MANAGEMENT

Detailed explanation-1: -Capital Value System (CVS): The tax is levied as a percentage of the market value of the property. This market value is determined by the government and is based on the locality of the property. The market value is revised and published yearly. Mumbai follows this system.

Detailed explanation-2: -An ad valorem tax (Latin for “according to value") is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT).

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: -A tax based on the value of the property/product is called Ad Valorem Tax.

Detailed explanation-5: -The LTCG Tax is applicable when a particular property is sold after 24 months of buying it. The time period was reduced from 3 years to 2 years in Budget 2017. The rate of LTCG Tax is 20%. This is over and above the regular income tax payable by the seller, on the income earned through salary or business profit.