Homes and gardens

Property tax: things you need to know when property changes hands

Buying property is often a long drawn out process. But it’s a process that becomes tedious when you add in all the paperwork that you need to complete.   | Photo Credit: K. Ananthan.

Ah! The joy of buying a home or the pleasure of investing in a plot! How fast that joy can turn into a nightmare given the Indian bureaucratic setup! Buying property is often a long drawn out process. But it’s a process that becomes tedious when you add in all the paperwork that you need to complete.

The property tax record is one of those legal documents that can give you sleepless nights and/or nightmares. When it comes to property documentation, Indian homebuyers might be aware of the more common sales deed or khata certificates, but changing the records in the property tax record is an important step as a property owner. Municipal authorities maintain the property tax record, and if the change in ownership is not updated here, then tax receipts would be generated in the previous owner’s names. While that might seem comforting, non-payment of taxes can lead to hefty fines and a whole host of uncomfortable situations you may not want to be associated with.  

Here is the lowdown on getting your name on this all-important property tax record, especially when you are getting your property transferred from the old owner to yours.  

Approval process

Firstly, breathe free. We all shudder at the thought of dealing with government documents, but the process of getting your house tax document all straightened out is actually a simple one provided you have all the necessary documents. For a change in the name, the copy of the following documents will be essential:

    Receipt of tax last paid

    Attested copy of the sale transaction deed

    No Objection Certificate from the associated housing society

    Duly filled application form with signatures 

    Submit these documents to the Commissioner of Revenue and wait for approval after verification, which usually takes around 15 to 30 days.  

Mutation of property

Mutation of property is also known as ‘dakhil kharij’ and is a process that enables the government to charge taxes to the new owner. This process helps the property owner to transfer the title ownership after the property is either purchased or inherited.  

The mutation procedure includes giving an application along with the non-judicial stamp. The application must have information regarding the property and should be submitted to the area Tehsildar. While the procedure and necessary documentations may vary from state to state, a No Objection Certificate (NOC) is essential for the property area whereas for inherited property, in the case of old property owner’s death, an affidavit of the original death certificate will be necessary.

Taxes are a necessary evil, a great man is supposed to have said. Whether we like it or not, complying with the Indian bureaucracy and its legal structure is likely to save many a headache later on. When it comes to property, a little knowledge is never a dangerous thing.   

This article is contributed by RoofandFloor, part of KSL Digital Ventures Pvt. Ltd., from The Hindu Group

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Printable version | Nov 24, 2021 5:01:05 AM |

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