Things you Need to Know About Property Taxes in Kolkata

Property tax is an annual tax levied on real estate properties by the government authorities. Kolkata Municipal Corporation (KMC) is responsible for collecting property taxes every year. The Kolkata Municipal Corporation Bill was passed on 15th December 2016, to make the tax collection process hassle-free. This empowered the Kolkata Municipal Corporation to assess property taxes efficiently. They also have the discretion to increase or decrease the rates.

Today I am going to highlight the things you need to know about property taxes in Kolkata in detail. As responsible citizens of India, we must pay property taxes. Also the top real estate companies in Kolkata never delays their property tax payment and always reminds you about the due dates so that you can fulfill your duty towards the Nation. So, if you are planning to buy an apartment, always try to choose the best real estate company,they will let you know all the process and you will be tension free.

The KMC Property Tax is conducted by following the Unit Area Assessment (UAA) Scheme. Property owners can calculate their taxes themselves following this scheme. Let us discuss some key points of the UAA system:

• The cities are divided into 293 blocks and 7 categories ranging from A to G based on factors like infrastructure, property’s market value etc. An annual value has been assigned to these categories per square foot, called Base Unit Area Value ( BUAV). The highest BUAV is recorded for category A, whereas the lowest is for G, which includes the impoverished areas of Kolkata to reduce the burden of taxes on the people dwelling there.

• Furthermore, the Refuge Rehabilitation and various government schemes for economically weaker sections fall under Category E. This uniform tax collecting scheme covers around 6 lakh KMC taxpayers.

The tax collection is made simple by using a simple formula. The KMC property tax collections follow the concept of Multiplicative Factors(MF) to differentiate between 2 houses in the same block. Therefore, variation in factors like location, the purpose of property use, age, nature of occupancy and property structure determines the increase or decrease of BUAV. The formula for KMC tax collection is as follows:

Annual Tax= BUAV*Covered Space/Land Area* Location MF value*Usage MF value*Age MF value*Structure MF value*Occupancy MF value*Rate of Tax (including HB tax Howrah Bridge Tax, which is applicable for the properties near Howrah Bridge)

The tax rate varies depending on the property type. Let us see how.

Property Type

Tax rate (%)

Developing Slum

6

Developed Slums

8

Government properties under KMC Act, 1980

10

Properties with annual value

Tanusree is a professional writer working in the real estate field for a long time. She has written many informative articles and blogs on "Real Estate". She has a large reader base that regularly follows her works.