Property Tax Vadodara

Updated: 19-01-2024 06:18:16 AM

Property Tax refers to the direct tax which is imposed by the state government on real estate properties such as place of residence, office buildings and also vacant plots for commercial or residential use. Property Tax is Vadodara payable annually at applicable rates on various types of real-estate properties. Under current rules, failure to pay Property Tax is subject to certain penalties, fines and fees that are payable by the assessee.  The revenue collected from property tax payments is utilised for providing various public welfare schemes and civic amenities such as:

• Improving public sanitation facilities
• Constructing buildings and schools
• Repair, construction and maintenance of the roads.
• Salary of local government stuff.
• Maintenance and creation of public parks.

Vadodara Municipal Corporation (VMC) is the governing body which is responsible for collecting  property tax in Vadodara. It was established under the Bombay Provincial Corporation Act, 1949.

How to Pay Property Tax to Vadodara Municipal Corporation (VMC)?

A prerequisite needed for paying property tax dues in Vadodara is the census number and this is assigned by VMC to all real estate properties.

The steps required to pay property tax with the respective online portal offered by Vadodara Municipal Corporation (VMC):

1. Visit the property tax page of VMC.
2. Enter the respective Census number of your property in the required column. The Census number comprises of 16 digits and is a unique identifier for property tax payments in Vadodara.
3. After entering the Census number, click on the search button.
4. If the census number is verified, the assessee will be redirected to the next page which will comprise of owner information details such as Local address, Owner’s full name and Occupant’s name along with Postal address.
5. On the same page, the assessee will be able to access details of their Vadodara property tax dues. They will also be able to make their property tax payment form the E-payment option provided by Vadodara Municipal Corporation.
6. For paying property tax dues to Vadodara Municipal Corporation, click on the Pay button.
7. After clicking on the pay button, census payment information page will be displayed.
8. Here the census number along with the amount payable and payment remarks will be displayed in INR.
9. Click on the Confirm option which will redirect your to online payment portal where you can choose between Visa and MasterCard.
10. After that, the assessee will be asked to provide their respective card details.
11. Select pay now button after the respective card details have been provided.
12. Once the verification has been done, the assessee will be required to provide either an IPIN (Internet Pin) or an OTP (One Time Password) for authentication purposes.
13. If all the details involved are provided legitimately, then the payment will be approved.
14. After completion of payment, the assessee will be redirected to the Vadodara Merchant website. Vadodara Merchant website provides the facility to acquire the property tax payment receipt.
15. The assessee can verify their payment by going to the payment details tab in the owner’s details section.
16. The assessee can also see their Vadodara property tax payment history under the same menu.

Penalties under Vadodara Municipal Corporation (VMC)

The penalty for defaulted payment of property tax under Vadodara Municipal Corporation (VMC) is subject to 18% interest on the unpaid amount plus a 0.50% notice fee and a 25% Education Cess. This penalty on missed/short paid property tax payment in Vadodara is in addition to the original property tax payment due to Vadodara city.

Exemptions under Property Tax Assessment

Property tax exemption in Vadodara is applicable in case of fire, earthquake or any such calamities which may leave the property unoccupied or result in destruction of the property. Thus property tax is levied only while the property is in existence.

However, under existing rules, any property which has not been used for a long time or has been abandoned by the owner will not be considered as exempt from property tax in Vadodara.

Formula used by Vadodara Municipal Corporation (VMC) for Computing Property Tax

The Property Tax Structure-oriented formula (2014-15) which is followed for computing Property Tax is:

Property Tax= R x M x A

Here,

R stands for Annual Rate to be considered under property tax computation

R for residential properties is Rs 16 per square meter per annum

R value for non residential properties is Rs 30 per square meter per annum

M stands for the product of various factors which are to be considered for computation of property tax.

M= Location Factor * Age Factor * Usage Factor * Occupancy Factor

Location Factor:  Location factor depends upon the location aspect in the property tax computation process.

Age Factor: Age factor depends on the duration to be taken into consideration for the year-wise construction of the property under property tax computation process.

Usage Factor: It depends upon to the kind of property to be computed in the process. Either it is a residential property, or it is a non-residential property.

Occupancy Factor: It deals with the person and usage/entity to be considered in the computation process for property tax under Vadodara Municipal Corporation Tax rules.

A stands for the area of the Vadodara property being taxed

Under existing Vadodara property tax computation rules, the Area of the Property (A) equals the whole area of the property excluding the internal as well as external walls.