No Payment of Property Tax


“No payment of property tax by the Builder” is just because of the wrong intention of the Builder where he just wants to escape his liability and this wrongful act is frequently occurring in the market because buyers are not aware of who is liable for the Payment? Just to keep yourself aware we are here for you with the detailed analysis:

a)   What is Property Tax?

  • Taxes are the prime source of revenue for the Government.
  • Property tax is levied on the property as property is considered as an asset so tax is leviable on them too.
  • Tax is collected annually and it is to be paid to the Government or Municipal Corporation.

b)   Why it is mandatory to pay Property Tax and why the government is strict for the collection thereof?

  • Property tax is enforceable by law to generate money for the public purposes so there is no point of evading it.
  • Property taxes are necessary for the maintenance of Infrastructure like repairing, building schools or other similar services to the government or local authorities are very strict in the collection of the same.

c)   Whose duty is it to pay the property tax, builder or buyer?

  • The builder must pay all the taxes including property tax until the property is conveyed to the Buyer.
  • Builder cannot transfer the liability to pay the taxes to the Buyer.
  • If a builder wants to get rid of from this duty, then he shall transfer the physical possession to the Buyer.

d)   Remedies under RERA Act, 2016:

RERA Act, 2016 says builders are obligated to pay all kind of taxes which includes property tax too and builder shall pay all the payment of property taxes in until he transfers the physical possession of the flat.


After all the discussion we can arrive at the outcome that the payment of the property tax depends on the possession of the property. It means even if the buyer receives any dues letter from the local authority then he is only liable if he has got the physical possession of the property from the builder.


Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.


  1. Our case is of redevelopment. Builder has received OC and hand over the passion to flat owners, but it’s more than three years now since development started, BCC is not received , from Govt. Authorities, as some work is still pending, so Handing over the Building to Society is not yet Done. in this case who is liable to pay the property Tax, flat owners or Builder?

  2. If conveyance of the property is not done, till then builder is liable to make payment of property taxes.

  3. Hi, in my case the builder received the OC in Jan 2020 but he handed over flats only in March 2021.
    Now he is asking me to pay him the property tax from Jan 2020 to March 2021. Is he justified in asking me to pay the property tax for the period when I was nor even given possession of the flat?
    I have already paid this amount to the builder and I have asked for a TMC receipt which he is not giving to me.
    What action can I take against the builder?
    Can this be registered as a case of fraud and cheating with local police against the builder?

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