KMC Property Tax

Kolkata Municipality Corporation(KMC) covers more than 6 lakh property taxpayers of Kolkata. The citizens living in Kolkata have to pay tax on property and vacant land under Section 171 of the Kolkata Municipal Corporation Act, 1980. Through KMC property tax, the local government collects revenue from its citizens and invests it in improving civic bodies like parks, streets, alongside beautification of the city, etc.

All constructions, including government properties, slum-settlements come under the purview of Kolkata Municipality Corporation property tax. Citizens have to pay property tax every financial year, starting in April and ending in March.

It is imperative for citizens to check their respective tax dues and clear them before the year ends. They can visit the official website of KMC and avail online self-services.

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Required documents for Kolkata property tax payment

To pay property tax in Kolkata, you will need the following documents:

• Property ownership proof: A copy of the property title deed or sale agreement to confirm ownership.

• Aadhaar card: A valid Aadhaar card for identity verification of the property owner.

• Property address details: The complete address of the property for accurate tax assessment.

• Previous property tax receipts: Copies of past property tax payment receipts, if available.

• Property measurement details: Documents specifying the land or building measurements for tax calculation.

• PAN card: A valid PAN card for tax assessment and compliance purposes.

• Occupancy certificate: Needed for newly constructed properties or properties undergoing renovation.

• Recent utility bills: Copies of electricity or water bills to validate the residency status of the property.

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Follow the steps below to complete Kolkata Municipal Corporation property tax payment online.

In March 2017, KMC introduced an improvised Unit Area Assessment (UAA) system to calculate property tax in Kolkata. The formula they use to calculate KMC property tax is mentioned below.

Kolkata Municipality Property Tax = Base value * Age factor * Built-up area * Building type * Floor factor * Category of use

Consequently, the property tax amount in Kolkata may vary if the property is rented or self-occupied, multi-storeyed or single floor, commercial or residential, etc. Using this formula, citizens can estimate their property tax for a particular year. For more convenience, taxpayers can also use the online Kolkata property tax calculator and derive their payable almost instantly.

The entered details should, however, be error-free. Note that every unit used in that property tax formula has a different weightage that one needs to know. KMC property tax regime also follows Multiplicative Factors (MFs) concept, which determines the various tax slabs even if the houses are located in a same block.

For instance, KMC divided its governing area into 7 blocks from A to G, and each of them draws different Base Unit Area Value per sq. ft. It looks something like this.

Here, block G denotes slums/ ‘bustee’/ ‘thika’-tenanted areas. Also, note that property tax rate would not be same for houses under same blocks. The occupancy status, age of buildings, etc., also play a major role in determining final tax bills.

Depending on these factors, KMC property tax rate is determined. It ranges from 6% to 20%. For instance, properties with an annual value of less than Rs. 30000 attract 15% property tax and likes.

Before paying property tax to KMC, make sure to check there is no due amount included. For any discrepancies, contact through KMC’s official website.

Rebates on KMC tax

Kolkata residents can also enjoy a substantial rebate on KMC property tax payment if the payment is made on time. A rebate of 5% or facility of quarterly payment is available within a specified period. Moreover, the amount payable after rebate is also rounded off. However, in most cases, this facility and rebate are applicable when one pays the tax for all four quarters at a time.

This rebate facility encourages more citizens to pay property tax on time and contribute to maintaining the city’s infrastructure.

Exemption of KMC tax payments

Besides rebate, KMC also introduced a 100% interest and penalty to property tax waiver scheme, which expired on March 2021. With this facility, property tax defaulters had to pay only the due principal and not interest or penalty. As per this waiver scheme, tax defaulters relieved 60% on interest and 99% on penalty, irrespective of the outstanding amount.

KMC initiated this scheme to recover the due amount from citizens. As per an official report, they owed property tax worth almost Rs. 1500 crore from nearly 400 major defaulters.

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Besides this provision, typically, Grade-I and Grade-II heritage buildings are exempted from making KMC tax payment if no new modifications and renovations are made.

However, in case a citizen fails to pay property tax before due date, he/ she is liable to pay a penalty, and interest is levied on outstanding amount. In such cases, KMC issues a Letter of Appreciation which may include following details.

• Fresh unpaid and supplementary bills
• Periodic unpaid demand bills issued before current financial year

Residents of Kolkata should keep these pointers in mind and simplify KMC property tax payment. They can also be aware of the applicable rebate and exemptions and enjoy higher savings on payment.

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