Now, pay less as house tax bill gets split in two
In taxing times, here is a breather. Kolkata Municipal Corporation has decided to split your property tax into carpet area and amenities, which will bring down the amount you pay .
KMC is already moving to a system of dual taxation where flat owners will have the option of continuing with the current method (based on `reasonable rent’) or switching to Unit Area Assessment, which takes into account carpet area and taxes you on the location and amenities you enjoy . The split tax is meant to give home owners relief until the switchover, said an official. The mayoral council adopted this resolution on Friday and will place it in the KMC monthly meeting on July 27. “ After getting nod of the KMC House, we will notify it in newspapers and open the new scheme to flat owners,“ said an official.
Under current method of calculating property tax, KMC takes into consideration the super built-up area to calculate the annual valuation of a flat or house. This includes the open space and other amenities such as pool, garden, gym, elevators, auditorium and even the stairs.Home owners have to pay 40% of the annual valuation as tax.
In the new regime, the civic body will consider amenities separately and lower the tax component on these. For a 1,000 sq ft apartment, for instance, a home owner has to pay 40% tax only on the covered area (about 700750 sq ft). KMC will evaluate a value for the common area and amenities and create a separate slab for it, which may be taxed at 20%, a KMC official said.
“The exercise is aimed at simplifying property tax rates.Aflat owner now pays tax on the super built-up area. We will ensure that he pays tax only for the covered area at the current rate.The tax rate will be far less for the rest of the space. This will encourage flat owners to pay taxes on time,“ said a KMC assessment department official, adding that the tax relief will bring in more revenue.
Bartaman Patrika epaper 16-07-2016 : http://epaper.prabhatkhabar.com