The Jammu and Kashmir administration on February 21, 2023 issued a notification levying property tax in the municipal areas of the Union Territory (UT), which will be applicable on all land and buildings from April 1, 2023.
H Rajesh Prasad said, “In exercise of the power conferred by section 71A of the Jammu and Kashmir Municipal Act 2000, the government has notified rules for levy, assessment and collection of property tax in the municipalities and municipal councils of the Union Territory.” Have done.” Principal Secretary, Housing Department in a notification.
Jammu and Kashmir property tax rates
The property tax rates for residential properties will be 5% of the Taxable Annual Value (TAV). Commercial properties in the UT will be charged at 6% of the TAV. The TAV of a property is decided on the basis of factors including municipality type, land value, floor, area, use, age of the property, slab, use type and occupancy.
Jammu and Kashmir Property Tax Exemption
“As per the new tax formula, residential houses up to 1000 sq ft in J&K will be exempted from paying property tax. Residential property with built-up area up to 1500 sq ft has also been exempted, ensuring relief for LIG and MIG category residential homes.
No property tax shall be levied on vacant land, which is not attached to any structure or building, if such land is not permitted for construction or is not for agricultural use. All places of worship, cremation grounds and graveyards will be exempted from property tax. Also, all properties owned by the government will be exempted from paying property tax. However, they will have to pay a service charge of 3% of the TAV to the municipality.
The wealth tax will remain true for a block of three years unless the calculation is amended based on circumstances mentioned in the Act. Therefore, the first block of wealth tax calculation which begins on April 1, 2023, will be valid till March 31, 2026.
Those liable to pay property tax will have to submit property details and pay the first installment by May 30, FY24. The second installment of wealth tax can be paid till November 30, FY24. Also, people can avail 10% rebate on early deposit of property tax as per the Act.
Jammu and Kashmir Property Tax Penalty
Failure to pay property tax on time will attract a penalty of Rs 100 or 1% of the property tax. However, the maximum fine shall not exceed Rs 1,000. Note that in case of any grievance or re-evaluation is required, an appeal can be made to the Director of Local Bodies.
Recall that the Ministry of Home Affairs (MHA) notified the J&K administration after amending the J&K Municipal Act, 2000 and the J&K Municipal Corporation Act, 2000 through the J&K Reorganization (Adaptation of State Laws) Order. was given the right to impose 2020, in October 2020.
