Property Tax in Ludhiana

Updated: 20-05-2024 09:37:38 AM

Property tax is a significant income source for the state government. The property tax is a direct tax levied annually through civic organisations by order of state government, on real estate properties. Property tax in Ludhiana is levied on corporate buildings, residential buildings, residential colonies, residential areas and also on vacant land earmarked for either commercial or residential purposes. After raising and collecting this tax, the amount is used for providing and maintaining various civic properties.

Property Tax in Ludhiana

The Ludhiana Municipal Corporation levies property tax in Ludhiana city. Earlier there was considerable discrepancy in the number of property owners and the number of those paying property tax in Ludhiana. Thus, in order to boost property tax collection in Ludhiana, the city’s municipal corporation introduced rebates for early taxpayers. If Ludhiana city’s property tax is not paid within the given time limit, the property owner are charged 20% penalty along with 18% penal interest on the outstanding property tax amount. To avoid the penalty and interest on outstanding property tax payments in Ludhiana, property owners need to pay their due property tax before the 31st March every year.

Property Tax Payment Rules in Ludhiana

Property tax payments in Ludhiana are to be made to the Ludhiana Municipal Corporation through either the online or offline mode. Property owners can check their property tax dues online before paying their Ludhiana property tax dues either via the online or the offline route. In Ludhiana property tax is payable annually and the due date is 31st March for the applicable year.   

How to pay Property Tax in Ludhiana?

In order to pay your Property Tax in Ludhiana online, visit the Official Page of the Municipal Corporation of Ludhiana

On this page, you will get the following options:

1. Login
2. Register now
3. Activate your account
4. Forgotten your password?
5. Forgotten your activation code?
6. For digital payment feedback

If you are already registered, you can provide your username and password to log in. If not, you can register to create a new account. You also retrieve your password/activation code in case you have forgotten any detail.

How to calculate Property Tax?

The calculation of property tax in Ludhiana differs in case of residential properties and commercial properties. The following are details regarding how you can calculate your respective property tax:

Computation of residential tax property

• Amount of property tax payable (total amount) = Collector rate of property + construction cost (Rs 500 per sq ft. on a covered area of the property) – Depreciation (10% of construction cost of the property)  
• 5% of total cost will be considered an annual cost and 0.5% tax will be levied on the annual cost.

A total build-up area including open areas such as balconies and garages is called the plinth area. In case of self-occupied residential property, rental of other properties of the same area have to be considered. In the case of rented-out properties, the rental has to be determined through rent agreement.

Ludhiana Property Tax Calculation for Vacant Plots

The formula to evaluate property tax on a vacant plot in Ludhiana whether residential, commercial, industrial, organisational or unproductive

• 5% of collector rate of a vacant plot will be considered an annual cost
• 0.5% tax will be levied on the annual cost for the vacant plot which ranges between 100 to 500 square yards.

A formula to Calculate Property Tax on Rented Properties in Ludhiana

• 7.5% annual tax will be levied on annual cost of residential properties that are rented out.
• 10% annual tax will be levied on annual cost of rented commercial, industrial and organisational property.

5% of the property’s cost is considered to be annual cost by Municipal Corporation of Ludhiana.

Property Tax on Renovated Buildings in Ludhiana

In case you are expanding or modifying your property such as building a new floor or extending a portion of your house, your PTIN (Property Tax Identification Number) and house number assigned by remains the same. Whereas the amount of property tax increases. You can also contact the concerned deputy commissioner at the respective office in case you want to reassess the property tax applicable to you.  

Property Tax Payment (Online)

• Visit to the property tax page of Municipal Corporation of Ludhiana and login using your user name and password.
• Please select the area, assessment code and enter the property tax details as listed on the webpage.
• Proceed to make the Ludhiana property tax payment online through your debit/credit card or via netbanking.
• After completing the successful transaction, an online receipt will be generated. You can save the property tax receipt for future reference.

Property Tax Rebates

• No tax is imposed on buildings and land exclusively used for religious rites and ceremonies, cremation and burial grounds, historical and heritage buildings as notified by central/state government/UNESCO, charitable trusts and organizations exempted from payment of income tax under IT Act, 1961.

• No property tax is levied on parking space used for multi-story buildings, government hospitals and schools and on land used for agricultural purposes in Ludhiana city.

• Ludhiana city offers property tax exemption to freedom fighters receiving a pension from the government and for persons living below the poverty line.
• The Municipal Corporation of Ludhiana has also provided property tax exemption upto Rs. 5,000 annually to widows and persons with disability who are eligible to claim tax benefits under section 80U of the Income Tax Act, 1961.
• Education institution other than government-owned or aided school/colleges are also eligible to claim property tax exemption annually upto 50% of the assessed tax.