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Pay your house tax and water tax in one bill

To all the home owners, there is something important coming for you. The house tax and water tax that you are paying right now might come as a single bill in the future. The local government has proposed to merge these two taxes under one bill without changing the present slab.

If you are a home owner, you are already aware about the taxes associated with a house. Property tax, water tax, electricity, municipal taxes such as maintenance and repairs. All these taxes are charged separately from each home owner. But, as per the recent developments, the local government of Kanpur is considering to merge two important taxes – House tax and water tax and bring it under one joint bill.

At present, the house owners pay two separate bills for house tax and water tax. The current house tax is charged at 15% of the annual letting value of their house while the water tax and sewer tax is charged at 12.5% and 4% of the annual letting value of the house. If you have a home in Kanpur, you already know the two local bodies that send you the two bills for respective taxes. They are Kanpur Municipal Corporation (KMC) for house tax and the Jalkal Department for water tax.

The government has already asked the two departments to collect all the data and chalk out a plan to implement this tax merger. As per the recent data, KMC collects a whooping 154 crore as house tax while the Jalkal Department collects 104 crore as water and sewer tax. The government has also directed to make a detailed list of online depositors and offline depositors. The government has also divided the city into 110 wards to ease the process.

So how does the future look like?

As of now if you calculate the total taxes that you pay for a home in Kanpur, it comes up to a total of 31.5 % (15% House Tax + 12.5 % Water Tax + 4% Sewer Tax) of the annual letting value of the house. Now as per the new proposed joint tax, it also remains the same at 31.5 % of the annual letting value of the house. So, the taxes remains exactly the same to what you were paying, it’s just that you get saved from the hassle of paying two separate bills.

 What difference does it make?

Well, not much to be honest. But, it might take your few hours and a little paper work to enroll yourself into this new system. So your two separate bills will become one while the taxes remains the same as per the recent developments of the government. Kindly, check with the local authorities if anything new, a rebate or even a hike might come to surprise you.

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