Property tax forms the major part of the KMC’s income, from which basic civic amenities like roads, sewage systems, and street lighting are paid for. It is a tax on the yearly value of properties and acts as a major contributor to Kolkata’s development. It is necessary for house owners to know the system of property tax in KMC in order to be sure that they fulfill their obligations.
This blog eases the doubts regardingKMC property tax procedures, discussing the Unit Area Assessment (UAA) method, calculation of the tax, payment options, waiver schemes, fines, and property mutation, thus enabling property owners to meet KMC requirements efficiently.
What is KMC Property Tax?
KMC Property Tax is the money collected by the Kolkata Municipal Corporation (KMC) by charging people who own property in the KMC area. This money is used to provide services in the city of Kolkata. KMC Property Tax is a system under the KMC Act, whereby property tax is computed on the basis of the property’s yearly worth, taking into account its location, usage, and area, and other such factors; thus, a fair tax assessment is guaranteed.
Every property owner living within the KMC’s jurisdiction, whether he be an individual, commercial entity, or institution, is obligated to make property tax payments (unless exempted by the KMC). The Assessee Number is a special code given to every property and helps in monitoring the tax duties and records of the KMC system.
The KMC Unit Area Assessment (UAA) System Explained
The formula for KMC annual property tax is as follows,,
Annual Tax = [BUAV] × [Covered Space/Land Area] × [Age MF Value] × [Structure MF Value] × [Usage MF Value] × [Location MF Value] × [Occupancy MF Value] × [Rate of Tax (including HB Tax)]
In this formula:
- BUAV (Base Unit Area Value): The value for one square foot of a particular area and category of the property.
| Base Unit Area Values for covered space of building or land comprising building or vacant land | |
| Category | Rs / sq ft |
| A | 74 |
| B | 56 |
| C | 42 |
| D | 32 |
| E | 24 |
| F | 18 |
| G | 13 |
- Covered Space/Land Area: The property’s total built-up area in sq ft.
- Age MF Value: A factor multiplied by the property age to determine the value.
| Code | Age of building / premises(MF1) | Multiplicative factor value |
| A1 | Age of premises 20 years or less | 1 |
| A2 | Age of premises > 20 years but ≤ 50years | 0.9 |
| A3 | Age of premises > 50 years | 0.8 |
- Location MF Value: A factor for a property based on the area it is in (e.g., city center, outskirts).
| Code | Location of property/ premise (MF2) | MF |
| L1 | Property abutted by roads having width ≤ 2.5m | 0.6 |
| L2 | Property abutted by roads having width >2.5 m but ≤ 3.5 m | 0.8 |
| L3 | Property abutted by roads having width >3.5 m but ≤ 12 m | 1 |
| L4 | Property abutted by roads having width >12 m | 1.2 |
- Structure MF Value: A factor multiplied by the particular building type to determine the value.
| Structure code | Structure of building (MF4) | MF |
| S1 | Residential Building (not being an apartment) on a plot size > 10 cottah | 1.5 |
| S2 | Apartments belonging to such “Special Projects” as earmarked by IG Registration (excluding apartments identified/ notified as MIG / LIG by any Government/ statutory body) or, Apartments having “covered space (excluding car parking space)” > 2000 sq. ft. | 1.5 |
| S3 | All Pucca properties and such other properties not falling under any of the other categories | 1 |
| S4 | All Car Parking Spaces (open and covered) and Garage | 0.8 |
| S5 | Semi-Pucca | 0.6 |
| S6 | Proportionate Common Area | 0.5 |
| S7 | Kuchcha | 0.5 |
- Occupancy MF Value: A factor for a property based on the status of occupancy (e.g., owner-occupied, rented).
- Usage MF Value: A factor for a property based on its use (e.g., residential, commercial).
| Use code | Usage Types (MF5) | MF |
| U1 | Water body | 0.5 |
| U2 | Residential use | 1 |
| U3 | Industrial/manufacturing, Shop<250 Sq.Ft., Restaurant | 2 |
| U4 | Health, Edu – Inst, Single Screen Cinema, Hotel < 3 star, Bar | 3 |
| U5 | Hotels 3 star and 4 star, Ceremonial House | 4 |
| U6 | Office, bank, Hotel 5 star or more | 5 |
| U7 | Commercial shops (not in U3) , mall, Multiplex | 6 |
| U8 | Offsite ATM, Tower, Hoarding, Night Club | 7 |
| U9 | Vacant Land upto 5 cottah not falling under U1 to U8 | 2 |
| U10 | Vacant Land more than 5 cottah | 8 |
- Rate of Tax: The percentage of the total value to which you may also add an extra tax, for example, the Howrah Bridge (HB) Tax.
Property Tax on Residential Properties
How Are ‘Howrah Bridge Tax’ and Other Cesses Applied?
1. Howrah Bridge Tax
- Applied to properties near the Howrah Bridge.
- Rate varies based on proximity and property type (residential/commercial).
- Collected separately from the general property tax.
2. Sewerage Tax
- Charged based on the property’s ARV (Annual Rental Value).
- Applicable to properties connected to the city’s sewage system.
3. Water Tax
- Based on the property’s water consumption.
- Levied on all properties receiving water supply from KMC.
4. Other Cesses
- Includes library, street lighting, and education cess.
- Usually small percentages of property tax for specific civic projects.
How to Pay Your KMC Property Tax
Online Payment Methods
1. Visit the official KMC property tax portal.
2. Enter your Assessee Number to view your tax details.
3. Choose your payment method (UPI, debit/credit card, or net banking).
4. Complete the transaction and receive a confirmation.
Offline Payment Methods
1. Visit the KMC Treasury Counter or e-Kolkata Service Centre.
2. Provide your Assessee Number and pay via cash or demand draft.
3. Obtain a property tax receipt immediately.
Downloading Your e-Receipt and Checking History
1. After online payment, download your e-receipt directly from the portal.
2. For offline payments, receipts are issued on the spot.
3. You can check your payment history and outstanding dues through the KMC portal for future reference.
4. Always ensure you keep the receipts for your records.
Assessment and Registration of New Properties
KMC has a detailed procedure for the assessment and registration of new or changed properties.
The Self-Assessment Scheme (SAS) for New or Modified Properties
Any new or changed properties should come through the Self-Assessment Scheme (SAS), where property owners themselves evaluate and report property details for tax purposes.
Required Documents for New Property Assessment and Registration
Documents that are necessary for assessment are proof of ownership (sale deed, gift deed), approved building plans, completion certificate, and identity proof (Aadhaar, PAN).
The Process of General Revaluation (GR) by KMC
KMC carries out General Revaluation (GR) at intervals to update the values of properties and their tax rates. Property owners are required to submit updated assessments during GR, and KMC adjusts the property’s tax with the new valuation. Such a procedure keeps the new or modified properties valued correctly, reflecting the accurate assessment and registration for tax.
Mutation: Changing Property Ownership Records
Property mutation is the process of updating property ownership records with the Kolkata Municipal Corporation (KMC). It is essential for legal recognition of the new owner and ensures that property taxes are assigned to the rightful party.
Why Property Mutation is Crucial?
- Legal Ownership: Ensures the new owner’s rights are formally recognized.
- Property Tax Liability: The new owner becomes responsible for property tax payments.
- Future Transactions: Facilitates the sale, mortgage, or inheritance of property.
Steps to Apply for Mutation with KMC
1. Online: Submit the mutation application via the KMC portal.
2. Offline: Visit KMC’s designated office with the required documents.
List of Documents Required
- Sale deed or gift deed.
- Proof of identity (Aadhaar, PAN).
- Property tax receipts.
- Proof of residence.
Upon submission of the application and verification, the KMC gives a mutation certificate as proof of the validity of mutation.
KMC Property Tax Waiver Schemes and Penalties
KMC is known to launch 100% interest waiver schemes for a limited period to encourage the residents to pay their property tax on time. Generally, this waiver is offered during special drives, which not only provides relief to property owners, but also ensures that no interest and penalty charges are levied on their unpaid taxes.
Eligibility and Application Process
Property owners who have not paid their taxes for the last few years are eligible candidates for the waiver of interest and penalty charges on overdue taxes. For example, an owner can apply to pay the principal amount within the time limit, which can be either online through the KMC portal or at the counters of authorised banks.
Penalties and Interest
Missed payments are subject to penalties and additional interest, which are calculated at a certain rate of the unpaid amount. It is also possible that penalty rates will be hiked gradually over time, thereby stressing the point that paying your taxes on time will save you from more financial burdens.
How to Check Your Property Tax Status and Dues
If you want to check your property tax status and dues in Kolkata, then you should do the following:
1. Viewing Current and Outstanding Bills on the KMC Portal
Access the KMC Property Tax website to check your current and unpaid property tax bills by entering your Assessee Number. The portal will show the amount due, payment history, and due date for the current year’s tax.
2. Role of the “Bill of Demand”
The Bill of Demand is a legal notice sent by KMC, which specifies the tax amount along with the penalties and the interest on delayed payments. It definitely makes the case for the settlement of taxes.
3. Getting a Statement for Your Paid Taxes
You can obtain a tax paid statement on the KMC portal by inputting the Assessee Number. It contains a summary of all past tax payments, so you can always keep the right records for future use.
Grievance Redressal and Corrections
If there are errors in your property records or tax bill, it is crucial to correct them promptly to avoid overpayment or legal complications.
1. Correcting Errors in Property Records or Bills
- Verify the details such as property area, tax rate, and Assessee Number on your bill.
- If errors are found, visit the KMC Assessment Department with proof of ownership and supporting documents.
2. Filing a Formal Grievance
- Submit a written grievance to the KMC Assessment Department, detailing the issue. Attach relevant documents like tax receipts, building plans, and ownership proof.
- The department will review and rectify the error, if applicable.
3. Contact Information
- Reach out to the KMC Assessment Department via their official portal, phone number (+91 33 2286-1212/1313/1414), or email for inquiries, assistance, or to file grievances.
Conclusion
To avoid penalty fines, property owners in Kolkata need to be aware of the changing tax rules in the city, file returns correctly, and make the necessary payments on time, whether it is Howrah Bridge Tax, Sewerage Tax, Water Tax, or any other cesses. Checking the KMC portal for online payments and self-assessment is mandatory.
KMC is rapidly embracing digitisation in tax-related services. It aims to introduce fully automated systems for tax calculations, facilitate online payment processes, and provide real-time updates, all of which will ensure the smooth and comfortable transaction of property taxes in the city by bringing increased transparency, reduced time wastage, and ensuring lesser inconvenience, allowing the completion of tax payments anytime and anywhere.
Apoorva H P Achar