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J&K to impose property tax from April 1

J&K to impose property tax from April 1
J&K to impose property tax from April 1

JAMMU: The Jammu and Kashmir government has approved the imposition of property tax in the urban local bodies (ULBs) of the union territory, thus ending the speculations on the matter rife for around a year now.

The property tax, 5% for residential property and 6% for non-residential property will be imposed from April 1.

Till now, Jammu and Kashmir was the only state/union territory in the union territory exempted from property tax, a status which it has lost on Tuesday, three years after the reorganization of the erstwhile state, followed by extension of a number of central laws to the union territory.

The Housing and Urban Development Department on Tuesday notified the rules for levy, assessment and collection of property tax in the Municipalities and Municipal Councils of Union Territory.


Notification For Property Tax I TheDispatch


The property tax on residential property would be 5% of the Taxable Annual Value (TAV) while the same on Non-Residential Property would be charged at 6% of TAV. The Taxable Annual Value itself would be calculated by multiplying as many as nine factors.


Simplified I Calculate your property tax here.

The property tax calculated would hold for a block of three years, with the first block commencing from 1 April 2023, and continuing to remain in force till 31 March 2026.

New buildings coming up after the April 1, would have their property tax liability calculated with reference to the 1 day of the relevant block, and irrespective of their having completed three years, their liability to tax would be calculated anew from the date of commencement of the new block of three years for the Corporation as a whole.

However, where a building is liable to property tax for only a part of the year, the tax due would be proportional to the number of completed months and parts of month not completed would be ignored.

A person liable to property tax would furnish to the Executive Officer the particulars of the property and the tax due thereon in Form-1 by 30th May of the financial year to which the return pertains, along with a proof of payment in Form-2 and acknowledgment of filing of return in Form-3.

One can make the payment in two installments and in such cases, a copy of the acknowledgment along with the proof of payment of the second installment of tax should be furnished by 30th November.

There is a penalty of Rs 100 or 1% of the tax due, whichever is higher, for every month of default, with the maximum penalty capped at Rs 1000, for delay in filing of return.

However, the government has exempted certain properties from payment of property tax.

These include vacant lands, not appurtenant to a structure/building 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.

Similarly, all the properties of the Municipality and all places of worship, including temples, masjids, gurudwaras, churches, ziarats, etc and cremation and burial grounds would be exempt from payment of property tax.

All properties owned by Government of India / UT Government would be exempted from payment of Property Tax. However, service charge at the rate 3% of the taxable annual value would be payable to the Municipality in respect of such properties.

The government said that it will constitute Jammu and Kashmir Property Tax Board for hearing the appeals, but till then, the Director Urban Local Body of the concerned division would be the appellate authority.


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J&K to impose property tax from April 1