Madhya Pradesh Property Tax

Property tax is a levy imposed by the Government that the property owner is liable to pay on his/her real or personal property. The concerned governing authority of the jurisdiction where the property is located assesses the value of the property and levies the tax. The types of properties taxed and the property tax rates differ by jurisdiction. The Revenue section of the Municipal body is responsible for the administration of the property taxation for the respective urban local bodies. It is important to pay the property tax on time to avail of tax benefits and avoid legal hassles. In this article, we look at the various aspects of Madhya Pradesh property tax in detail.

Purpose

Property tax is one of the main sources of revenue for Urban Local Bodies (ULB) in Madhya Pradesh. The local governing body assesses the property and collects the property tax. The collected taxes are utilized for jurisdictional services, including education, library construction, sewer improvements, road and highway constructions, repairing roads, and fire service. Such funds significantly benefit the concerned jurisdiction.

The Madhya Pradesh Municipal Corporation Act, 1956

Section 135 under the Madhya Pradesh Municipal Corporation Act, 1956 deals with the imposition of property tax, including provisions for the assessment method of lands and buildings and the collection of property tax. The act specifies the properties liable for property tax, the tax rates, and properties exempted from the levy.

Properties Liable for Madhya Pradesh Property Tax

All residential and commercial (non-residential) properties within the limits of urban local bodies in Madhya Pradesh are assessed for tax. Based on such assessments, taxes are levied on property owners. However, residential buildings with an Annual Rental Value below Rs.6000 in municipalities with a population of less than one lakh are exempted from property tax.

Information about new constructions, existing structures, and improvements must be provided to the Town Planning Department to adjust tax assessments accordingly.

Property Tax Components

According to section 135 of the Madhya Pradesh Municipal Corporation Act, the council determines the tax levied on all buildings and lands within municipal limits, which includes the following components:

1. Water and drainage tax
2. Scavenging tax
3. Lighting tax
4. General purpose tax

Responsible Persons

As per the act, the following personnel are responsible for paying the Madhya Pradesh Property Tax:

1. The owner or joint owners
2. The lessor - if the land or building is leased
3. The superior lessor - if the land or building is sub-leased
4. If the property is not let out, the person with the right to let is responsible for paying the tax

If these individuals fail to pay the tax, the occupier of the building will be charged.

Properties Exempted from Tax

Under section 135, the Madhya Pradesh property tax is not levied on the following properties:

• Buildings and lands owned by the Union Government, State Government, or the Corporation, provided they are not leased or rented out.
• Agricultural land and buildings other than residing houses.
• Buildings and lands used solely for educational purposes, without any rental income.
• Properties used exclusively for public worship, charity (with corporation approval), public burial, or as cremation grounds.
• Property owned by widows, orphans, minors, or those who are physically or mentally disabled, subject to specific value limits.
• Property whose rental income is exclusively for public charitable or religious purposes.
• One residence owned by handicapped employees of the Municipal Corporation of Madhya Pradesh.
• Property owned by recognized political parties in the state.
• Residential property owned by gallantry award winners or civilians with government-awarded bravery honors.

Discount on Property Tax

Under the Madhya Pradesh Municipal Corporation Act, 1956, a rebate of 6.25% is granted to taxpayers making timely payments before the due date.

Payment of Madhya Pradesh Property Tax

To make the property tax payment online:

1. Visit the official e-Nagar Palika of Madhya Pradesh site.
2. Under the citizen services tab, select ‘Property Tax Citizen Login’.
3. Provide the necessary details such as owner name, ownership category, property use, and address to calculate tax online.
4. Enter additional required details and proceed to make the payment.
5. To verify payment status before payment, navigate to ‘View Demand/Payment Status’ under property tax services and check the assessment, demand, and payment details.
6. Print the receipt after payment is completed.

If you are interested in understanding more about related government obligations, you might find it useful to learn about Import Export Code registration in Uttar Pradesh or explore details on GST Registration in Ajmer.

Penalty

The Madhya Pradesh Property tax is calculated and collected semi-annually. Failing to pay property tax by the end of June for the first half-year and by the end of December for the second half-year will result in simple interest at the rate of two percent per month being levied. A penalty also applies to unauthorized constructions.

To ensure compliance and maintain seamless business operations, corporates may consider exploring GSTR-11 filing services for fulfilling their indirect tax obligations.