Property tax is nothing but a service tax paid on a property and is the paid by the owner of the property.  According to the rules any Real Estate ie Buildings, Flats, Apartments, Offices, Houses and any other constructed building are liable to the property tax payment. Where as any vacant area of land does not come under the provision of paying the tax. The property tax is the main source of income for any local Municipal Corporation. It is completely responsible for collecting property tax in the state. 

NOIDA also known as New Okhla Industrial Development Area was administered on April 17, 1976. It comes under Delhi National Capital Region. It is located in Uttar Pradesh state in Gautam Budh Nagar District. Noida is among the fastest growing and developing cities of India. 

Service tax is not charged currently on Noida’s Properties. But the government of Uttar Pradesh is planning to implement it in the coming years. Today property owner in Noida don’t pay any property tax. But according to Income tax department of India, Property is regarded as a source of income for Property Owner, Builders, Companies, Agents, Brokers, Consultants and many other engaged in any kind of property affairs. Anything that acts as an income source is liable to tax. It is assumed that property holders in Noida will soon have to bear property tax. This the biggest advantage that Noida property owners have at the moment due to which the properties in NOIDA is priced very low than that in Gurgoan both commercial as well as residential.

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Continuing with Property tax I will try and discuss more about the property tax scenario that is present in the ever growing market of NCR region and to start will discuss the property tax in Gurgaon the aka The Millenium City. In a recent development and giving ease to lakhs of property owners and house possessors in Gurgaon the Municipal Coporation Of Gurgaon (MCG) chose to give 50% refund on property assess in the month of March 2013. Those owning plots measuring 250 sqyd to 300 sqyd can benefit 50% refund and the possessors of plots measuring 350-500 sqyd will be given 40% refund. Those having plots greater than 500 sqyd will get a refund of 30%. As per MCG  the corporation took the venture of bringing down the assessment rate remembering the climbing average cost for basic items in the city.  

Since 2008, when the city form started to exist, more than R600 crore house charge has been owed on the occupants and the MCG has been battling to recoup the cash, which is its major source of income. 

Numerous inhabitants of the new Gurgaon ranges have declined to pay the house expense, stating that their states have been improved by private planners who have as of recently been charging support charges from even managers. 

MCG had previous recommended to connection the installment of property expense with blaze NOCs (no-complaint endorsements) and exchange licences. 

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Property tax in India. Property Tax is the principal source of revenue for Urban Local Bodies in virtually every part of the world. In most cities in India the tax on property base has been considerably eroded by administrative and procedural inadequacies. 

There are 3 main ways in which Property Tax is calculated:

• ARV - Annual Rental Value
• CVS - Capital Value System
• UAS - Unit Area System

Basic Concepts:  Section 22 to 27 of the Income Tax Act deal with taxability of income in respect of house property. The following basic conditions must be satisfied for income to be taxed under this head:-

The property consists of buildings or land adjacent thereto.

The assessee must own property.

The property must not be used for the purpose of business or profession of the assessee. It must be used only for renting out so as to derive rental income.

Therefore any income from a property which is not owned by the assessee will not be treated as ''income from house property'' but as other income and other provisions of the Income Tax Act will apply in this connection.

Deemed Ownerdeal with taxability of income in respect of house property. The following basic conditions must be satisfied for income to be taxed under this head:-

• The property consists of buildings or land adjacent thereto.
• The assessee must own property.
• The property must not be used for the purpose of business or profession of the assessee. It must be used only for renting out so as to derive rental income.

Therefore any income from a property which is not owned by the assessee will not be treated as ''income from house property'' but as other income and other provisions of the Income Tax Act will apply in this connection.

Local municipal authorities and urban local bodies’ major share of revenue come from property tax and property tax in Delhi that helps them to run their department and services. However, in the past few years, mcd property tax has not seen expected growth. Reasons for this have been the inherent adequacies in the tax system due to which a large number of properties fell out of the tax net. It also leads to the inaccurate assessment and inefficient collection. The new PUBLIC-PRIVATE PARTNERSHIP model also known as PPP model, has been an innovative step taken by Property Tax Division of MCD. The basic objective and vision has been to provide residents of Delhi with a citizen-centric service that is efficient, accountable, and transparent. As per the recommendations of Govt. of India, MCD has preferred and selected Unit Area System over Annual Rental Value and Capital Value System for property assessment.