Understanding Property Tax for Indore Property Holders
Property tax is a crucial annual tax levied by the Indore Municipal Corporation (IMC) on all properties within its jurisdiction. The revenue generated from this tax is used to fund and maintain essential civic amenities and infrastructure, such as roads, drainage systems, street lighting, and waste management.

How Property Tax is Calculated in Indore
The IMC uses a specific formula to determine the property tax amount for each property. The calculation is based on the annual value of the property, which is influenced by several key factors:

Plinth Area (PA): This is the total built-up area of the property, including garages, balconies, and any other constructed spaces.

Monthly Rental Value (MRV): This is the current rate of rent per square foot for the property in its specific area. The rate can vary significantly based on location and prevailing market values.

Location/Zone: Properties in prime locations with better amenities have a higher tax rate than those in less developed or suburban areas.

Property Usage: Tax rates for residential properties are generally lower than those for commercial or industrial properties. Properties with a mixed-use (both residential and commercial) are subject to mixed tax rates.

Age of the Property: The depreciation of a property over time is considered in the tax calculation.

For a more convenient and accurate calculation, the IMC’s official website provides an online calculator where you can enter your property details to get the exact amount.

Due Dates and Rebates
The due date for paying property tax in Indore is typically June 30th of every year. Timely payment is highly encouraged, and the IMC often offers a rebate for paying the full amount in a single lump sum during the first quarter of the financial year.

Rebate: The IMC usually provides a rebate of around 6.5% on property tax for advance payments.

Penalty: Failure to pay the tax by the due date results in a penalty, which can range from 1.5 to 2 times the outstanding tax amount.

Exemptions from Property Tax
Certain properties are exempt from paying property tax. These include:

Buildings and lands used for religious purposes.

Properties of retired soldiers and their widows/widowers.

Buildings and lands used for charitable, educational, or agricultural purposes.

Kutcha houses and traditional huts belonging to poor households.

Houses allotted to beneficiaries under various poverty alleviation programs.