Paying property tax is the duty of every responsible citizen. A property tax is an annual tax which is deposited to the civic body that has jurisdiction in that particular area. Whether public, private, residential or commercial, property tax is levied on all the buildings. However vacant lands, religious institutions, and charitable organisations are exempted from property tax.
Following our earlier series today we will guide on the procedure to pay property tax in the capital city of West Bengal, which is Kolkata.
Just like Mumbai and Gurgaon, in Kolkata, the Kolkata Municipal Corporation (KMC) has the mandate to levy and collect property tax. So let’s understand the complete process of calculation in Detail:
How to calculate property tax in Kolkata?
In order to remove any subjectivity or ambiguity that existed under the earlier Annual Ratable Value system, Kolkata Municipal Corporation has introduced a new Unit Area Assessment (UAA) system in March 2017, so that Property owners can calculate their tax on their own.
Under this system, the entire Kolkata is divided into 293 blocks. These blocks are divided into seven categories A, B, C, D, E, F and G on the basis of market value, infrastructure, facilities, etc. For each category, an annual value per sq ft, known as the Base Unit Area Value (BUAV) is assigned. Category ‘A’ has the highest BUAV and ‘G’ the lowest.
Apart from this, slums or a thinka – lower area, falls in the category ‘G’ irrespective of any block they fall. On the other hand, all Refugee rehabilitation colonies fall under Category ‘E’ irrespective of any location or block.
Another important point which is necessary to calculate Property tax is multiplicative factors (MFs). This factor involves various variations for example; purpose of use, location of the property within the block, the age of the property, nature of occupancy and type of structure. These factors increase or decrease the BUAV of different properties.
So after all the inclusion, the annual property tax under the UAA system is calculated by following formula:
Property tax = BUAV x Covered space/Land area x Location MF value x Usage MF value x Age MF value x Structure MF value x Occupancy MF value x Rate of tax (including HB tax)
HB tax- Howrah Bridge tax, which applies to properties which fall nearby to this area.
Modes of Payment of Property tax
In Kolkata, one can pay their property tax either at KMC help centers or citizen felicitation center. However, the best way which people find easier is through the online portal of Municipal Corporation of Kolkata. One can go to the web portal of Municipal Corporation and select payment method. After selecting this, submit your property ID under which the amount of your property tax will be shown on the screen. You can also calculate it manually by checking the BUAV and MF values, in the scheme section. Once you have paid, take the receipt of tax payment and keep it with you for future documentation. Ensure there must be no errors; if there is any then correct them instantaneously.