Land has been one of the most important sources for revenue to the local bodies, which is subject to value addition through infrastructure creation. Of late, value capture financing has become an important option for mobilizing infrastructural development finance by local urban bodies. Urban development cannot take place without construction of good roads, ensuring quality water supply, ensuring uninterrupted good quality electricity, provision of streetlights, development of drainage system etc. in a city.The present paper is an attempt to study the urbanization process through land development and ensure efficient tax collection by the State through involvement of private agencies and proper assessment of taxes on households. After introduction of self-assessment taxation process in 2015-16 it has been noticed that there is quantum jump in the collection of tax revenue, which has resulted in accelerating the process of urban development in major districts of the State. In the present paper, Ranchi Municipal Corporation are being considered for the study.