Property Tax: Things You Need to Know When Property Changes Hands

Ah! The joy of buying a home or the pleasure of investing in a plot! How fast that joy can turn into a nightmare given the Indian bureaucratic setup! Buying property is often a long drawn out process. But it’s a process that becomes tedious when you add in all the paperwork that you need to complete.

The property tax record is one of those legal documents that can give you sleepless nights and/or nightmares. When it comes to property documentation, Indian homebuyers might be aware of the more common sales deed or khata certificates, but changing the records in the property tax record is an important step as a property owner. Municipal authorities maintain the property tax record, and if the change in ownership is not updated here, then tax receipts would be generated in the previous owner’s names. While that might seem comforting, non-payment of taxes can lead to hefty fines and a whole host of uncomfortable situations you may not want to be associated with.  

Here is the lowdown on getting your name on this all-important property tax record, especially when you are getting your property transferred from the old owner to yours.

Approval process

Firstly, breathe free. We all shudder at the thought of dealing with government documents, but the process of getting your house tax document all straightened out is actually a simple one provided you have all the necessary documents. For a change in the name, the copy of the following documents will be essential:

  1. Receipt of tax last paid
  2. Attested copy of the sale transaction deed
  3. No Objection Certificate from the associated housing society
  4. Duly filled application form with signatures

Submit these documents to the Commissioner of Revenue and wait for approval after verification, which usually takes around 15 to 30 days.

Mutation of property

Mutation of property is also known as ‘dakhil kharij’ and is a process that enables the government to charge taxes to the new owner. This process helps the property owner to transfer the title ownership after the property is either purchased or inherited.

The mutation procedure includes giving an application along with the non-judicial stamp. The application must have information regarding the property and should be submitted to the area Tehsildar. While the procedure and necessary documentations may vary from state to state, a No Objection Certificate (NOC) is essential for the property area whereas for inherited property, in the case of old property owner’s death, an affidavit of the original death certificate will be necessary.

Taxes are a necessary evil, a great man is supposed to have said. Whether we like it or not, complying with the Indian bureaucracy and its legal structure is likely to save many a headache later on. When it comes to property, a little knowledge is never a dangerous thing.


This article was originally published on dated July 03,2017


  1. If the property is registered, why the registration is not communicated to the local minicipality or corporation, electricity office and local revenue authorities so that the new owner will be finding it easy to have his name recorded in their books,and the job completed by paying the due fees if any. Now a days the registration work is electronically completed, why registration dept. fails to inform the other related offices in which the common man is interested his name is duly record. When the Govt. is interested to know the value of the transactions for income tax dept.actions, they are not interested to help the property buyers and sellers to have the new owners name changed correctly.

  2. My dad bought a house in my mom’s name. something like 90’s. He paid half of it n rest of the amt is said to pay after 8months. We made it writing in promisory note. But after 8months he refused to sel the house for the same amt he told n written in note. He need more amt. But my dad approached court. So finally court gave decree in favour of my dad n the court asked to owner to register the house to my dad. Since den the owner excaped not registering the house. The half amt which my dad has to pay was payed to the court. Now at present my dad expired n my mom registered the house in my name. Til now we r paying the house tax even the name has not changed from the owner. Now the pblm is changing the name of house tax. He rejected has I don’t have the link documents e en thou I ga e the decree certificate which I got from court. We paid the house tax upto date n mutation ceeticates was also given along with Al the documents. Can u suggest me what can I do to get link documents r is it necessary for hanging the house tax

  3. Please be informed that an amount of Rs.20,000 paid is towards obtaining Assessment order for the BBMP office. Which in turn paves way to proceed further paying property tax.

    Is there any requirement to pay money for towards obtaining Assessment order for the BBMP office. Which in turn paves way to proceed further paying property tax.

  4. You made a good point that it’s better to deal with property taxes earlier in order to avoid fines. I’ve only had my new home for less than a year and It’s my first experience as a homeowners since I’ve only been renting prior to this. Perhaps working with a property tax consultant would be wise.

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