Decision on simplified formula, reduction in factors shortly
*H&UDD issues notifications making changes in proviso
Mohinder Verma
JAMMU, Aug 9: Government of Union Territory of Jammu and Kashmir has extended the date for payment of Property Tax and filing of return for the current financial year till August 31 while as final decision on changes in formula for levy of tax and reduction in factors will be taken shortly at the highest level.
EXCELSIOR in its edition dated August 2, 2023 had exclusively reported that Government was all set to extend the date for payment of Property Tax keeping in view discussions being held on several important factors.
“In exercise of the powers conferred by Section 143A of the Jammu and Kashmir Municipal Corporation Act, 2000, the Government hereby directs that in proviso to Rule 5 of the Jammu and Kashmir Property Tax (Municipal Corporation) Rules, 2023, for the figures and words “31st July”, the figures and words “31st of August 2023″ shall be substituted”, read a notification issued by Principal Secretary to the Government, Housing and Urban Development Department Prashant Goyal.
Similar notification has also been issued in respect of other Municipalities in the Union Territory of Jammu and Kashmir.
The J&K Property Tax 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 the Housing and Urban Development Department added a proviso to Rule 5 of the Jammu and Kashmir Property Tax (Municipal Corporation) Rules, 2023 thereby extending the date for payment of Property Tax till July 31, 2023 and now the same has been further extended to August 31.
According to the official sources, decision on certain people friendly changes being carried out in the formula for calculation of Property Tax and other important factors will be taken shortly at the highest level as suggestions in this regard have already been made by a high-level committee.
As already reported by EXCELSIOR, the Government is in the process of taking decision about levying Property Tax only in respect of built-up area and minimizing the discretion of the tax collectors.
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 per Rule 12, 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.
All the properties of Municipal Corporations and other Municipalities and all the places of worship including Temples, Masjids, Gurudwaras, Churches, Ziarats etc and cremation and burial grounds are exempted 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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