Paying Property Tax as a Senior Citizen? Here’s How You Can Avail Benefits

By Lodha

Retirement is often deemed a golden period when one can finally take a back seat from the workforce and relax. However, managing your finances effectively is key to making the most of your retirement. As a senior citizen, your financial responsibilities include plenty of tasks, from streamlining your savings and handling daily expenses to investing. One such financial responsibility is paying taxes annually. Having a home of your own can make retirement a breeze - you do not have to worry about rent, nor do you have to save up to purchase the property. Although you do have to pay property taxes. Thankfully, senior citizens can avail various benefits when paying property taxes. Here’s a complete breakup of everything you need to know about property tax as a senior citizen.

Can Senior Citizens Receive Benefits on Property Tax?

In India, senior citizens can avail of a host of welfare policies and initiatives, including exemptions and concessions on property tax. Several states and municipalities provide such benefits to reduce the financial burden for senior citizens, allowing them to comfortably live in their own homes. Some of the key benefits offered are:

Tax Rebates: Tax rebates are refunds offered to taxpayers, traditionally when they have overpaid their taxes. However, the Indian Government also offers rebates to certain sections of society to encourage savings and investments. In a similar vein, senior citizens in India can receive a tax rebate of 10-30% on property tax.

Exemptions: Certain jurisdictions in India also allow for complete property tax exemptions for senior citizens. However, they must meet specific criteria as laid out by the authorities.

Deferred Payments: Senior citizens are also allowed a break in terms of deadlines. They can defer tax payments until the property in question is sold or transferred.

What are the Eligibility Criteria for Availing of these Benefits?

To avail the benefits listed above, senior citizens must check what is being offered in the state or municipality where they live. Additionally, they must meet the following criteria:

• They must be 60 years or older. Certain states may also set a higher age limit of 65 years.
• They must own the property in question, either solo or jointly.
• The property in question should be their primary residence and not reserved for investment or commercial use.

How Can a Senior Citizen Apply for These Benefits?

While the exact procedure for applying for benefits will vary from state to state, in general, the process is as follows:

• Make sure you meet the eligibility criteria listed.
• Gather the requisite documents.
• Acquire the exemption application form from a local municipal office or official website.
• Fill out the form accurately and submit it with the required documents.

While applying for property tax exemptions, senior citizens must provide documents like:

• Proof of Age, such as an Aadhaar Card, PAN Card, or Passport.
• Documents proving property ownership, such as sale deeds, property tax receipts, or ownership certificates.
• Proof of Residence such as utility bills, voter ID, or other similar documents.

How Can Senior Citizens Make the Most of Property Tax Benefits?

• Stay informed: As a senior citizen, it is important to keep up with the news and municipal offices for updates on property tax benefits.
• Professional advice: Senior citizens can also consult with experienced advisors to thoroughly understand the benefits available.
• Combine benefits: Wherever possible, combine senior citizen benefits with other perks to maximise savings.

What Kind of Property Tax Benefits are Available to Senior Citizens in Mumbai?

If you are a senior citizen, or planning for retirement, in Mumbai, here are the details related to property tax benefits you can avail of:

• Rebates: Up to 30% of rebate on property tax
• Eligibility: Must be more than 60 years old with the primary residence in their name.
• Application: Involves submitting proof of age, ownership, and residency to the local municipal corporation.

Plan for retirement ahead of time by investing in property in Mumbai. Whether you want to purchase a luxury home or a comfortable apartment, Lodha caters to every need. From Lodha Park in Worli to Lodha Woods in Kandivali, our residential projects are impeccably built and packed with a host of world-class amenities.

Invest in Lodha and a truly golden retirement.