Srinagar, June 7: Are you still wondering how, and to what extent, are you supposed to pay Property Tax for your properties in J&K?
Well, the Housing and Urban Development Department is soon to lauch a digital app, which will not only help in calculating the actual amount of tax to be paid but also facilitate online payments.
So, what is the deadline for cost assessment, payment and filing of returns?
While the digital app to be soon launched is expected to help cost estimation and online payment, the payment date of the first installment and filing of returns has now been set as 31st July.
Residents of Jammu and Kashmir will have to pay Property Tax for their properties and file returns for the current financial year before the concerned authorities by July 31st, 2023.
Does this mean that the effective date of payments annmd annual assessment has been revised?
Yes. This development comes after the Housing and Urban Development Department added a provison in the Jammu and Kashmir Property Tax (Municipal Corporation) and Other Municipalities Rules, 2023 recently.
The department has added a provison to Rule 5 of the Jammu and Kashmir Property Tax (Municipal Corporation) Rules, 2023, according to which – “the particulars of the property and the tax due thereon for the financial year 2023-24 shall be furnished in Form-1 by July 31, 2023”.
Pertinently, the Property Tax Rules for Jammu & Kashmir were notified vide two different notifications dated February 21, 2023.
As per the original Rule 5, a person was liable to Property Tax shall furnish to the designated/authorized officer the particulars of the property and the tax due thereon in Form-1 by May 30 of the financial year to which the return pertains.
As per the new rules, a copy of the acknowledgement along with the proof of payment of the second installment of tax shall be furnished by November 30 in cases where the payment is made in two installments.
Would there be any penalties of payments are not done on time?
As per the Rule 6 of the notified rules, the failure to file return in due time, unless prevented by sufficient cause, shall, without any prejudice to the interest due for delay in payment, make the person from whom it is due, liable to a penalty of Rs 100 or 1% of the tax due, whichever is higher for every month of default. The maximum penalty shall not exceed Rs 1000.
Would the tax be applicable on vacant lands as well?
As per the Rules, 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.
Similarly, all the properties of Municipal Corporation and other Municipalities and all the places of worship including temples, Masjids, Gurudwaras, churches, Ziarats etc and cremation and burial grounds shall be exempt from payment of Property Tax.
Moreover, all properties owned by 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 in respect of such properties.
But what about the Property Tax Board which is supposed to take key decisions on the tax regime?
Jammu and Kashmir Property Tax Board, as enshrined in the Jammu and Kashmir Property Tax Board Act, 2013, is yet to be constituted by the Government. It has been communicated now that the concerned reference in Section 132 and 133 of the Act shall be deemed as a reference to the Divisional Commissioner of the concerned division.
