Why is it imperative to pay your residential property tax timely?
Posted: May 01, 2020
As a responsible citizen of a country, it is expected from every individual who owns land or residential property, to pay property tax on time. Unlike the income tax department, which is in charge of ensuring every working individual is paying income tax properly, the respective local or state governments are responsible for making sure that property and landowners are paying property tax timely. As per the actual monetary value of your property, which is evaluated by the local authority of the area where your property or land is located, you need to pay the property tax. You can receive multiple benefits if you pay property tax on time, read on the following to know more.
Key advantages of paying property tax on time
Rebate on tax payment
State governments who know very well that property or landowners would pay tax on time only if discounts are offered to them, only because of it in many states taxpayers get early bird benefits. Depending on the ongoing scheme and state governments, the discount rate varies. Those who do not pay property tax on time; they do not get any such lucrative advantages that individuals who pay tax before due date receive.
People who pay property tax days after the due date get penalised and have to make additional payment as a fine. If you own a plush residential property in a prime location in a city, then you might have to pay a significant amount of money as a late payment penalty along with the due property tax amount. The only way to prevent yourself from paying a late payment penalty is to pay property tax on time.
Receive IT benefits
Purchasing a new residential property or shifting your base enables you to claim deduction on the amount you pay to the income tax department. However, to receive such an income tax benefit, you need to get hold of a NOC from the responsible local authority to validate the new residential property in your name. So, if you do not pay property tax on time, you won’t be able to enjoy IT benefits. Hence, consider making payment of property tax before the due date to receive a deduction on income tax successfully.
Contribute to the country’s development
If you check out Property Forums thoroughly, you will know that the entire amount generated from the property owners is utilized for the development of your country. Respective state governments build schools, hospitals, roads, and many other infrastructures for the public using the money that you and other citizens pay as property tax. From now onwards, do keep in mind that paying property tax is a moral obligation.
If you want to save a considerable amount of money and do not want to get penalised for making a late payment, start paying the property tax from the net time before the due date. You will feel good from the inside when you know that you have executed the duty on time that you should as a responsible citizen of a state and as well as a country.
Fareed is a graduate of computer science engineering, a writer and marketing consultant. he continues to study on Nano technology and its resulting benefits to achieving almost there.