Carpet area* Base Rate + Location Factor) – Discount

To understand it, if you own a 1000 sqm apartment in one of Indore’s prime locations. The base rate in that area might be ₹50/sqm. Considering the factor of 1.2 for location and a discount of 5% for property age, the tax would be calculated as follows.

Property Tax = (1000*50*1.2)-5%

= 60,000-3,000

= ₹57,000

When and How do you pay property tax in Indore?

The payment date of property tax in Indore usually falls around June or July. You can pay your property tax online through the IMC website or mobile app, at designated bank branches, or through authorized agents.

Benefits of Paying Property Tax on Time

Paying your property tax on time offers several benefits, including:

• Avoidance of penalties: Late payment of property tax attracts interest and penalties.
• Eligibility for discounts: The IMC sometimes offers rebates or discounts for early property tax payments.
• Contribution to city development: Property tax is a crucial source of revenue for the IMC to fund essential services that benefit all residents.

Become an Informed Homeowner

Understanding property taxes is essential for responsible homeownership in Indore. By familiarizing yourself with the calculation process, bill components, and important dates, you can ensure timely payments and avoid any complications.

Royal Greens encourages you to be an informed homeowner and take pride in contributing to the city’s progress through your property tax contributions.