Property Tax Calculation Made Simple In Kolkata

Kolkata Municipal Corporation (KMC) set to junk the century-old rent-based assessment and adopt the system of Unit Area Assessment (UAA), valuation and revaluation of properties will become a thing of the past.

Under Unit Area Assessment, Kolkata city has been carved into seven zones based on the price of land but also civic amenities that are offered. The base unit area value is high for posh areas that command premium value and have superior civic amenities which progressively reduces land cost and civic amenities decline.

Residential property of Kolkata located in Alipore, AJC Bose Road, Phoolbagan etc. Have been categorized in 'A' with base rate of 85/sq ft while those in Metiabruz and Garden Reach are the other end of the spectrum in 'G' category with base rate of 15/sq ft.

There are several other factors like location in terms of major roads, nature of residential property, occupancy status and age of building need to be factored into calculating the tax. Which ensures that houses that are next to major roads attract more tax than those in alleys. Those who residing in condominiums that have modern facilities like Club house, swimming pool etc will have to cough up more than twice the tax of a flat without any such amenities.

KMC officials want to introduce the UAA. The proposal will be placed in KMC House for approval. Property Tax payers will be given a month's time to express their opinion on the new system before it's notified. For those who feel the pinch of a huge jump in tax rates, there's a hardship committee to take note of the grievance and consider deferred payment.

Debabrata Majumdar, an MMIC and member of the anomaly review committee, felt that tax payers in middle income group were unlikely to be hit hard. Hope to augment revenue by spreading the tax net but at the same time they have spared the lower middle and middle class from the tax burden.

Municipal Valuation Committee formulated the parameters of the new method of taxation, there is still scope to make change to the proposed system if there are valid suggestions or objections in future.