All about KMC Property Tax in Kolkata
The annual tax levied on a real estate property by the government authorities is known as Property Tax. Respective municipalities collect these funds to provide civic amenities and other services.
Similarly, residential owners in Kolkata must pay taxes to the KMC (Kolkata Municipal Corporation) every year.
Therefore, we have compiled some important facts about Kolkata Municipal Corporation property tax and made a comprehensive guide to simplify the process.
Let's get into the details!
Understanding KMC property tax
The Kolkata Municipal Corporation Bill was passed on the 15th of December 2016, to make the tax collecting process seamless. This empowered the Kolkata Municipal Corporation or KMC to effectively assess an individual's property tax and also control the increase or decrease of the rates.
Process of KMC property tax calculation
The KMC property tax calculation is conducted by following the Unit Area Assessment (UAA) scheme. Under this scheme, property owners can calculate their taxes themselves, and it also removes the ambiguity of the previous tax calculating system.
Here are some key points of the UAA system:
- Under this scheme, the cities are divided into 293 blocks and 7 categories ranging from A to G. This is based on factors like infrastructure, property’s market value, and other facilities.
- An annual value has been assigned to these categories per square feet, called Base Unit Area Value or BUAV. Additionally, the highest BUAV is recorded for category A, whereas the lowest is for G.
- Under category G, the slum areas around Kolkata have been included to reduce the tax burden on the economically weaker sections. Furthermore, the Refugee Rehabilitation or the RR colonies and various government schemes for EWS fall under category E.
- This uniform tax calculating scheme covers around 6 lakh Kolkata corporation property taxpayers.
Now, let us see how the calculation of BUAV for land comprising building or vacant land or covered space of a building would work.
1) Base Unit Area Calculation
| Block category | BUAV per sq ft (in Rs) |
|---|---|
| A | 74 |
| B | 56 |
| C | 42 |
| D | 32 |
| E | 24 |
| F | 18 |
| G | 13 |
Moreover, it is vital to note that KMC property tax calculation works on the concept of Multiplicative Factors (MF) to differentiate between two houses in the same block. Therefore, variation in several factors like the purpose of property use, location, age, nature of occupancy, and property structure signifies the increase or decrease of BUAV.
Let's find out how the variation occurs. Take a look:
2) Multiplicative Factors
| Property location (Road width) | MF |
|---|---|
| ≤ 2.5m | 0.6 |
| >2.5 m but ≤ 3.5 m | 0.8 |
| >3.5 m but ≤ 12 m | 1 |
| >12 m | 1.2 |
| Building age | MF |
|---|---|
| > 20 years | 1 |
| <20 years > 50 years | 0.9 |
| < 50 years | 0.8 |
| Occupancy status | MF |
|---|---|
| Property under tenant's occupation, tenancy ≤ 20 years used for non-residential purpose | 4 |
| Property under tenant's occupation, tenancy ≤ 20 years used for residential purpose | 1.5 |
| Garage/parking space/fee | 4 |
| Property under tenant's occupation, tenancy > 20 years but ≤ 50 years, tenant not protected under West Bengal premises | 1.2 |
| Property under tenant's occupation, tenancy > 20 years but ≤ 50 years, tenant protected under West Bengal premises | 1 |
| Property under tenant's occupation, tenancy > 50 years old | 1 |
| Property under family owner's occupation | 1 |
| Building usage | MF |
|---|---|
| Residential use | 1 |
| Waterbody | 0.5 |
| Health, educational institution, single-screen movie hall, hotel < 3-star, Bar | 3 |
| Industrial/manufacturing, shop<250 sq. ft., Restaurant | 2 |
| 3-star and 4-star hotels, ceremonial house | 4 |
| Multiplex, mall, commercial shops | 6 |
| Office, bank, hotel 5-star or more | 5 |
| Night club, offsite ATM, tower, hoarding | 7 |
| Vacant land up to 5 kottah not falling under above categories | 2 |
| Vacant land more than 5 kottah | 8 |
| Building structure | MF |
|---|---|
| Residential building, plot size > 10 kottah | 1.5 |
| Property under tenant's occupation, tenancy ≤ 20 years used for residential purpose | 1.5 |
| Special projects by IG, apartments having covered space > 2000 sq. ft. | 1.5 |
| Pucca properties | 1 |
| Open and covered parking spaces and garage | 0.8 |
| Semi-pucca | 0.6 |
| Common area | 0.5 |
| Kutcha | 0.5 |
If you want to know about the tax rate variance with the type of property, refer to the following table.
| Property type | Tax rate (%) |
|---|---|
| Undeveloped slums | 6 |
| Developed slums | 8 |
| Government properties under KMC Act, 1980 | 10 |
| Properties with annual value <Rs 30, 000 | 15 |
| Others | 20 |
Considering all the above factors, the tax calculation is made simple by using a single formula. Check out the equation for better understanding.
Annual 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)
Here, HB tax means Howrah Bridge tax, which is applicable on properties near the said area.
How to pay KMC property tax online?
Taxpayers can opt for online and offline procedures for property tax payment. Both modes of payment are extremely convenient and effective. Now we will explain the procedures of tax payment in a nutshell.
KMC property tax online payment
Given below are the steps to follow for KMC tax payment online.
- Visit the official website of KMC.
- You will get an option of Online Services from the left menu bar.
- From the drop-down menu, you need to select the assessment collection.
- You will get a Make Online Payment option now. Clicking on this will lead you to the following three options:
- Current PD- This is the periodic demand for bills issued annually based on the property's final value.
- Outstanding LOI- Letter of Arrears is for unpaid bills.
- Fresh-Supplementary- In the event of a court order directing a change in a previously issued bill or an initial assessment of the property, issuing fresh-supplementary bills occurs.
- After selecting the appropriate option, you will view a new page, where you need to submit the assessee number, contact number, and mail ID. This will lead you to the final confirmation page from where you can check your payment details.
- After completing the KMC property tax payment online, you will get an e-receipt.
Apart from knowing how to pay KMC property tax bills online, you should also be aware of the offline payment procedure.
KMC property tax offline process
To opt for offline payment of KMC property tax, the following steps are necessary to follow.
- You have to visit your respective municipal corporation.
- After visiting the center, you need to obtain an application form by paying a nominal fee.
- This step is crucial as you need to enter all the required details in the application form with precision.
- Once entered, you can submit the application to the authority.
- After paying the fee, you will receive a KMC property tax paid receipt.
Additionally, taxpayers need to pay a lump sum amount before the first quarter of a given fiscal year. Therefore, the last date to pay the Kolkata corporation tax in online or offline modes is June 30.
How to check your tax payment status online?
Visit the official portal to know the Kolkata Municipal Corporation property tax online payment status. Upon entering the property details on the official website, you can clarify your KMC property tax payment status.
How to generate the tax receipt?
No matter how you pay your Kolkata corporation property tax, tax receipt or challan is critical to collect. In online mode, you can collect the challan from the official website and reprint it in case you forget to do so initially. When you pay in offline mode, you can collect the receipt from respective centers after paying the fees.
KMC property tax waiver scheme
In October 2020, the KMC administered a tax waiver scheme to make up for the revenue loss from property tax. However, this applies to those who received the KMC property tax bill for the fiscal year 2019-20 by 31st March 2020.
According to this scheme, a taxpayer clearing dues by 28th February 2021, is eligible for 100% waive-off of the interest and penalty. If you pay within March and May 2021, there will be a waiver of 60% and 99% rebate on penalties.
But, to avail of this scheme, one has to apply by 31st January 2020. Collection of applications will take place in the tax collection centers of KMC, in headquarters and online mode. As per the recent data, the tax department received around 7000 applications as of January 2021. (1)
Therefore, with this guide, you can pay KMC property tax annually without any hassle.
Frequently Asked Questions
How to find the assessee number online while opting for online payment of property tax in Kolkata?
You can find the assessee number from the KMC official website by selecting the Assessee Information Search option.
How to register on the KMC website?
You can register on the KMC website by choosing the UAA Online Submission option from the website's homepage.
What will happen if I do not pay property tax in Kolkata?
In case of any defaults, you are liable to be penalised. You may need to bear up to 15% of the outstanding property tax amount as a one-time penalty, along with several other drawbacks.