Tax likely to be applicable on built-up area only
Formula being simplified, factors likely to be reduced
Mohinder Verma
JAMMU, Aug 1: The Government of Union Territory of Jammu and Kashmir is all set to extend date for payment of Property Tax and filing of return for the current financial year till August 30 in the light of people-friendly changes being brought in the formula for levy of tax and other important factors.
A notification in this regard is likely to be issued within next few days whereby further amendments will be carried out in Jammu and Kashmir Property Tax (Municipal Corporation) and Other Municipalities Rules, 2023.
These Rules were notified vide two different notifications dated February 21, 2023 in exercise of the powers conferred by Section 143A of the Jammu and Kashmir Municipal Corporation Act, 2000 and Section 71-A of the Jammu and Kashmir Municipal Act, 2000 for levy, assessment and collection of Property Tax in the Municipal Corporations, Municipalities and Municipal Councils of the Union Territory.
In Rule 5, it was mentioned that a person liable to Property Tax shall furnish to the designated/authorized officer the particulars of the property and the tax due thereon in Form-1 by May 30 of the financial year to which the return pertains. It shall be accompanied by a proof of payment in Form-2 and acknowledgment of filing of return shall be in Form-3.
However, in the month of June a proviso was added to Rule 5 of the Rules mentioning that the particulars of the property and the tax due thereon for the financial year 2023-24 shall be furnished in Form-1 by July 31, 2023.
“Now, the date is being further extended to August 30 especially in the light of the fact that certain people friendly changes are being carried out in the formula for calculation of Property Tax and other important factors”, sources said while disclosing that as against earlier nine factors the Government is seriously considering to reduce the same to four only for the convenience of the people.
They further said, “the Government is also planning to levy Property Tax only in respect of built-up area. Moreover, the discretion of the tax collectors will get minimized in case the ongoing deliberations in this regard get approval of the competent authority. The clear image on all these aspects will emerge within next couple of days”.
As per Rule 6, the failure to file return in due time, unless prevented by sufficient cause, shall, without any prejudice to the interest due for delay in payment, make the person from whom it is due, liable to a penalty of Rs 100 or 1% of the tax due, whichever is higher for every month of default. The maximum penalty shall not exceed Rs 1000.
As Jammu and Kashmir Property Tax Board in terms of the Jammu and Kashmir Property Tax Board Act, 2013 is yet to be constituted by the Government, the reference thereto in Sections 132 and 133 of the Act shall be deemed as a reference to the Divisional Commissioner of the concerned division.
As per the Rules, vacant lands, not appurtenant to a structure/building shall be exempted from Property Tax if there’s a Master Plan in force in the area under which any construction/ development on such vacant land is disallowed or if they have been put to agricultural use as per 6-monthly cropping surveys of the Revenue Department.
As per the Rules, all the properties of Municipal Corporation and other Municipalities and all the places of worship including temples, Masjids, Gurudwaras, Churches, Ziarats etc and cremation and burial grounds shall be exempt from payment of Property Tax. Likewise, all properties owned by Government of India/UT Government shall be exempted from payment of Property Tax. However, service charge at the rate of 3% of the taxable annual value shall be payable in respect of such properties.
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