As is true of all cities, property owners in the Uttar Pradesh capital Lucknow, have to pay an annual tax as their property ownership liability. Apart from paying this tax at the designated office, citizens of Lucknow can also make this payment online. In this article, we discuss the various aspects of property tax in Lucknow.
What is property tax?
While buyers have to pay a one-time amount to become the owner of a property, they have to consistently pay smaller amounts in the form of property tax, to maintain their ownership over this asset. Property tax is, hence, a direct tax imposed on property ownership.
Property tax payment in Lucknow online
Residents of Lucknow do not have to visit the city’s municipal office to pay their property tax, thanks to the presence of an online facility. The Lucknow Nagar Nigam or the Lucknow Municipal Corporation (LMC) has been collecting house tax online, since 2005. Official records indicate that there are around 5.6 lakh taxable properties in the Uttar Pradesh capital. The LMC property tax payment website has a user-friendly interface, where conducting business is easy and hassle-free.
Lucknow Nagar Nigam (LMC) property tax rate
|General tax: 15% of the annual value of the property.|
|Water tax: 12.5% of the annual value of the property.|
|Sewer tax: 3% of the annual value of the property.|
Note: Property tax is a percentage of the annual rental value of the property.
In this article, we examine the process to pay your house tax online in Lucknow and how a first-time user can register, to pay the online property tax.
How to check your house ID on LMC website
Users who do not know their house ID have to log in to the official LMC website (https://lmc.up.nic.in/internet/searchnewhouseid.aspx) and click on the ‘Know your new house ID’ tab at the top of the page. Enter specific details on the page that now appears to get the new house ID.
A similar page opens on clicking the ‘Know your house tax’ tab. Key in the information to find out your house tax amount.
How to register on Lucknow Municipal Corporation portal?
For successful online payment, the user has to first register himself and his house.
How to register your mobile number
To register your mobile number, log on to the LMC website and click on the ‘Register Your Mobile’ tab among the options.
Provide your mobile number along with your new house ID, to generate an OTP and proceed.
How to register your house?
Step 1: To register your house, log on to the LMC website and click on the ‘Register You House’ tab among the options given on top.
Step 2: Enter your mobile number, new house ID, etc. and submit.
Pay your house tax online – Lucknow Nagar Nigam
To pay your house tax, log on to the LMC website and click on ‘Pay your house tax’ tab.
Enter the new house ID, password, security code, etc., to proceed. The new page that appears, displays your property tax and payment options.
How to find out property tax rate in Lucknow
On the LMC website, click on the option ‘Monthly rates for AV calculation’. This leads you to a notification that mentions monthly rates for various wards in the city in per sq ft values.
For calculation of the property tax, the following factors are considered:
In case you misreport your house tax liability over self-assessment, the LMC could impose a penalty, based on the area of the property.
How to pay Lucknow house tax offline?
Property tax can be paid offline by visiting the Lucknow Municipal Corporation office at the Triloknath Road, Lalbagh, Lucknow.
Nagar Nigam Lucknow house tax rebate
Based on the years of occupancy, a tax payer in Lucknow can enjoy certain rebates on his/her property tax liability.
20% rebate: If you have been occupying the property for 10 years.
32.5% rebate: If you have been occupying the property for 11-20 years.
40% rebate: If you have been occupying the property for more than 20 years.
The Lucknow-One app
Relaunched by the LMC in October 2020, the Lucknow-One app helps citizens to avail of services, including quick payment options for property tax and vehicle registration. Apart from offering assistance for any sort of emergency, the app also helps one to locate nearby services through the ‘Find What’s Near Me’ option. One can also register complaints related to roads, sanitation, street lighting, drinking water, etc., using the Lucknow-One app.
LMC property tax collection falls in 2020-21
As against the earlier target of Rs 410 crores, the LMC has been able to collect only Rs 292 crores as property tax for the year in 2020-21 amid a drop in the income generating capacity of the city’s residents in the aftermath of the Coronavirus pandemic. Owing to the relaxations offered by the civic body to residents, keeping in view of the economic situation, the LMC has revised its total property collection target to Rs 300 crores.
Lucknow Municipal Corporation listed on the BSE
The LMC became the ninth such body in India to do so, after it listed its Rs-200 crore municipal bonds issue on the Bombay Stock Exchange (BSE) on December 2, 2020. The money raised through the bond issue is proposed to be invested in a water supply projects being implemented under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme and a housing project and other infrastructure schemes. The bonds have a 10-year tenure and offer 8.5% interest per annum.
With its bond issue on November 13, 2020, the LMC also became the first municipal body in north India to have raised municipal bonds and joined the league of municipal bodies of Pune, Indore, Bhopal, Ahmedabad and Hyderabad.
LMC extends property tax payment date till January 31, 2021
In a move that is likely to benefit nearly three lakh taxpayers, the Lucknow Municipal Corporation (LMC) has extended the last date for property tax payment from December 31, 2020, to January 31, 2021. Citizens who pay their property tax dues during this period, will also be able to avail of a 5% rebate on their overall tax liability.
Note here that there are over six lakh tax payers in Lucknow, of which half had not paid their dues till December 2020. The total dues on these properties is around Rs 400 crores.
You can either pay the property tax at the cash counters of the LMC or visit branches of banks like HDFC or Axis Bank. You could also visit the nearest of the 72 e-Suvidha Kendras that assist people in property tax and other payments. You could also make the payment online or pay your house tax using the Lucknow-One app.
The LMC may also seize the bank accounts of defaulters whose property tax dues exceed over Rs 1 lakh, as per a decision that the municipal body took in August 2020, as it failed to meet property tax collection targets for nearly 12 years, in spite of offering various concessions.
The LMC has collected Rs 174.08 crores as property tax from April to December 2020, as against over Rs 172 crores in the same period of 2019. The LMC had set the target of Rs 410 crores as property tax collection for FY2021-22.
How to register house in Lucknow Nagar Nigam?
To register your house in Lucknow Nagar Nigam, visit the url: https://lmc.up.nic.in/internet/newregister.aspx
What is house ID in Lucknow Nagar Nigam?
To know the house ID, log in to the LMC and click on ‘Know your new house ID’. Enter the necessary details, to get the new house ID.