Jammu Kashmir Property Tax 2023: Explained

Jammu Kashmir Property Tax 2023: Starting April 1, 2023, all residents of Jammu and Kashmir residing in municipal areas will be required to pay a property tax on their residential and non-residential properties. The tax will be levied at the rate of five percent and six percent of the Taxable Annual Value (TAV), respectively. Read on to understand more about the new property tax policy imposed for the first time in the Union Territory.

Why property tax in J&K?

Property tax is being levied across the world by Municipalities to augment their resources. J&K was the only State/UT in the country which did not have. With poor finances, the ULBs across the UT were not able to deliver to their fullest! The revenue from other sources accounted for less than 15% of their operational expenses. Where are the funds for development available? Do we wish to remain entangled in the low revenue, low service level spirals? Was the any case for not collecting it in J&K? Certainly not!

What is J&K Property Tax?

A robust and effective system of local self-government is foundational to the effective functioning of a democracy. A fundamental enabling condition for such a system to exist is to have adequate finances at the disposal of the institutions of self-government, and the more such finances are mobilized at the local level by these governments, the better for their effective functioning. One of the essential pillars of municipal financing the world over is property taxes.

Government of India and the Finance Commissions set up by it, have been strongly recommending tapping this resource from time to time. It is with this background, and with an intend to strengthen out ULBs and ramp up the urban development for the betterment of common masses, the Government has decided to impose property tax in the Union Territory of Jammu and Kashmir. Is any development possible without adequate resources? Certainly not.

Jammu Kashmir Property Tax Formula:

Taxable Annual Value (TAV) = MTF x LVF x ARF x FF x UTF x CTF x AGF x SF x OSF

But calculating the individual parameters in the complex multiplication is also challenging. It looks more like an inorganic chemistry chain reaction rather than a mathematical calculation.

To Know more about terms (TAV) = MTF x LVF x ARF x FF x UTF x CTF x AGF x SF x OSF Read our detailed Article on J&K Property Tax Calculator.

Property Tax Calculator, Click On Below Link

Property Tax Calculator

In a statement LG Manoj Sinha said that our cities must witness rapid development and emerge as engines of growth. “For that financial self-sustainability of cities is necessary. Property tax in J&K will be one of the lowest in the country and will be used for improving public amenities in J&K.”

“Implementation shall be done in consultation with general public. Common citizens’ interests will be protected,” he added.

According to a notification issued by Housing and Urban Development department, in the 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.

“These rules shall be called Jammu and Kashmir Property Tax (Other Municipalities) Rules, 2023. These shall come into force from 1st of April, 2023.”

Some Important Points About J&K Property Tax

  1. Tax Rates in J&K is one of the lowest in the country.
  2. Tax to be levied annually and not monthly.
  3. Tax Implication is linked with Stamp Duty Rates.
  4. Tax collected shall be deposited in the Bank Account of the concerned Municipality.
  5. Tax collected to be utilized by Municipalities for improving infrastructure/services in the Town.
  6. Houses and Apartments up to 1000 sqft, Agricultural land EXEMPTED.
  7. Tax is progressive in nature with minimal implications to small households and businesses.
  8. All places of worship, including temples, masjids, gurudwaras, churches, ziarats and Cremation / Burial Grounds EXEMPTED
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