Property Tax to be Imposed in Municipal Area of Jammu & Kashmir from April 1 [Read Notification]

The Housing and Urban Development Department of Jammu and Kashmir has proposed to impose property tax in Municipal Areas under the Jammu and Kashmir Property Tax (Other Municipalities) Rules, 2023.

The rules prescribe certain rules for the levy, assessment, and collection of property tax in the municipalities and municipal councils of the Union Territory of Jammu and Kashmir, effective from 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 per cent and six per cent of the Taxable Annual Value (TAV), respectively.

The Government notified the rule in the exercise of the power conferred by section 71A of the Jammu and Kashmir Municipal Act 2000. In October 2020, the ministry of home affairs (MHA) empowered the Jammu and Kashmir administration to impose the property tax after an amendment to the J&K Municipal Act, 2000, and J&K Municipal Corporation Act, 2000 through the J&K Reorganisation (Adaption of State Laws) order, 2020.

This significant change was due to the losses suffered because of the restrictions imposed from August 5 that year and subsequent COVID-19-induced lockdowns. The Administrative Council approved the proposal with the direction that the proposed property tax, which will take effect on April 1 2023, shall be levied at half of the proposed formula.

As per the rules of notification, a person liable to the property tax shall be liable to furnish to the officer authorised on this behalf particulars of property and tax due by May 30 financial year. The second instalment of tax shall be furnished by November 30 along with proof of receipt of the first instalment. In case of failure to pay tax, a penalty of Rs 100 or one per cent will be imposed, adding the maximum penalty shall not exceed Rs 1,000.

There is a provision for inspection, assessment and reassessment in the Act. It said there is a provision for appeal to be made to the director of local bodies until the board in this direction is set up.

Exemption from payment of property tax.

• Vacant lands, not appurtenant to a structure/building shall be exempt 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 the Municipality and all places of worship, including temples, masjids, gurudwaras, churches, ziarats, etc and cremation and burial grounds shall be exempt from payment of property tax.
• All properties owned by the 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 to the Municipality in respect of such properties. If there is a master plan in effect in the area that forbids construction or development on such vacant land, or if they have been put to agricultural

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