Pune Property Tax

Property tax is calculated based on the ready reckoner rates which are used to calculate stamp duty by the revenue department.

Tax = Tax Rate * Capital value

Capital value is calculated as the product of base value, built-up area, usage, building type, age factor and floor factor.

The formula is as below

Capital value = base value * built up area * usage * building type * age factor * floor factor

The property tax can be derived from the online portal. Both PCMC and PMC property rates are available online.

The details to be entered by the assessee for online calculation of tax are

• Location
• Area
• Usage
• Type
• Total plinth area
• Construction year

The property tax can be paid in Cosmos bank or HDFC bank in Pune. A step by step guide is available for payment of tax online.

Visa/ Master debit or credit cards used will attract 1% of the transaction amount charge plus the service tax

For Maestro cards the charges are 1.8% plus service tax

For American Express Cards the charges are 1% plus service tax

For the tax diners card, it is 4% of the transaction amount plus services tax

For prepaid cash cards also, the charges are 4% of the transaction amount plus the service tax.

The website update takes a while and it is suggested not to take a second attempt for this transaction if funds are debited from the taxpayer's account.

Due Dates, Penalties and Rebates

The property tax has to be paid two times a year which is semi-annually. The first half of the year is between 1st April to 30th September wherein the due date for payment is 31st May. The second half of the year is between 1st October to 31st March, and the due date for payment of tax for this half is 31st December.

A penalty of 2% is charged for non-payment of dues by the assessee. The calculation of the penalty will start from 1st June for the first half of the year and from 1st January for the second half of the year.

The rebates provided are as below

For tax paid up to 31st May, a discount of 10% is available on general tax for residential/non-residential and open plots registered as residential properties in case of an annual rateable value of Rs.25,000

In the case of annual rateable property, a discount of 5% is given if the amount is Rs. 25,000 and above

For residential properties that have solar, vermiculture and rainwater harvesting systems, a discount of 10% is available and in case one of the above is available, a discount of 5% is allowed.

The property tax can be paid at any ward offices or PMC sampark offices and Cosmos or HDFC banks which fall under the limit of PMC.

The amount if paid by cheque/demand draft or money order should be addressed to, ‘The Assessor and Collector of Tax Shivaji Nagar Pune 411005’. The tax number and the property number should be mentioned at the back of these instruments.

The PMC and PCMC have seen a drastic increase in the collection of property tax in the fiscal year. The increase is almost up to 10%. The PMC and the PCMC have collected Rs. 1,186 crores and Rs. 683 crores in the recent fiscal years. A survey has suggested that the preferred mode of payment was online. The officials said that around 7300 non-residential properties went through the attachment for the failure to pay dues.

The property tax is to be paid to the municipal corporations for maintaining the civic amenities. The municipal corporations maintain the public resources like infrastructure, roads, buildings and all other public facilities in a state. The municipal corporations have been maintaining the records of property tax for a very long time which has led to the collection and application of revenue for the state governments.

The ready reckoner rate is the minimum rate at which the property will be valued if the property is transferred. Each year the ready reckoner rate is revised in the city and the stamp duty to be collected is decided by the revenue departments. Every city has a different ready reckoner rate and it depends upon the area and locality of the city.

Online Payment of Tax

• Visit the PMC official website and select the NEFT?RTGS or online payment option
• The details of the property are to be entered
• The property owner details and property tax dues are to be updated
• The amount to be paid has to be entered
• The payment gateway such as net banking or any other method should be selected

Offline Payment of Tax

• Property tax can be paid in the ward offices and branches of Cosmos and HDFC banks.
• The cheques/demand drafts/cash can be paid to the office or should be addressed to, ‘The Assessor and collector of tax PMC Pune’

Concessions/ Exemptions

Properties used for worship or as charitable purposes as registered under the charitable institutes are exempt from payment of property tax.

A 50% concession is provided on the general tax to be paid on properties of ex-servicemen or freedom fighters, wives or women.

40% concession is provided to people with a disability of 40% and above.

FAQs