The annual tax a city or panchayat charges the owner of a building or land. It funds local services, and the receipt is a key document in any sale.
How it works and what to check
Cities use different methods: annual rental value, unit area value or capital value, with rates by zone, use and age of building. Most now let you pay and download receipts online.
Before buying, ask for the latest receipt in the seller's name and check there are no arrears. After buying, get the tax record mutated to your name.
Common questions
Who pays property tax, the owner or the tenant?
The owner is liable, though a lease can make the tenant pay.
Does unpaid property tax pass to the buyer?
Arrears can be recovered from the property, so make sure they are paid before you buy.