Question

What is the difference between being exempt from income tax and having a property tax exemption?

Answer 1

1-: Being exempt from the income tax means that the reduction or the removal of the tax from that item.

As the tax is compulsory to pay and almost each and everything includes some amount of tax that is to be paid to the Government.

This exemption from the tax can be on anything like Property, commercial buildings, shops or it may be on some Items.

Different Things have different amount of taxes that Government sets.

It is unanimously decided by the central, state or municipal governments to stimulate the local economy.

2-: Property tax exemption is almost similar, as in this there is a reduction or removal of tax from the Properties( that the owner of that property has to pay some tax).

The owner of that property has to pay tax to the local Government annually or semi-annually.

The amount of tax that the owner has to pay depends on the type and the size of the property.

The commercial or rented property that is not owned by the taxpayer, cannot get exemption from tax.

The owner of the property can claim tax exemption from the local government if that property is only for the personal use for the owner.