Property Tax Punjab: Tax Rates, Rebate, How To Pay, And Latest Updates

Table of Content:

1. Property Tax Punjab: Recent Updates​
2. Municipal Categories Under Property Tax Punjab
3. MSEVA Punjab Property Tax Rates
4. MSEVA Punjab Property Tax On Residential Properties
5. MSEVA Property Tax Punjab On Commercial Properties
6. The formula of The Property Tax Punjab For Residential Areas
7. How To Pay Property Tax Punjab Online?
8. How To Pay Tax Using mseva Punjab Property Tax Portal?
9. How To Pay Property Tax Punjab Offline?
10. Exemptions On The Property Tax Punjab

Punjab Property Tax is an essential source of revenue for the Punjab government for the socio-economic development of the state. Every year, property owners in Punjab are obligated to pay property tax online or offline. The word property includes all properties, ranging from self-owned residential to commercial premises. If you are planning to buy a property in Punjab or you are a property owner, then this comprehensive guide on property tax Punjab will introduce you to the recent updates, property tax on residential and commercial properties, how to apply for property tax in Punjab online and offline, and much more. Without further delay, let’s dive into the blog.

Property Tax Punjab: Recent Updates

As per the recent updates on the property tax Amritsar, property owners in Amritsar can avail a 30% rebate by paying the property tax before 30th September 2023. Similarly, the property taxpayers of Mohali can avail of a 10% rebate on making the tax payment before 30th September 2023.

Municipal Categories Under Property Tax Punjab

For the collection of property tax in Punjab, the municipalities are divided into three categories. Refer to the table below to know which municipal category you belong to. 

MSEVA Punjab Property Tax Rates

The Government of Punjab has recently reduced the property tax rates. Keep reading to learn about the revised rates for different property types.

• The property rate for residential properties has been reduced from 15% to 10%.

• Property tax Punjab for rented residential properties is lowered from 10% to 7.5%. 

• Self-occupied houses measuring up to 50 square yards, the annual property tax Punjab is Rs. 50/-. It is Rs 150/- per year for houses measuring between 50 to 100 square yards.

• Property tax Punjab for self-occupied houses measuring between 100 and 500 square yards is 0.5 percent, and 1% for self-occupied houses measuring more than 500 square yards.
  

MSEVA Punjab Property Tax On Residential Properties

In Punjab, residential properties above 125 sq yards and flats measuring 50 sq yards and above are obligated to pay property tax Punjab. Also, property taxes differ from one municipal category to another.

• For residential properties under category A, Rs. 2 is charged per sq yards.

• Properties under category B are charged a property rate tax of Rs. 1-2 per sq yards 

• The tax rate ranges from 50 paise to Rs 1 per sq yards for residential properties that fall within the ambit of municipal category C. 

MSEVA Property Tax Punjab On Commercial Properties

Like residential properties, commercial properties must pay property tax in Punjab annually. The property tax rates differ across areas of commercial properties and municipal categories as well.
 

1. The property tax rates for commercial properties with an area of up to 100 square yards differ from one category to another. Keep reading to know the rates: 

• The property tax rate for commercial properties under category A is Rs. 1.76 per sq yards. 

• The tax rate for commercial properties in category B ranges from Rs. 1.5 to 3 per sq yards. 

• Property tax Punjab for category C’s commercial properties ranges from Rs. 1-2 per sq yards.
  
  

2. For commercial properties with an area of 101 to 1000 sq units, the following are the property tax rates 

• Property tax Punjab ranges from Rs. 2 to Rs. 5 per sq yards for commercial properties under category A.

• The property tax rate varies from Rs. 2 to Rs .4 per sq yards for commercial properties under Category B 

• Rs 1-2 per sq yards property tax Punjab is applicable on commercial properties under Municipal Category C
  
  

3. Under Property Tax Punjab, commercial properties with an area above 1001 square units are charged the following tax rates:

• Property tax rates for commercial properties under municipal category A range from Rs. 3 to 6 per sq yards.

• Rs. 2.5-5 per sq yards is the property tax rate for commercial properties under Category B

• Property tax Punjab ranges from Rs. 1.5 to 3 per sq yards for commercial properties that fall in Category C

The formula of The Property Tax Punjab For Residential Areas

To calculate the property tax Punjab, the following formula is used:

Property Tax Punjab = Collector Rate of Land + Construction Cost (Rs.500/- per sq. feet) - Depreciation (10% of Construction Cost)

A tax rate of 0.5% is charged on the annual cost. The yearly cost is 5% of the total cost.

For the residential rented property, 7.5% is the annual tax. For the rented commercial and industrial property, 10% annual tax is imposed.

Also Read: Tricks to Save Money on Property Tax Bill

How To Pay Property Tax Punjab Online?

The property owners in Punjab have the option to pay the property Tax Punjab online. By following the below steps, property owners can pay tax online:

Step 1: Visit the Jamabandi Punjab- https://jamabandi.punjab.gov.in/.

Step 2: On the left, locate the Property Tax Register option and click on it.

Step 3: Select the location and then type Property ID/Registration Number

Step 4: Enter the prerequisite details to make the payment of property tax Punjab

Step 5: The challan will be generated for download once the payment is done.

Alternatively, you can use the Mseva portal to pay the property tax in Punjab online. 

How To Pay Tax Using mseva Punjab Property Tax Portal?

To pay Mseva Punjab property tax online, follow the following steps:

Step 1: Visit https://mseva.lgpunjab.gov.in/citizen/.

Step 2: Fill in the required fields to create an account.

Step 3: Login to your account and select the "Assess & Pay" option

Step 4: Enter the essential details like the owner’s name, property ID, and other details. 

Step 5: Use a credit card, debit card, UPI, or net banking to pay the property tax Punjab

Step 6: Once the payment is made, download the receipt.

How To Pay Property Tax Punjab Offline?

In addition to online options, property owners in Punjab can pay property tax offline. Follow the following steps to pay property tax Punjab offline.

Step 1: Visit the nearest Municipal Corporation in your city.

Step 2: Fill out the property tax form with the necessary information.

Step 3: Make the property tax payment using cash/DD/UPI/net banking/credit card/ debit card

Step 4: Make sure to verify the filled details before submitting the property tax form.

Step 5: On the successful payment of the property tax Punjab, the concerned authority will issue you a challan which is proof of the property tax payment.

Exemptions On The Property Tax Punjab

The Government of Punjab gives property tax exemptions to the following establishments and institutions: 

• Exempted Establishments: Nursing homes, religious places, street animal care centers, heritage buildings, cow shelters, ex-servicemen establishments, municipally controlled properties, government hospitals, government universities, schools, community clinics, land for agricultural and horticulture purposes, orphanages, and cow shelters are exempted from paying the property tax Punjab. 

• Nagar Panchayats are exempt from paying the property tax Punjab.

• Disabled people and widows are eligible for a tax refund of Rs. 5000/-

• Landowners with 125 sq yards or less are exempt from paying the property tax Punjab. 

• Owners of properties whose dimensions are 500 sq feet or less are exempt from paying property tax Punjab.

Also Read: Property Tax Guide in India

Final Words On Property Tax Punjab 

The property owners must pay property tax Punjab. The amount collected by the authorities is used to improve the infrastructure and the well-being of the people. Property owners in Punjab can pay the property tax offline and online.