The Rajasthan government has introduced a new property tax in urban areas of the state, replacing the house tax abolished this year.

According to the notification issued under Section 104 of the Rajasthan Municipality Act, 1959, the tax will be levied on houses, unutilised land except agricultural land and constructed areas in premises under the jurisdiction of all municipal councils and municipalities. The tax will be levied on residential plots of more than 300 square yards, flats measuring over 1,500 square feet and commercial plots of over 1,00 square yards.

Calculation of the tax will be on the basis of the district level commit-tee rate, taking into account the total land and the built-up area. The tax assessment will be done every calendar year. The tax will be applicable to budget hotels, one, two and three star hotels, guest houses and all central government properties used for commercial purpose as well as public sector undertakings, corporations and boards.

News Source: Economic Times
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  • Rules relating to Wealth tax, duty and Capital gains tax

    Hi...pls check out excerpt from this article.

    it mentions 4-5 things that one has to be careful of!

    ""Sandeep Sadh, CEO, Mumbai Property Exchange, identifies four of the biggest villains starring in the property drama.

    Now starring: Capital gains tax (aka Cruelty)!
    Until last year, if you sold your property and invested the sale proceeds in specific bonds issued by the National Bank for Agriculture and Rural Development and the National Housing Bank, you would save capital gains tax on the sale proceeds.

    Even with their lock-in period of 3 years, and minimal returns, they were the hot favourites if you wanted to escape tax.
    But the party soon ended. The Finance Ministry decided to restrict the tax benefit to investments in National Highways Authority of India and Rural Electrification Corporation bonds as well as fixed a ceiling of Rs 6,500 crore (Rs 65 billion).

    With these two avenues of investment filled, the government has no plans to raise the limit or come out with any other viable option.

    If you are congratulating yourself on a Rs 30 lakh (Rs 3 million), profit for a house bought for Rs 50 lakh (Rs 5 million), and then sold it three years later at Rs 80 lakh (Rs 8 million), pause a bit.
    You might stand to lose 22.44 per cent as income tax, ie, nearly Rs 6.75 lakh (Rs 670,000)!

    It is worse if you don't hold on for three years, in which case you will pay 33.66 per cent!"" Read More