property tax in jammu kashmir
The Jammu and Kashmir LG administration ordered on Tuesday the imposition of property tax in municipal areas of the Union Territory from April 1. The tax rates will be five per cent of taxable annual value (TAV) for residential properties and six per cent for commercial properties
How to calculate property tax in jammu kashmir
Property tax will be imposed in Jammu and Kashmir from April 1, 2023, a notification issued by the J&K govt said on Tuesday.
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In exercise of the powers conferred by Section 71A of the Jammu and Kashmir Municipal Act, 2000 (hereinafter referred to as the Act), read with Sub-Section 1 of Section 65 and Sub-Section 1 of Section 73 thereof, the Government hereby notifies the following rules for levy, assessment and collection of property tax in the Municipalities and Municipal Councils of Union Territory of Jammu and Kashmir.
1. Short title and commencement. (1) These rules shall be called Jammu and Kashmir Property Tax (Other Municipalities) Rules, 2023.
(2) These shall come into force from 1st of April,
2. Definitions. Unless the context otherwise requires, a reference to the "Act" shall mean a reference to the Jammu and Kashmir Municipal Act, 2000, and "Form" shall mean a Form appended to these Rules. Words and expressions used herein shall have the same meaning as given to them in the Act. For words and expressions not defined therein, the definition, if any, in the Jammu and Kashmir Municipal Act, 2000, the Jammu and Kashmir Development Act, 1970, the Jammu and Kashmir Property Tax Board Act, 2013, or in the General Clauses Act, 1897, in that order of precedence, shall be used as an aid to interpretation. For other words and expressions, the meaning shall be construed according to their customary usage appropriate to the context.
3. Manner of calculation of property tax. (1) The Taxable Annual Value (TAV) of a property under the Act and the property tax due thereon for a financial year shall be calculated in accordance with the formula given in Schedule-I to these rules.
The Ministry of Home Affairs empowered J&K administration to impose property taxes for the first time recently by issuing several amendments in the Jammu and Kashmir Municipal Act, 2000 and Jammu and Kashmir Municipal Corporation Act, 2000 carried through the Jammu and Kashmir Reorganization (Adaptation of State Laws) Order, 2020.
(2) The property tax calculated in respect of a building calculated in accordance with sub-Rule (1) above shall hold for a block of three years unless any change to such calculation necessitated on account of the circumstances envisaged in the Act for allowing revision in such calculation. (3) 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.
(4) New buildings coming up after the commencement of the block shall have their property tax liability calculated with reference to the 1st 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.
(5) 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 month not completed shall be ignored.
4. Procedure for assessment and collection of property tax. The procedure prescribed in Chapter VI of the Act, except insofar as it relates to the calculation of the tax due on a property, shall regulate the assessment and collection of property tax.
5. Form of return under sub-section 5 of Section 73 of the Act. A person liable to property tax shall furnish to the Executive Officer or any officer authorized by him in this behalf the particulars of the property and the tax due thereon in
Form-1 by 30th May of the financial year to which the return pertains. It shall be accompanied by a proof of payment in Form-2. Acknowledgment of filing of return shall be in Form-3. A copy of the acknowledgment along with the proof of payment of the second installment of tax shall be furnished by 30th November in cases where the payment is made in two installments.
6. Penalty for delay in filing of return. Failure to file return in due time, unless prevented by sufficient cause, shall, without prejudice to the interest due for delay in payment, make the person from whom it is due liable to a penalty of Rs 100/- or 1% of the tax due, whichever is higher, for every month of default. The maximum penalty shall not exceed Rs 1000/-.
7. Notice for inspection. The notice in terms of sub-section 8 of Section 73 of the Act shall be in Form-4 and the date of inspection shall, unless there are reasons to recorded in writing for giving a shorter notice, not be less than 14 days from the date of notice.
8. Notice for assessment on best judgment basis. The notice in terms of sub-section 9 of Section 73 of the Act shall be in Form-5clearly mentioning the liability of property tax proposed to be determined and the basis thereof, and the date of hearing shall, unless there are reasons to recorded in writing for giving a shorter notice, not be less than 21 days from the date of notice.
9. Notice for re-assessment. The notice in terms of sub-section 10 of Section 73 of the Act shall be in Form-5A clearly mentioning the additional amount of property tax proposed to be levied and the basis thereof, and the date of hearing shall, unless there are reasons to recorded in writing for giving a shorter notice, not be less than 21 days from the date of notice.
10. Notice of demand. The notice of demand in pursuance of assessment or reassessment under sub-section 11 or sub-section 13 of Section 73 of the Act, as the case may be, shall be in Form-6.
11. Appeal. Till such time the Jammu and Kashmir Property Tax Board in terms of the Jammu and Kashmir Property Tax Board Act, 2013 is constituted, the reference thereto in Section 90, 91and 92of the Act shall be deemed as a reference to the Director Urban Local Body of the concerned division.
12. Exemption from payment of property tax.
Vacant lands, not appurtenant to a structure/building shall be exempt from property tax if there's 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 as per 6- monthly cropping surveys of the Revenue department.
Similarly, all the properties of the Municipality and all places of worship, including temples, masjids, gurudwaras, churches, ziarats, etc and cremation and burial grounds shall be exempt from payment of property tax.
All properties owned by 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.
For this the Ministry of Home affairs of Government of India substituted Sections 72 to 80 and now Section 72 states in the previous Acts of 2000: “Unless exempted under this Act or any other law for the time being in force, Property Tax shall be levied on all lands and buildings or vacant lands or both situated within the municipal area... The property tax shall be levied at such percentage not exceeding 15% of the taxable annual value of land and building or vacant land or both as the Government may, by notification, from time to time specify.”
What's new in this order ?
The former State of J&K had provisions to impose property tax in the laws enacted by the then Legislature but now every owner or occupier, who is liable to pay property tax, shall every year submit to the Executive Officer or any officer authorized by him in this behalf a return in the prescribed form within the stipulated period and in the prescribed manner."
Now property taxes will be imposed in Jammu and Kashmir through the municipal corporations, municipal councils and municipal committees in the Union Territory.
What's constitutional scheme on property tax ?
Under the scheme of our Constitution, property tax is leviable by the State Government or a local authority under Entry 49 - "Taxes on lands and buildings" of List II of Schedule VII to the Constitution of India, whereas tax on income is leviable by the Central Government under Entry 82 - "Taxes on income other than agricultural income" of List I of Schedule VII to the Constitution.
Finance commision and focus on property tax board in states :
The 15th Finance Commission recently held meeting with the Ministry of Panchayati Raj and discussed constitution of a property tax board by states among other matters.
The ministry submitted that the Commission may consider to keep its award to the PRIs (Panchayati Raj Institutions) for the revised period 2021-26 at Rs 10 lakh crore, an official statement said.
The meeting was held for forming up Commission's recommendations for the years 2020-21 to 2025-26.