How To manage with TAX
Owning a property and then paying its tax is a very big responsibility. It is very important to know about the tax that is to be paid for that property which you are going to have. Different tax is to be paid on different properties. Even tax vary with the size and the locations of the property. There are four types of property - land, improvement to land, personal property and intangible property. The personal property is called movable man-made objects and improvement to land is called immovable man-made objects. The real state property is said to be the combination of land and improvements.
The tax is a fund that is charged by the governing authority of the zone where the property is located. A property tax is also called millage tax, it is also tax on property that the owner is required to pay.The tax can also be paid to the national government or to the state government, multiple region may charge tax separately for the same property.
First government execute the monetary value of the property, after that the tax is calculated by its standard proportion. Properties are charged different according to its area and zones with different tax rates.Commercial, residential, industrial and real estate properties do vary with their tax rates. Tax is also to be paid in the case of long term lease.
In India property tax is not charged that much, that is why the property is considered as a source of income here. According to the ruling of income tax department, any source of income from the property should be considered as one of the income heads. The rate of property decides about the tax rate of that property. The charged tax is used for the maintenance of civic bodies by municipality corporation.
Taxes are of mainly two types that is specific tax or ad valorem tax.Specific taxes are the fixed amount taxes calculated and based on the number or measurement, but ad valorem taxes are based on the fixed proportion of the value of property. General property taxes are the part of ad valorem tax. These taxes are totally based on property ownership.
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