Property Tax

SRINAGAR — The administration of Jammu & Kashmir Union Territory on Tuesday unveiled rules for levying, assessment and collection of property tax in the limits of municipal councils and committees of the UT.

The Housing & Urban Development Department today notified “The Jammu and Kashmir Property Tax (Other Municipalities) Rules, 2023.”

According to the notification, as per the news agency KNO, these rules, which would be applicable within the limits of municipal councils and municipal committees, shall come into force from April 1, 2023.

The rules define the procedure for the calculation of property tax. According to the rules, the Taxable Annual Value (TAV) of a property under the Municipal Act 2000 and the property tax due thereon for a financial year shall be calculated in accordance with a formula given in Schedule-I to these rules.

The rules state that the property tax on residential property would be 5% of Taxable Annual Value while that of non-residential property be 6% of Taxable Annual Value.

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The property tax calculated in respect of a building shall hold for a block of three years unless any change to such calculation is necessitated on account of the circumstances envisaged in the Act for allowing revision in such calculation, the rules state.

“The first block shall commence from 1st April 2023 and shall continue to remain in force till 31st March 2026. The blocks shall be similarly calculated thereafter,” read the rules.

According to the rules, new buildings coming up after the commencement of the block shall have their property tax liability calculated with reference to the first day of the relevant block, and irrespective of their having completed three years, their liability to tax shall be calculated anew from the date of commencement of the new block of three years for the Corporation as a whole.

“Where a building is liable to property tax for only a part of the year, the tax due shall be proportional to the number of completed months and parts of a month not completed shall be ignored,” the rules state.

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According to the rules, vacant lands, not appurtenant to a structure/building shall be exempt from property tax if there is a Master Plan in force in the area, under which any construction/development on such vacant land is disallowed or if they have been put to agricultural use.

“Similarly, all the properties of the municipality and all places of worship, including temples, masjids, Gurdwaras, Churches, Ziarats, etc. and cremation and burial grounds shall be exempt from payment of property tax,” the rules state.

The rules state that all properties owned by the Government of India / UT government shall be exempted from payment of property tax. “However, service charge at the rate 3% of the taxable annual value shall be payable to the Municipality in respect of such properties,” the rules state.

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