Introduction
Property tax in Jammu and Kashmir is determined based on the Taxable Annual Value (TAV). The TAV is calculated by multiplying the property’s Annual Rental Value (ARV) by a certain percentage. The local government determines this percentage, which can vary depending on the type and location of the property. Please read the article to learn more about the property tax system and its calculation method.
Table of Contents
- New Property Tax System in Jammu and Kashmir
- How To Calculate Jammu and Kashmir Property Tax?
- Jammu and Kashmir Property Tax Payable for Residential Properties
- Property Tax Payable on Commercial Properties
- How To Pay Property Tax in Jammu and Kashmir?
Jammu and Kashmir announced the imposition of property tax in all municipal areas on April 1, 2023. Tax rates of 5% for residential property annual value and 6% for commercial property TAV have been set with exemptions for specific categories of properties, such as religious institutions and educational facilities.
The tax is expected to generate revenue for local municipalities to improve infrastructure and public services in the region. This move is part of the government’s efforts to increase revenue collection and promote regional development. Property owners must comply with the new tax regulations to avoid penalties or fines.
New Property Tax System in Jammu and Kashmir
The government expects to collect Rs 150 crores from the newly levied properties taxes in Jammu & Kashmir for the upcoming financial year 2024. Housing and Urban Development Department Principal Secretary H. Rajesh Prasad declared. The property tax aims to generate revenue for developing infrastructure and public services in the region.
This move is part of the government’s efforts to boost economic growth and improve living standards in Jammu & Kashmir. The government plans to use the funds to enhance the region’s basic amenities, such as water supply and waste management. This initiative aligns with the government’s vision to promote sustainable development and progress in Jammu & Kashmir.
How To Calculate Jammu and Kashmir Property Tax?
Tax rates in the Union Territory of Jammu and Kashmir are set so that tax implications are progressive, with minimal impact on small businesses and households. This allows for a fair distribution of tax burdens based on income levels, ensuring that those who can afford to pay more contribute a higher percentage of their income.
The property tax is linked to the stamp duty tax for the area. The property value of the different regions is captured differently. The property’s age, type of use, and construction are used to calculate the annual taxable value more comprehensively.
Jammu and Kashmir Property Tax Payable for Residential Properties
Property tax payable on residential properties in Jammu and Kashmir is calculated based on the annual rental value of the properties. The local government determines this value, which may vary depending on the location and size of the property.
Property owners must properly understand how this tax is calculated to budget for it each year. Failure to pay property tax on time may result in penalties and interest being added to the amount due. Property owners should consider it their responsibility to pay property taxes on time.
| Property Type | Tax Payable (Rs) |
|---|---|
| Residential house (up to 1,000 sq ft) | 0 |
| Residential apartment or house (1,500 sq ft) | 100-1,150 |
| Residential property (2,000 sq ft) | 225-2,500 |
Property Tax Payable on Commercial Properties
We have included below the property taxes details payable on commercial properties in Jammu and Kashmir.
| Property Type | Tax Payable (Rs) |
|---|---|
| Shop (100 sq ft) | 50-600 |
| Shop (200 sq ft) | 150-1,800 |
How To Pay Property Tax in Jammu and Kashmir?
Jammu Cantonment Board is an online payment platform. Here, citizens can calculate property taxes online. They can also make payments conveniently through various online payment methods. This platform aims to streamline the tax payment process and provide a hassle-free experience for the residents of Jammu. They can pay and download the receipt. Follow these steps to make a property tax payment:
- Visit the Jammu Cantonment Board website
- On the left side of the homepage, go to the ‘Public Services’ section and click on ‘Property Tax.’
- On the next page, click the ‘Apply’ button
- You will be redirected to the ‘eChhawani’ website. Select your preferred language and click ‘Continue.’
- First-time users need to register themselves by entering their mobile number, name, and cantonment
- After successful registration, enter your mobile number and click ‘Continue’ to enter OTP
- Select ‘Search Property’.
- After entering the details, you will get the property tax online. Download the bill for your reference
- You can pay the property tax through the portal or the property tax bill payment link through SMS and your registered email ID.
- After making the payment, you can download the receipt for reference.
Conclusion
Jammu and Kashmir Property Tax has introduced a new system. It aims to streamline the tax collection process and ensure fair assessment of property values. This new system is expected to bring transparency and efficiency to the region’s taxation system. The new tax regime includes measures to prevent tax evasion and ensure compliance from property owners. For more information, visit openplot.
Also read: Jammu and Kashmir: Stamp Duty and Registration Charges in 2024