UT Admn may exempt 200 sqft shops, 1500 sqft houses
Exemptions to reduce revenue from Rs 350 cr to Rs 150 cr
Mohinder Verma
JAMMU, Aug 20: National Institution for Transforming India (NITI) Aayog has conveyed to the Government of Union Territory of Jammu and Kashmir that it is not in the favour of further delay in the implementation of Property Tax and prevailing situation may create hurdles in timely release of funds to the Urban Local Bodies.
Meanwhile, Government of J&K UT is likely to give further exemptions if the recommendations in this regard made up by a committee of officers are approved by the Administrative Council headed by Lieutenant Governor Manoj Sinha. The major exemptions include no Property Tax on shops up to 200 square feet of built-up area and houses having built up area up to 1500 square feet.
Reliable sources told EXCELSIOR that NITI Aayog has conveyed its concern over delay in the implementation of Property Tax to the Jammu and Kashmir Union Territory Government.
“The repeated extensions in the implementation of Property Tax provision of the Municipal Laws will further deprive the Urban Local Bodies of huge grants which are linked with this mandatory exercise”, sources said quoting the observations of NITI Aayog, adding “ever since their establishment by way of formal elections in January 2019, the Urban Local Bodies have not received grants linked with major reform of imposition of Property Tax although their term is going to expire in next few months”.
Jammu and Kashmir Property Tax (Municipal Corporation) and Other Municipalities Rules, 2023 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.
In the first week of current month, the Government again extended date for payment of Property Tax till August 31, 2023 and now keeping in view the concern expressed by the NITI Aayog the Government either may not consider further extension or may grant not much timeframe for compliance of the Rules.
Meanwhile, if the recommendations made by a committee of officers are accepted by the Administrative Council, the Government may exempt shops having 200 square feet area and houses having 1500 square feet built up area from the Property Tax, sources informed.
Moreover, there may not be any tax even on open parking space inside house of any plot size and vacant plots within the areas falling under the jurisdiction of Urban Local Bodies—Municipal Corporations, Municipal Councils and Municipal Committees, sources said, adding “even buildings of Central and UT Governments besides that of Municipalities will have to pay 1/3rd of the total calculated Property Tax as Service Charge only”.
This is being done in exercise of the powers conferred on the Government under Jammu and Kashmir Municipal Corporation Act, 2000 and Jammu and Kashmir Municipal Act, 2000.
According to the rough estimates, without any relaxations proposed ever since the announcement of Rules in February 2023, the Government was expecting around Rs 350 crore revenue generation by imposing Property Tax.
“However, after all sorts of relaxations proposed till date the Government will get only Rs 150 crore on imposition of Property Tax as such the initiatives are people-friendly”, sources informed.
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