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Urban land tax is a tax that you pay as a landowner to the local authorities. You pay this tax to the local revenue department or municipal corporation if you own a piece of land in an urban area as per the regulations.
This taxation system aims to ensure that you as a land owner in an urban area contribute to the upliftment of the city and benefit from it.
The State Government levies land tax or urban land tax in a city or town specifically in an urban area. This taxation applies to commercial and residential properties including vacant land. This is an important revenue source for local bodies as they help fund public infrastructure.
These include the development and maintenance of sewer systems, supporting public transportation infrastructure, improving road networks, and financing other essential public infrastructure projects.
The Tamil Nadu Urban Land (Ceiling and Regulation) Act, 1978 (based on Central Act 34 of 1976), was introduced to impose a limit on vacant land within urban agglomerations.
The primary objective is to prevent the concentration of urban land ownership in the hands of a few individuals. It also seeks to curb speculation and profiteering in land transactions. Ultimately, the Act aims to promote a more equitable distribution of land for the common good.
Some states in India that levy urban land taxes for vacant lands include Andhra Pradesh, Haryana, Tamil Nadu, etc. Here are the details:
Urban Land Tax System in Andhra Pradesh
The municipal corporation of the state determines the vacant land tax rates and the basis of various factors. The Commissioner and Director of Municipal Administration Government of Andhra Pradesh portal informs the applicability of vacant land tax on the land owners.
The portal provides services related to vacant lands such as notice issues to owners, assessment of vacant land tax, issues demand notices, collection of tax, maintenance of records, application receipts for transfer, inspection, process and recording of title transfer fee.
Urban Land Tax System in Haryana
Urban land tax levied in Haryana allows for some exemptions on vacant lands. For residential and commercial vacant lands up to 100 square yards, the taxes are exempted. The same exemption applies to industrial and institutional vacant lands of up to 500 square yards. Here are more details:
The state government has introduced a vacant land tax calculator for landowners in the state. Using this tool, landowners can enter their address and relevant details to access tax rates.
By providing the name of the municipality and area, you can obtain information about various taxes. These include general tax, half-yearly tax, liability cess, basic vacant land tax, location value, and other related details.
Urban Land Tax System in Telangana
In the state, you can pay vacant land tax, calculate the amount, print your receipts, search your vacant land, and check payment status on an e-portal. This eMunicipal Telangana portal helps you to make vacant land tax payments and find records.
To avoid penalties and follow legal compliance, the land owner must pay urban land taxes, if applicable. This is done to avoid legal complications and maintain your rights over the land.
The urban land tax online payment system is available through a website. The e-Sevai Tamil Nadu also has a mobile app you can use to pay land tax being a land owner in the state. To make a land tax payment using the website, here are the steps:
Visit the official website of Tamil Nadu e-Sevai portal on https://www.tnesevai.tn.gov.in/
Click on user login if you already have the login credentials. Otherwise, you can register on the portal using your details
Go to the home page and click on ‘services offered’
You will find a list of services with an individual link and a list of required documents
Look out for land tax payments and follow the instructions provided
If you do not pay your urban land tax on time, you will be liable for late payment charges and penalties. In India, you can be liable for late payment interest charges that can range from 5% to 20%. Depending on the regulations by states, this additional fee is levied above the original principal amount. To avoid such legal and financial consequences, it is necessary to make payments on time.
The owner of the land located in an urban area is liable to pay the urban land tax to the state government.
No, the Tamil Nadu Urban Land Tax Act, 1966, does not apply on land used for agricultural purposes.
The Tamil Nadu Urban Land Tax Act, 1966, was implemented in Chennai City from July 1, 1963. The Act was introduced to levy a tax on urban lands, excluding those used for agricultural purposes.
Urban agricultural land is classified under municipal or state zoning laws for farming within city limits. It is identified through land records, tax receipts, and official notifications. Physical use for cultivation or livestock also indicates its status.
The full form of ULC is Urban Land Ceiling. It generally refers to laws that regulate the ownership and use of urban land to prevent excessive landholding and promote equitable distribution.
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