Tamil Nadu is the seventh largest state in India by area, and the tenth most populated state in the country. With a population of over 72 million people, The state is divided into 38 districts and has a large number of properties that all require payment of property taxes.
As the average Tamil Nadu resident is increasingly looking for convenience in their day-to-day tasks, the state government has taken steps to make online payments for property taxes a reality. Effective from 2020, the Tamil Nadu state government introduced a property tax online payment system to streamline the payment process for property tax in the state – making payments easier, faster and more convenient for property owners.
Land Tax in Tamil Nadu
The land tax in Tamil Nadu is a mandatory tax paid by landowners, residents or commercial property owners within the state. It is a tax levied on all land parcels that are not covered under the jurisdiction of local bodies like the municipality, panchayat, or corporations.
The land tax is calculated based on the value of the land, which is determined by the state government. The amount payable in land tax is proportionate to the value of the property in question.
Historically, Property tax Tamil Nadu has been arduous, with the burden of physically going to tax collection centers and spending several hours in queues. The process could be inconvenient and time-consuming and could take days, especially for people who live in remote areas.
How to Pay Property Tax Tamil Nadu Online
The new online system for payment of property tax in Tamil Nadu is a technology-driven solution that the government has put in place to address the issue of convenience for taxpayers.
By logging into the Tamil Nadu Municipal Administration and Water Supply Department website, taxpayers can find all the details of their properties, their location, and the amount of tax that is due. All they need to do is enter their property tax identification number and proceed to pay the taxes using their preferred payment method. Currently, taxpayers can pay through credit or debit cards or online banking.
Vacant Land Tax in Tamil Nadu
The Tamil Nadu state government has revised its policies on the vacant land tax so that it is now applied to properties that have been left uninhabited or undeveloped for three years or more after the property has been registered. In the past, properties that had remained unused for only one year were liable to the tax.
This move by the government is aimed at ensuring that property owners either make use of their land or sell it to someone who will develop it or use it for its intended purpose.
By not building or developing on the land, property owners have been depriving their communities of useful and beneficial infrastructure that could have been built on such properties. The increased focus on the three-year period allows sufficient time for property owners to utilize their property effectively or sell it for development, and if necessary, to pay the vacant land tax.
Land Loan Against Property
When property owners are facing financial challenges, instead of using their personal loans, they may opt to use the property itself as collateral and request a land loan against the property.
If a property owner approaches a bank or financial services provider for a land loan against the property, he or she must have all taxes up-to-date. Payment of taxes shows that the owner is responsible and accountable, and assures the financial service provider that the property is free from legal issues.
Property owners who are unable to pay their land tax and who, conversely, require loans against the property, can experience difficulty with securing those loans if taxes are unpaid.
The introduction of online payment of property taxes in Tamil Nadu is a significant move by the state government. It has allowed taxpayers to pay their taxes without any undue stress and uncertainty, and has enabled tax authorities to handle tax collections more efficiently.
Property owners and residents in the state should be aware of the various taxes and regulations applying to their properties and ensure that they keep their payments up-to-date. Fines and legal liabilities resulting from failure to pay taxes can be very severe and can lead to unnecessary legal battles that could take years to resolve. It’s essential to stay informed about obligations such as the NMC property tax to avoid any potential penalties and ensure compliance with the law.
Through the property tax online system, the Tamil Nadu government has made it easy for its citizens and non-residents to pay their taxes at their convenience and without undue stress. Property owners should take advantage of this opportunity and ensure that they keep their taxes up-to-date to avoid penalties and legal implications down the road. Read more blogs on our websit.