KMC Property Tax: A Complete Overview

An Overview of KMC Property Tax

KMC Property Tax payment is a yearly tax collected by the government on a real estate property in Kolkata. The respective municipalities collect this money to offer civic facilities and other services.

Similarly, residents of Kolkata need to pay annual taxes to the Kolkata Municipal Corporation (KMC) (Kolkata Municipal Corporation). As a result, we’ve gathered some essential information regarding Kolkata Municipal Corporation property tax and created a thorough guide to help you through the process.

KMC Property Tax

Property tax is a levy collected by the different government bodies on real estate properties. The Kolkata Municipal Corporation property tax (Amendment) Bill 2016 was passed on December 15, 2016, to make the tax collecting process easier. The Kolkata Municipal Corporation is in charge of collecting property taxes in Kolkata (KMC)

When was the KMC property tax online payment system launched?

When did the KMC tax payment online system become live? TATA Consultancy Services created the software for the Kolkata Municipal Corporation’s online tax payment system introduced in 2010.

What is the Unit Area Assessment System?

Kolkata has 293 blocks and categories, ranging from A to G, according to the UAA system. The infrastructure, utilities, and market worth of the property are used to divide it. The new system covers around 6 lakh taxpayers.

Every category will be given a BUAV (Base Unit Are Value). The BUAV for category A will be the greatest, while the BUAV for category G will be the lowest.

The following is the formula used to compute the Kolkata Municipal corporation tax under the UAA system:

Annual Tax = BUAV x Space that is covered/ Area of the land x Rate of tax (inclusive of HB tax) x Occupancy MF value x Structure MF value x Age MF value x Usage MF value x Location MF value

It’s critical that all UAA’s records be up to date and that no dues are owed. If there are any inaccuracies, they should be addressed as soon as possible.

What is the formula for property tax calculation in KMC?

Under the UAA system, the following formula is used to compute the Kolkata corporation tax:

Annual Tax = BUAV x Space that is covered/ Area of the land x Rate of tax (inclusive of HB tax) x Occupancy MF value x Structure MF value x Age MF value x Usage MF value x Location MF value

How to pay KMC property tax online?

To use the online KMC property tax payment service, the taxpayer must know their Assessee number and registered cellphone number. The following are the processes for making an online tax payment:

  1. Go to the Kolkata Municipal Corporation’s official website and click on the link https://www.kmcgov.in/KMCPortal/HomeAction.do.
  2. The user will be sent to the Kolkata Municipal Corporation’s main website, where different alternatives will be provided on the right-hand side, from which the taxpayer should select “Online Payment.”
  3. When you select Property Tax, you will be presented with three alternatives.
  4. If you’re filling out the tax for the first time, you’ll have to enter all of the information manually, including the Assessee number, contact information, and so on. Once you’ve completed this, select the Pay option.
  5. You will be taken to the Kolkata municipal corporation tax payment gateway, where you can select how you want to pay your property tax online. It may be done using either online banking or a debit/credit card.

KMC Services

The Kolkata Municipal Corporation is in charge of delivering essential municipal services to Kolkata residents, such as lighting, roads, water supply, health, and education.

Kolkata Municipal Corporation (KMC), Departments

The following departments of the Kolkata Municipal Corporation provide different services to the residents of Kolkata, as stated below:

  • Advertisement
  • Amusement
  • Assessment & collection
  • Building
  • Bustee services
  • Car parking
  • Central records
  • Education
  • Election office
  • Electricity
  • Health
  • Finance and accounts
  • Law
  • License
  • Roads etc.

Kolkata Municipal Corporation’s new plan to make tax defaulters pay up

Kolkata Municipal Corporation officials have devised a novel technique of collecting KMC Kolkata property tax arrears from defaulters. The mayor has taken an unusual step by including all councillors in the KMC’s effort to recover property tax debts of Rs 2,200 crore. According to reports, councillors would be expected to inform residents about property tax defaulters in their area and humiliate them.

The mayor offered remission of interest up to 50% for individuals ready to pay all of their property tax dues at once by amending the KMC Act, 1980.

The mayor’s attempt to create a waiver plan for defaulters to pay their KMC property tax bill debts did not receive the anticipated reaction, according to KMC sources. As a result, he has chosen to entrust the collection of the dues to the councillors.

On the other hand, officials from the KMC’s assessment department said that the reaction to the waiver plan for property scheme defaulters has been positive, with applications for clearing tax debts piling up every day.

How to Assess your property tax on your own in Kolkata?

It is important to note that the Annual Valuation (AV) of distinct sections of a property with a single Assessee no. and different age categories, occupancy, structure, or usages must be assessed individually in the suitable format, stating them in other rows. Following that, the due tax is computed using the applicable tax rate on the entire annual valuation. Annual Valuation of Car Parking Spaces (if any) must be assessed individually following the suitable MF and added to the overall Annual Value for the calculation of due tax.

In the case of a property/flat/unit/apartment in a multiple flat building with different flat owners, proportionate common area for each flat must be calculated and assessed separately as per relevant MF and added to the Annual Value of the flat(s)/units(s)/apartment(s) for calculating payable tax as per applicable tax rate.

KMC Tax default penalty and Rebate

If you make any mistakes, you will be penalized. You might face a one-time penalty of up to 15% of the unpaid property tax amount, as well as a slew of other consequences. Residents in Kolkata can also get a significant discount on their KMC property tax payment if they pay on time.

Within a specific time frame, a 5% refund or quarterly payment option is available. Furthermore, the amount due after the refund is rounded off. However, this facility and refund are only available in most situations if the tax is paid in full for all four quarters.

This rebate program encourages people to pay their taxes on time and contribute to infrastructure maintenance.

How to calculate KMC property tax online?

To calculate property taxes, the Unit Area Assessment (UAA) system was enacted in March 2017. The owners can compute the property tax under the plan. The adoption of UAA guaranteed that the old system’s ambiguity and subjectivity were eliminated.

Unit Area Assessment – Important Points

Kolkata has 293 blocks and categories, ranging from A to G, according to the UAA system. The infrastructure, utilities, and market worth of the property are used to divide it. The new system covers around 6 lakh taxpayers.

Every category will be given a BUAV (Base Unit Are Value). The BUAV for category A will be the greatest, while the BUAV for category G will be the lowest.

The following is the formula used to compute the property tax under the UAA system:

Annual Tax = BUAV x Space that is covered/ Area of the land x Rate of tax (inclusive of HB tax) x Occupancy MF value x Structure MF value x Age MF value x Usage MF value x Location MF value

It’s critical that all UAA’s records be up to date and that no dues are owed. If there are any inaccuracies, they should be addressed as soon as possible.

How to find Assessee number online on the KMC website?

The following is a step-by-step method for locating the Assessee number:

  1. Go to https://www.kmcgov.in/KMCPortal/jsp/KMCPortalHome1.jsp for further information.
  2. Go to the section under “Online Services.”
  3. Select ‘Assessment-Collection’ from the drop-down menu.
  4. Select ‘Assessment Information Search’ from the drop-down menu.
  5. Enter the ward and street number to find the Assessee number.

PD Bill Details

Periodic Demand invoices are issued once a year based on the property’s most recent assessment.

Fresh/Supplementary Bills

Following a hearing, fresh/supplementary bills are produced to reflect any previously-released legislation changes. Following the initial evaluation of a property, new bills are also issued.

Letter of Intimation

The following tax bills may be included in a Letter of Intimation or KMC tax LOI issued in response to unpaid tax bills:

  • All unpaid new and additional bills will be subject to a penalty.
  • All unpaid periodic demand invoices issued previous to the current fiscal year are included.

Reprinting e-receipt post paying taxes

If you failed to save your e-receipt after paying your property tax on the KMC website, here’s how to get the KMC property tax paid receipt back:

  • Go to the KMC portal and search for the option to reprint an e-receipt in the left menu.
  • From the site menu, select the appropriate choice. The e-receipt for the particular waiver, pending dues, and your current payment may all be printed.
  • Include the required information, such as the date, the number of the assessee and so on. The receipt will then show up on the screen.

KMC contact on WhatsApp

The Kolkata Municipal Corporation plans to unveil its official WhatsApp number where taxpayers may request for their property assessment in order to expedite the tax assessment process. The municipal commissioner will be tracking this number and it will be 8335988888. A camp may be held by KMC for fast-tracking this process in the future.

KMC property tax waiver scheme

To make up for property tax revenue loss, the KMC implemented a tax waiver plan in October 2020. This only applies to individuals who received their KMC property tax bill by March 31, 2020, for the fiscal year 2019-20.

A taxpayer who clears their dues before February 28, 2021, is eligible for a 100 percent interest and penalty waiver under this plan. If you pay between March and May 2021, you will receive a 60 percent and 99 percent penalty waiver, respectively.

However, to be eligible for this program, you must apply before January 31, 2020. The applications will be collected at KMC’s tax-collecting locations, at the headquarters, and online. As of January 2021, the tax agency has received about 7000 applications, according to current data.

Updates on KMC property taxes

The KMC would set up camps at high-rise societies and housing complexes to expedite pending inspections and new unit mutations. Approximately 5,000 apartments have been located throughout Kolkata, where the mutation has been waiting for quite some time. On July 15, 2021, the initiative is anticipated to begin. The majority of the pending units are from newly constructed apartment buildings across both South and North Kolkata.

The 100% waiver program expires on March 31, 2021 but the KMC is considering launching a new interest waiver plan. Property taxpayers would receive a 60 percent discount on interest and penalties. Roughly 80% of people making applications under this scheme have paid their dues as per the KMC’s statement.

According to authorities, the KMC Kolkata property tax agency received about 7,000 city applications for the waiver program in January 2021, which was extended until January 31, 2021. The program for the waiver, which began on October 3, 2020, was set to conclude on December 31, 2020. It was however carried on since the civic authority got lower applications for the scheme’s benefits than planned.

At the same time, the civic authority is ferreting out bigger defaulters of taxes post its collection of a whopping Rs. 90 crore from a sizable 28,000 such people. These were individuals and entities filing for the 100% remission of interest on their amounts which remained unpaid for a long period of time. The KMC’s Revenue Department is already sending such letters as reminders to major defaulters. They are also issuing notices of legal action, including taking over properties, in case unpaid dues are not cleared. A special squad has also been made for tracking and weeding out all these defaulters, especially people owing Rs. 1 crore and more.

The Kolkata Municipal property tax plan for a waiver has got a great response from all taxpayers in Kolkata and surrounding areas. The collection has already touched Rs. 40 crore within just 45 days. 5,000 people have reportedly paid up the taxes after getting relief under this program. Defaulters will only have to pay the principal amount and not any penalty or interest as per this system. Authorities have also said that more than 5 lakh taxpayers are defaulters in Kolkata and 400 are the biggest ones, owing more than a huge Rs. 1,500 crores to the KMC.

You Might Also Like

Frequently Asked Questions (FAQ’s)

How can I find my assessee details and number online?

Select the Assessee Information Search option on the KMC official website to get the Assessee number.

If I do not pay property tax in Kolkata, what happens?

If you make any mistakes, you will be penalized. You might face a one-time penalty of up to 15% of the unpaid property tax amount, as well as a slew of other consequences.

How can I register myself on the KMC site?

You can do this by visiting the homepage and choosing the option named UAA Online Submission

How will I get duplicate bill for property tax?

Post signing in with the USER ID, you can check the tax amount pending on the website. 
After signing in with your User ID, you may examine the pending property tax on the KMC official website.

  • Super Quick & Easy
  • Stamped & E-Signed
  • Delivered Directly in Mailbox
Rent-Agreement

Exploring Options for Buying or Renting Property

Looking to buy or rent property
Related Category
Contact Our Real Estate Experts