Paying Municipal Taxes Online: A How-To Guide

For years, municipal tax, also known as property tax, has been recognized worldwide. If you own a property in India, you will be expected to pay property tax to the urban local authority under the area your property lies. 

The property here includes all tangible real estate property such as a residence, office building and even the property rented to others. Now, many people out there have serious concerns. How to pay municipal tax online? Well, it’s not that tough if you use the right application on your internet-enabled smartphone.

Like most other taxes, municipal tax is imposed by the government to generate money for a public purpose. Now, it is essential to know that this tax is compulsory to pay and enforceable by law. 

What is Municipal Tax?

Like other taxes in our country, a municipal tax is to be paid every single year and is charged by government officials on all tangible property an individual owns. Remember, the onus of paying such tax lies with the owner of the property and not the occupant living there in case its rented. 

So, even if you have rented your property, you are only liable to pay the property tax. It is significant to know that you must pay property tax annually, and also that late payments attract a fine. In the current era, many people might have a question regarding ‘how to pay municipal tax online?’ as we all depend on our smartphones for almost everything. 

Do not worry; it is possible and effortless with just a few taps. (Step-by-step guide mentioned below)

How is Municipal Tax calculated?

Before doing your taxes, it is essential to know on what basis it is calculated. Unlike the income tax, this tax has a lot of factors that come into play to calculate it.

It is based on its valuation and appraisal depending on the locality in which an individual resides. The total tax amount varies as per the locality’s type of levy, facilities available, and other various factors. After acquiring all this information, you can even calculate it yourself before paying the tax to crosscheck whether you are on the right track or not. 

The formula for calculation of Municipal Tax is – 

Property’s base value x Building type x Age factor x Built-up area x Floor factor x Use category. 

What are the different types of Property Tax in India?

The property tax amount is determined on the type of property. 

The three types of properties in India are – 

• Personal Property – Can be movable assets like vehicles
• Land – Initial form devoid of any construction.
• Development made to land – Anything built on the plot and is immovable such as buildings etc. 

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How to pay municipal tax online on the Bajaj Finserv App?

1. Download the ‘Bajaj Finserv: UPI, Pay, Loans’ application from the Play Store or App Store.  
2. Log in with your official contact number.
3. On the homepage, under the Bills & Recharges section, click on View All.
4. Go to the bottom, and you’ll see ‘Municipal Taxes’.
5. Fill in the required details.

Gone are the days when people used to travel to deposit this tax. With the onset of digitization in recent years which has led to a smartphone in every hand, such tasks are just a single click away.