Determination Of Annual Valuation(AV) :
a) If the property is used by the owner himself, then “Reasonable Rental Method” is applied, i.e. from our database and comparing with similar premises, expected rent per month, which the property is capable of fetching, is determined. Then it is multiplied by 12 to arrive at Annual Rental Value and a 10% statutory maintenance allowance is subtracted to arrive at the Annual Valuation (rounded off to nearest ten rupees)
b)If the property is tenanted, then the actual monthly rent (including service charges if any) is multiplied by 12 less 10% statutory allowance to arrive at the Annual Valuation.
c) In case of Theatre/Cinema halls 7.5% of the Gross Annual receipts (excluding taxes) is fixed as Annual Value for the Hall.
d) In case of vacant unconstructed land, the Annual Value w.e.f 3rd August 2008 – 2009 will be 2.5% and 7% of estimated market value for land measuring upto and above 5 cottah respectively. For effective assessment period before March 2008-09, the rate is 7% for all cases irrespective of the land area.
Rates of Taxes :
a) If the Annual Valuation as fixed above, does not exceed Rs.600/-, then the rate of tax is 11% of the Annual Value. That is if A.V. is Rs,500/- then the property tax per year is Rs.55/- plus Howrah bridge tax . Rebate @ 0.5% of the quarterly tax is allowed if deposited in time. To get quarterly gross amount of tax this should be divided by 4 and rounded off to the nearest rupee. Net tax after rebate will also be rounded off to the nearest rupee.
b) If the Annual Valuation as fixed above, exceeds Rs.600/- but does not exceed Rs.18000/-, then tax rate is the percentage of the A.V. worked out by dividing the A.V. of the premises by 600 and adding 10 to the quotient, the sum thus worked out being rounded off to the nearest first place of decimal. That is if A.V. of premises is Rs.1300/-; then rate will be 1300/600=2.16%. Hence property tax percentage is 2.16+10=12.2% (rounded off). So gross tax of such property per year will be Rs.158.60/- plus Howrah bridge tax @ 0.5%. of AV. To get quarterly gross amount of tax this should be divided by 4 and rounded off to the nearest rupee. A further rebate of 5% of the quarterly tax is allowed if deposited in time. Net tax after rebate will also be rounded off to the nearest rupee.
c) If the Annual Valuation as fixed above exceeds Rs.18000/-, then the rate of tax is 40% of the Annual Value. That is if A.V. is Rs20000/- then the property tax per year is Rs.8000/- plus Howrah Bridge tax @ 0.5% of A.V. and a further rebate of 5% of the quarterly tax is allowed, if deposited in time.
d) In case of general flats/ appropriate units tax rate percentage should be calculated on a cumulative Annual Value of all the flats within that premises and should be applied on individual Annual Value for respective flats to get the amount of gross property tax
e) For Bustee, and some statutory organizations the rate of tax is different. For Bustee the maximum tax rate is 18% and minimum tax rate is 15% on Annual Value
f) For commercial/non-residential property, normally a surcharge @ not exceeding 50% of tax is applicable to such property or portion of such property under non residential use and is levied additionally.
g) No tax is payable if AV does not exceed Rs.300 (three hundred)
How to learn outstanding dues in respect of Property Tax :
Please procure an LOI from Computer Section of respective units of Assessment Collection Department and get it verified from the concerned division/ unit and if the LOI is found correct then that is your O/S. [see sample]
Functions of Municipal Assessment Tribunal :
Each assessee is given liberty to appear before a Hearing Officer if he has any objection against the valuation proposed by KMC (Section 186 and 187 of KMC Act, 1980). Hearing Officer considers such objections (verbal/written) and fixes the Annual Valuation against the premises of the assessee as per provisions under section 188 of KMC Act, 1980. The assessee has been given a further chance to appeal against such valuation as determined under section 188 if he prefers to. He can appeal before Municipal Assessment Tribunal (under section 189) consisting of a Chairman and a number of other members not exceeding five in number. However no appeal will be entertained by the said tribunal if the disputed tax is not deposited. Provisions of Limitation Act, 1963 is applicable relating to such appeal before tribunal. Valuation as determined by the Tribunal is final and no proceeding shall lie in any Civil Court against the valuation as determined by The Tribunal
Information sheet for recovery of Property Tax through other penal measures :
Sections 219-221B, 223, 225 and Section 275(aa) of Calcutta Municipal Act, 1980 deals the situation as mentioned above.
a) Issuance of Warrant of Distress and sale of movable property (Sections 220-221)
b) Attachment and sale of immovable property (Section 221A and sale of property distrained or attached (Section 221 B)
c) Recovery under Bengal Act III, 1913 (Section 223)
d) Attachment of rent of the tenant(s) [Section 225]
e) Disconnection of water supply line (Section 275 -1 [aa])