ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: Property tax is the annual amount paid by a land owner to the local government or the municipal corporation of his area. The property includes all tangible real estate property, his house, office building and the property he has rented to others.

Detailed explanation-2: -On which kind of property is property tax levied? In India, property tax is imposed on real estate, which consists of buildings and lands attached to the premises. Usually, vacant plots of land without any adjacent building do not attract property tax.

Detailed explanation-3: -In simple terms, it is a tax paid by the landowners to the local municipal body or the government. Property tax applies to all types of tangible properties of an individual owner, which includes residential property, attached lands, office spaces, or any other property rented to third parties.

Detailed explanation-4: -Income tax, corporation tax, property tax, inheritance tax and gift tax are examples of direct tax.

Detailed explanation-5: -ad valorem tax, any tax imposed on the basis of the monetary value of the taxed item. Literally the term means “according to value.” Traditionally, most customs and excises had “specific” rates; the tax base was defined in terms of physical units such as gallons, pounds, or individual items.