India, Nov. 16 -- Property tax is mandatory, but the rules are complex and differ across the country. Learn the three key systems used to calculate your tax, how to find rebates you qualify for, and what penalties you face if payments are delayed.

Tax on lands and buildings is a state subject since it comes under State List (List II) of the Seventh Schedule of the Indian Constitution. "Therefore, the rate at which property is taxed and the method adopted for calculating property tax varies from one state to another," says Sharma.

Municipal bodies across India generally rely on three primary systems for calculating property tax: the unit area value system, the capital value system, and the annual rental value system.

Cities such as Delh...