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JammuJ&K Property Tax | 10 % Rebate For Early Submission, Can Be...

J&K Property Tax | 10 % Rebate For Early Submission, Can Be Paid In 2 Equal Instalments: Prasad

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: Stating that there is a long way to go to improve financial health of Jammu and Housing and Urban Development Department, Principal Secretary, H Rajesh Prasad on Wednesday said that imposition of a property tax is mandatory likewise other parts of the country while ten percent of rebate can be availed by those early submitting the tax, which can also be paid in two equal instalments. “There is a long way to go to improve the financial structure and make them surplus but, we have started with a baby step,” Prasad told a battery of mediapersons in an interaction here at Convention Centre.
“As Property Tax is to be levied annually and can be paid in two equal instalments and it will not be burdening common citizen,” said the Principal Secretary adding, “Further, as per Act 10 percent rebate can be availed by early submission of Property Tax.” He was flanked by Commissioner, Jammu Municipal Corporation, Rahul Yadav, Joint Director, Jammu, DIPR, Sapna Kotwal and other officers.
He further said that Rs 115 cr is the income generated by the department against operational expenditure of Rs 850 crores.
Prasad further added that with Property Tax imposition comes into force, Rs 150 crores estimated revenue collection is expected in 2023-24, adding, “this step is in the benefit of the people and no misinformation or mis-campaign be launched to mislead masses.”
Interest of the poor and other sections of the society, will also be taken into consideration, said Prasad. He further added that a robust and effective System of local self-government is foundational to the effective functioning of a democracy and a fundamental enabling condition for such a system to exist is to have adequate finances at the disposal of the institutions of self-government, and the more such finances are mobilised at the local level by these governments, the better for their effective functioning. “One of the essential pillars of municipal financing the over is property taxes. The Government of and the Finance Commissions set up by it, have been strongly recommending tapping this resource from time to time,” he added.
“Accordingly, the Government of Jammu and Kashmir has notified the property tax with the aim to improve financial health of Municipal bodies to enable them to provide better Municipal services. Tax rates in UT of J&K are notified in such a way that Tax implications are progressive in nature with minimum implication to small businesses and Households,” he added. Prasad said that as property Tax is being imposed for the first time in J&K and added, “J&K has notified lower property tax rates as compared to neighbouring states and UTs.” Notably, Jammu and Kashmir is one of the last State and UT in India where property Tax was not imposed till date. “Property Tax is linked with Stamp duty Tax of the area so property valuation of the different area is captured differently with Property in Old city area or Sarwal will be subject to lower property tax compared to upscale area like Gandhi Nagar. Further, weightage to age of property, use type and construction type etc is used to arrive on Annual Taxable Value in a more comprehensive manner,” he said. Under the new tax formula, he said that residential houses with an area of up to 1000 sqft will be exempt from property taxes while residential property with build up area upto 1500 sqft are also discounted ensuring relief for LIG and MIG category residential houses. It is pertinent to mention that most of the shops especially in neighbourhood areas and old markets fall in this category. “This new Property Tax policy will help municipal bodies to generate revenue for better municipal services with minimum Tax implications to residents. Better municipal services are expected to attract more investment and encourage more people to set up businesses in Jammu and Kashmir,” he said. Prasad added that revenue generated from property taxes will be used to improve infrastructure, build new parks and playgrounds, and maintain existing facilities, significantly enhancing the services provided by Municipal bodies.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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