According to the Income-tax Act, 1961, evading tax is a criminal offence in India. Individuals who evade taxes by misreporting or underreporting income are subject to a hefty fine and /or imprisonment for at least 7 years.
However, the repercussions for evading different types of taxes vary as per the authority’s issuance. When it comes to property taxes, individuals are liable to pay a penalty of 1% to 2% of the due amount monthly in case of a delayed or missed payment.
To avoid such implications, individuals should pay all taxes in time. Ideally, property tax is an amount paid by plot or property owners to their state or local government. The process of computing and filing property tax is both cumbersome and complicated.
Nevertheless, the option to pay taxes and receive property tax bill online makes the entire process smooth and hassle-free. To understand what makes the process of paying taxes online is a better alternative one should become familiar with to avail the accompanying benefits.
Advantages of paying property tax online
Taxpayers who pay taxes as per their property tax bills online tend to benefit in these following ways –
- Quick and hassle-free payments
Online property tax bill payment is a quick process and facilitates instant payment. It helps taxpayers to avoid late fees and penalties even when they decide to file for taxes at the last moment.
Nevertheless, taxpayers are recommended to try filing taxes at least a few days before the last day to account for any mistakes that they are likely to make during the e-filing process.
- An easy option to track payment status
Individuals who decide to pay their municipal taxes online can track the concerned payment status easily through a simple login at the designated portal. Such a feature allows taxpayers to stay updated about every payment-oriented development. It not only eases worries regarding non-payment but also enables taxpayers to arrange for subsequent formalities.
- Instant acknowledgement
When individuals file property taxes online, they receive instant acknowledgement of the same. It eases the worries of taxpayers regarding the filing process and provides them with the scope to follow up about the same if required.
- Access to challan
Paying house tax online also comes in handy for accessing the property tax receipt readily. For instance, if taxpayers lose their property tax challans and receipts, they can easily retrieve them from the e-filing portal.
Besides these, filing property taxes online helps save a lot of time and energy, while streamlining the entire process. Nonetheless, to make the most of the online payment mode, taxpayers must become familiar with the steps involved in streamlining the process. Also, new property owners should find out how they can avail tax benefits on their loans against property.
Steps to pay property tax online
Most civic authorities allow individuals to pay their property taxes through their designated official websites. However, to use the forum for tax payment, both new and existing property owners must carry a Property ID.
For instance, individuals can pay NDMC property tax online by following these simple steps –
Step 1 – Visit the official website of NDMC.
Step 2 – Click on ‘Sign up’ to register on the website.
Step 3 – Enter the required details and then click on ‘Submit’.
Step 4 – Login to the website using relevant credentials.
Step 5 – Enter the Unique Property Identification Number to register the property. Individuals who have not been assigned this unique number yet can apply for it on the web portal and then proceed to get their property registered before paying the tax liability.
Step 6 – Choose a property to pay taxes.
Step 7 – Calculate the property tax before paying it. Ideally, NDMC applies the ‘Unit Area System’ to compute taxes.
Step 8 – Proceed to pay the taxes through a suitable gateway.
Once these steps are complete, taxpayers may proceed to collect the property tax receipt. Individuals who plan on availing a loan against property should become familiar with the steps involved to apply for the same, wherein submitting these receipts as proof of property ownership carries a critical weightage.
They should thus check out the list of documents needed to apply for a loan against property. Also, they should check the features and offers accompanying it.
Select financial institutions also provide pre-approved offers to customers to simplify their experience of availing finance. These offers are applicable to financial products like home loans and loans against property. Check your pre-approved offer online with essential contact details only.
Lastly, before filing property tax online, one must make sure to compute the taxes accurately. To do so, one can use a reliable property tax calculator and avoid discrepancy in the outcome successfully for appropriate tax liability payment.
Additional Read : How Personal Loan Repayment Plan Can Help You To Save Money?
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