House Property tax.

Hi Shyam,

Regarding property tax liability, generally, property tax becomes payable from the date of occupancy or possession, not necessarily from the date of sale deed. This is because the tax is levied on the usage or occupation of the property.

Key Points:

Occupancy Certificate (OC) is the official approval that the building is fit for occupation.
Municipal authorities typically start levying property tax once the OC is issued and the property is occupied.
The sale deed is a transfer of ownership but doesn't automatically trigger property tax liability if the property is not yet occupied.

Case Law Reference:

One often-cited case on this issue is:

Municipal Corporation of Delhi v. Gurnam Kaur, (1967) 2 SCR 345
This case held that property tax is a tax on occupation or use of property, so liability arises from actual occupation.

Another relevant case:

Maharashtra Municipal Corporation v. Kamal Singh (2006)
The Court ruled that property tax liability arises on the date the property is put to use or occupation, not merely on transfer of ownership.