Property tax, also referred to as house tax, is a tax that is imposed on real estate property owners by municipal authorities like the panchayat and municipal corporations. It is levied by the State Government, unlike Income Tax, levied by the Central Government.
Owners of real estate property who have rented out the property owned by them, have an option to claim the deductions from the rental income. This type of deduction is called a property tax deduction.
It is the owner of the property who is eligible to claim tax benefits on home loans. If the spouses are co-borrowers then too they can file for tax deductions.
A person can own as many properties as he wishes to and the government does not impose any such restrictions with respect to the number of properties that a person can own. Although deductions, as mentioned in Sec. 80C on the principal amount of a loan, may not be available in case of a second house
Section 80EEA of the Income Tax Act has been introduced to further extend the benefits that are allowed under Section 80EE for low-cost housing.
The consumer does not need to suffer from the calculation and payment of multiple taxes. GST (Goods and Service Tax) is an indirect tax that is levied on the supply of goods and services. It has also replaced several indirect that previously existed.
A loan against property is a secured loan which is obtained by keeping the property (residential/commercial) as collateral with the lender of the loan amount. Many people are of the opinion of investing into real estate, as it is considered to be a safer option as compared to other investments.
Every property is an asset for which tax is payable to the municipal corporation or the local state government and it is important that you know the various property tax documents required for the purpose of tax assessment, filing, and payment.