What is a tax certificate


A tax certificate is issued to a property owner to show the amount of tax that is liable to be paid to the central government due to possession of land or property of any kind. The tax certificate is a legal document and must be honoured by all citizens of the country. The following are more detailed information on the tax certificate.

Things to be kept in mind while pursuing a tax certificate:

The following are important pointers towards applying for a tax certificate and important pointers that are to be kept in mind about tax certificate:

a)      The tax certificate is an important legal document that is sometimes used to prove the ownership of a property. The tax certificate is mandatory to be shown by the non-residents of a country, in particular.

b)      The tax certificate can also be used to show taxation exemption from double tax implications.

c)      The government of the country generally issues a tax certificate at a certain point of time every financial year and lists the amount of tax that is due to the paid by the owner for the entire previous year.

d)     The tax certificate is to be read and understood thoroughly by the owner. The necessary payments must be done within the due date.

e)      If the due payment is sent done to the government within the deadline, then fine or penalty would be imposed on the individual as per Income Tax regulations.

f)       The tax certificate can be used as a powerful tool to prove that the owner has or has not made the income tax payment on home or property.

g)      Whenever the home owner buys a property, then the tax department should be notified of the new owner and the change of address of a previous owner. These help in keeping track of property owners and recover the taxes from them.


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