Govt issues notification for levy assessment & collection of Property Tax in J&K
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, 2023.
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-l to these rules.
(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 is 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.
Why property tax in J&K?
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.
By order of the Government of Jammu and Kashmir