Jammu & Kashmir Govt. Imposes Property Tax In Municipal Areas From April 1, 2023

The Housing and Urban Development Department of Jammu and Kashmir has notified the Jammu and Kashmir Property Tax (Other Municipalities) Rules, 2023, which prescribe the rules for the levy, assessment, and collection of property tax in the municipalities and municipal councils of the Union Territory of Jammu and Kashmir.

The Rules shall be effective from April 1, 2023.

The property tax applicable to residential and non-residential property shall be 5% and 6% of the taxable annual value (TAV), respectively.

The property tax calculated in respect of a building shall hold for a block of three years unless any change to the such calculation is necessitated on account of the circumstances envisaged in the Act for allowing revision in such calculation. Beginning on April 1, 2023, the first block will be in effect until March 31, 2026. Following that, the blocks must be calculated similarly.

Without affecting the interest due for payment delays, failure to file a return by the due date will subject the person from whom it is due to a penalty of Rs 100 or 1% of the tax due, whichever is higher, for each month of default. The maximum fine cannot be greater than Rs. 1000.

Lands On Which Property Tax Is Not Payable

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 use according to the Revenue Department's six-monthly cropping surveys, vacant lands that are not attached to a structure or building are exempt from property tax.

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 or a state government are exempt from property tax. However, a service charge at the rate of 3% of the taxable annual value shall be payable to the municipality in respect of such properties.

Notification No. S.O. 87

Date: 21.02.2023

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