face book

Pune Property Tax Simplified: All You Need to Know

Buying a home is always an overwhelming experience in terms of emotion and finances. It’s a process that begins with setting a budget, searching for the perfect property, and then planning down payments and EMIs. For some property buyers, the journey goes one step further as they consider the yearly property tax they’ll need to budget for their new home.

In Pune, a city known for its rich history and rapid growth, the process of buying a property is both challenging as well as exciting. Property owners often find themselves navigating a complex set of rules and regulations when it comes to Pune property tax. 

Here you’ll find a simple guide to Property Tax in Pune and its process.

What Is Property Tax?
Property tax is an annual sum paid to the government by the landowner. The amount of the tax is based on the valuation of the property, and it is imposed to support city services. These services include road maintenance, water supply, sewage systems, and more. It is an essential source of revenue that helps to raise funds for various civic amenities and services in Pune.

In 2016, the Pune Municipal Corporation (PMC) reformed the assessment process for property taxes. The purpose of the initiative was to identify unauthorised and illegal properties in the city. The PMC began assessing property values, verifying the size of the properties, and collecting taxes based on the location of the properties.

property tax calculation
property tax calculation

Calculation of Property Tax

Pune Property Tax depends on four major factors:

  1. Valuation of the property
  2. Types of property (Residential, Non-Residential, Mixed and Miscellaneous, Industrial or NA Plot)
  3. Carpet area of the property
  4. Type of construction (RCC, Simple or Shed)

The simple formula to calculate Pune Property tax is:

Property Tax = tax Rate x Capital value
(Capital value = Bae value x Built-up area x Usage x Building type x Age factor x Floor factor)

You can also check the final tax amount of a property on the official website of PMC: https://propertytax.punecorporation.org/

Documents for pune property tax

Required Documents for Pune Property Tax
When it comes to property tax in Pune, there are two key categories of documents required: Ownership Document and Building Permission Document.

Ownership Document: Documents that establish your ownership of the property and include one or more of the following:
Sale Deed: The legal document that transfers ownership of property
Index II: A record of property transactions and agreements
7/12 Extract: An important record of the legal status of the plot.
City Survey Extract: A specific information about the property’s survey and boundaries

Building Permission Document: Documents issued by the Building Permission Department and may also vary on the type of property:
Occupancy Certificate: A document stating that your property is residential
Building Permission Certificate: A document that authorises your property’s construction
Building Completion Certificate: A document that certifies that your building is completed as per approved plans
Approved Plan: The official plan outlining the design and structure of your property

These documents are essential for property tax assessments in Pune. Make sure to get the appropriate documents based on your property’s ownership for a smooth property tax payment process.

due dates and penalties.

Due Dates and Penalties
Pune property tax payments are subject to a deadline set by the Pune Municipal Corporation (PMC). To ensure a smooth and penalty-free experience, it’s essential to be aware of these important dates and deadlines:
April 1st to September 30th, with a due date of 31st May
October 1st to March 31st, with a due date of 31st December

After the due date has passed, PMC sets a penalty period during which you will be charged a penalty of 2% per month.

What Is the Best Way to Pay Pune Property Tax?
When it comes to paying Pune property tax, there are several convenient methods available to ensure a smooth and hassle-free experience. The best ways to pay your property tax are:
Cash/Cheque/Demand Draft at a Ward Office
Cash/Cheque/Demand Draft at PMC’s Citizens’ Facilitation Centre
Online Payment
In-person at Banks (Cosmos, HDFC, ICICI, Yes Bank, and Bank of Maharashtra)

Property tax in Pune is a vital financial aspect for buyers and sellers. Whether you are buying a flat, home, or NA Plot, understanding how it’s calculated can help you manage this efficiently. If you want to know more, visit https://propertytax.punecorporation.org/faq.aspx and explore in detail.

Once you have decided to buy a NA plot in Pune, consider 46 Banyan Tree, one of the most sought-after addresses in Pune. They offer you comprehensive guidance and support throughout your property journey because staying informed about Pune property taxes is crucial to a successful and rewarding experience in real estate.