HOUSE TAX CALCULATION FOR AHILYANAGAR MAHA NAGAR PALIKA
Saturday Brainstorming Thought (303) 29/11/2025
By:-Er. Avinash Kulkarni
9822011051
Chartered Engineer, Govt Regd Valuer, IBBI Regd Valuer,
Rera Certified Consultant, Black Money Act Regd Valuer
House tax (or property tax) calculation is an analysis based on the assessed value of a property and the local maha nagar palika specific formula
The exact method and rate vary significantly by location (city/state)
Primary Calculation Methods (India)
Municipal corporations in India primarily use one of three systems to determine property’s value for taxation
1) Capital Value System (CVS)
The tax is a percentage of the property’s market value, which is determined by the local governments “ready reckoner” rates and updated periodically
This system is followed in Mumbai and Pune
Property Tax = Market Value of Property X Applicable Tax Rate (%)
2) Unit Area Value (UAV) System
Tax is calculated based on a fixed per-unit price of the built-up area
This price considers the property’s location, usage (residential/commercial) and land value
This system is used in cities like Delhi, Bengluru and Kolkata
Property Tax = Base Value (per sft) X Built-up area X Age factor X other factors
3) Annual Rental Value ( ARV) System
The tax is levied on the potential annual rent the property could reasonably fetch if rent out
This estimated rental value is decided by Mahanagarpalika, not necessarily the actual rent received
This approach is used in Chennai and parts of Hyderabad
Key factors influencing the Calculation of Property Tax
Regardless of the method used, several common factors influence the final tax amount
1) Location
Properties in urban, prime or well developed areas generally attract higher tax rates
2) Property Type and Usage
Commercial or Industrial properties are typically taxed at a higher tax rate than residential, self occupied homes
3) Size
Larger built-up areas usually result in higher taxes
4) Age of the property
Older properties may receive depreciation benefits or be assessed at a lower value compared to newer constructions
5) Construction Type
The quality of construction (RCC/Load Bearing) can impact the valuation factor
6) Owners Profile
Many local bodies offer rebates or exemptions for senior citizens, women property owners, ex-servicemen or people with disabilities
Analyze of Property Tax
1) Identify the Assessed Value
Obtain the official assessed value of your property from your local municipal corporations website or previous tax bills
2) Determine the Local Tax Rate Formula
Check your Mahanagarpalika’s official website for the specific formula and the current applicable tax rate for your property’s category, zone and usage
3) Apply Formula and Factor in Exemptions
Use the municipal calculator or formula, factoring in any eligible exemptions or deductions (eg senior citizen rebates)
4) Review and Verify
Carefully review the tax notice
If you believe the assessment is incorrect, you have the right to file an appeal with the local municipal authorities, providing supporting documents
Ahilyanagar Mahanagarpalika Zones for Property Tax Purpose
1) Zone Number 1
Ahilyanagar Shahar Gaothan and Adjacent Property
2) Zone Number 2
Savedi, Sarasnagar etc
3) Zone Number 3
Kedgaon, Mukundnagar
4) Zone Number 4
Burudgaon, Bolhegaon, Nagapur, Nalegaon Shivar
5) Zone Number 5
Declared and Undeclared Zopadpatti area
6) For Zone Number 3 & 4 : Storage for agricultural equipments & Animal Shed – Rent – Rs 1/Sqm/Month
Hotel & Lodging
Based on Amenities provided
1) Shreni A
A) Cement concrete Building
B) Lift
C) Decorative Tiles
D) Furniture
E) Reception Hall
F) TV, Phone, AC
G) Attached Toilet
H) Suits
I) Londry, Pantry facility
Shreni B
A) Cement Concrete Building
B) Load Bearing
C) Seperate Rooms
D) Some rooms AC
E) Londry, Pantry facility
Shreni V
A) Hotels & Lodges not having above mentioned facilities
Monthly Rent fixed by Ahilyanagar Mahanagarpalika
1) Shreni A
Luxurious rooms, lift, suits, Decorative Tiles
Rs 60/Months
2) Shreni V
TV, Telephone facilities
Rs 50/Month
3) Shreni C
Hotels & lodges with above facilities are not available
Rent – As per zones – Non Residential
For Shreni A & B, Rent for room area and for other area as per zone location
Hospital
1) Shreni A
Luxurious rooms, lift, Suit, Decorative Tiles
Rs 30/Month
2) Shreni B
TV, Telephone facility
Rs 25/Month
3) Shreni C
Above mentioned facilities are not available
Rent as per zone location for non residential
For Shrenii A & B, Rent for room area and for other area as per zone location
Mangal Karyalay, Cinema Theatre, VDO Hall
For RCC, Load Bearing
Zone 1
Rs 25/Month
Zone 2
Rs 23/Month
Zone 3
Rs 20/Month
Zone 4
Rs 15/Month
Zone 5
Nil
For T-Angle, Patra, Khan – Dande Building
Zone 1
Rs 20/Month
Zone 2
Rs 18/Month
Zone 3
Rs 15/Month
Zone 4
Rs 12/Month
Zone 5
Nil
For Commercial use space
Zone 1
Rs 10/Month
Zone 2
Rs 10/Month
Zone 3
Rs 8/Month
Zone 4
Rs 6/Month
Zone 5
Nil
Petrol Pump
For RCC, Load Bearing, Patra Building
Zone 1
Rs 30/Month
Zone 2
Rs 28/Month
Zone 3
Rs 25/Month
Zone 4
Rs 20/Month
For Commercial use for Open Spaces
Zone 1
Rs 17/Sqm
Zone 2
Rs 17/Sqm
Zone 3
Rs 15/Sqm
Zone 4
Rs 14/Sqm
For hotel, lodging, hospital, Mangal Karyalay, Cinema Theatre, VDO Hall, petrol pump
If Age is more than 10 years
10% Discount on monthly rent
If Age more than 40 years
30% Discount on monthly rent
Property Tax percentage on Reatable Value in Ahilyanagar
The property tax on the reatable value for properties within the Ahilyanagar Mahanagarpalika area is 27%
This 27% rate applies to both residential and commercial properties
The property tax is calculated based on the annual rent at which the building can reasonably be expected to be let, minus a 10% statutory deduction for repairs, to determine the reatable value
Property Tax exemptions in Ahilyanagar
1) Buildings and lands used for religious purposes are fully exempted
2) Retired Soldiers (and their widow/widower) are exempt for the building and land they can occupy as residence
3) Properties withvan area of less than or equal to 25 Sqm have a fixed annual tax of Rs 250
4) Houses under poverty alleviation schemes, kutcha houses, old houses and traditional huts occupied by poor households also have a fixed annual tax of Rs 250
You can pay your property tax online through the official Ahilyanagar Mahanagarpalika Website
Property Tax Calculation
Property tax in Ahilyanagar is calculated based on a capital value system, not directly on a percentage of the reatable value
The calculation takes into account the annual rental amount, property’s carpet area and other factors to determine the annual house tax
1) Reatable Value Calculation
The reatable value is determined according to section 154 of the Maharashtra Municipal Corporations (MMC) Act
This is done by applying a 10% reduction for repairs to the property’s annual rent
Since many properties are self occupied, the municipal corporation assigns residential letting rates for different pockets of the city to determine a notional annual rent
2) Annual Rent Calculation
Property tax is calculated at 20% of the annual rental value
3) Final Tax Amount
The higher of these two calculation methods is used to determine the final property tax amount
Late payment penalty for property tax in Ahilyanagar
2% interest is charged on the outstanding property tax amount for each month, or part of a month, that the payment is delayed past the due date
Section 154 of MMC Act
1) Reatable value for tax assessment
Section 154(1) details how the assessing authority determines the reatable value for municipal taxation, particularly for properties not subject to Rent Control Act provisions
It considers factors such as
Prevalent rents in the area
Advantages and Disadvantages of the property, including its situation and nature
Other features affecting it’s value
2) Revision of Capital Value
Section 154(1C) mandates that the capital value of the properties must be revised every five years
This revision is crucial for the calculation of property taxes
Core Features of House Property Tax
1) Levied by Local Authorities
Property tax is imposed by local municipal corporations, municipalities or panchayats, and the rates and rules can vary significantly from one city or state to another
2) Funding Local Services
The revenue generated is a primary source of funding for local civik amenities and infrastructure such as roads, sanitation, water supply, schools and public health services
3) Tax on Ownership
The tax liability rests onwith the property owner and not on tenants
4) Ad-Valorem Nature
The tax amount is generally Ad-Valorem, meaning it is based on a percentage of the property’s assessed value
Property Tax Additions
1) Property Tax
2) Road Tax
3) Sewage Tax
4) Sewage Surcharge Tax
5) Water Benefit Tax
6) Solid Waste Tax
7) Tree Tax
8) Pani Patti
9) Education Tax
10) Fire Fighting Tax
