Property by law is basically of two types: real and personal. Property tax is levied on both real and personal property. Property tax assessment for both of these is different. Any property be it a real or personal is further categorized according to its use.
Moreover for the Property tax purpose in India real property is taxed in the jurisdiction of its location where as personal property can be taxed according to the jurisdiction or taxpayer's resident. Although there are many other forms of taxes in India like Income Tax, Sales tax etc yet the property tax is the single largest source of revenue for government. The tax paid by you is utilized to make roads, sewer system, maintenance of parks, do developments in infrastructure et al. The owner of the property pays property tax and local bodies (local taxing unit) levy tax on property. The local taxing unit is a legal body of government with elected officers. Property tax rates are determined and these are based on the value of your property.
