KMC Property Tax Calculation and Payment Guide

If an individual owns a residential or commercial property within KMC’s jurisdiction, go through this article as it summarises the calculation and payment guide for KMC property tax.

Payment of property tax by the property owners is a legal mandate to enjoy civic amenities provided by the respective municipalities. Non-payment of this annual tax attracts a substantial penalty and demands timely payment.

How to calculate KMC property tax?

Kolkata Municipal Corporation (Amendment) Bill 2016 was passed on 15th December 2016, simplifying the collection and assessment of property tax. This new transparent system allows residential property owners to compute property tax through UAA and MFS.

Before moving ahead with the formula to calculate property tax in Kolkata, it is important to know about UAA and MFAs.

What is UAA?

UAA or Unit Area Assessment eliminated the complexities involved in the previous method, Annual Rateable Value (ARV). This new method divides the city into 293 blocks. These blocks further fall under A to G categories. Base Unit Area Value is an annual value per square foot and is assigned to each category (A, B, C, D, E, F to G). This categorization of property under this method ensures that all properties are taxed uniformly, eradicating additional tax burden over property owners.

What is MFS?

MFS or Multiplicative Factors System is an important part to compute Kolkata Municipal Corporation property tax and considers the following factors during calculation –

  • Usage of the property
  • Property’s location and age
  • Type of occupancy and nature of the structure

Considering the factors mentioned above, KMC levies a flat tax rate. For example, property placed in a favourable locality will demand a higher property tax than a property located in a lesser popular area.

Formula to compute KMC house tax

Annual property tax = BUAV x Covered space or Land area x Location MF value x Usage MF value x Age MF value x Structure MF value x Occupancy MF value x Rate of tax (including HB tax)

  • HB tax means Howrah Bridge tax and is levied on the property located near this particular ward.
  • Individuals can find the values of BAUV and MF on the official website of Kolkata Municipal Corporation.

Steps to pay KMC property tax online and offline

Individuals can opt for both online and offline payment of property tax.

In case of KMC tax online payment, follow the step-wise guide mentioned below:

Step 1: Visit the official website of KMC. Select ‘Online Services’ and click on the assessment collection.

Step 2: Navigate to the assessment homepage and select ‘Make Online Payment’. Individuals need to choose from the three options once selecting that payment tab-

  • Current PD

Periodic demand bills are based on the property’s final value and are issued annually.

  • Outstanding Letter of Intimation

These are for unpaid F/S or PD bills.

  • Fresh supplementary

Fresh supplementary bills are issued if the court directs a change in the former bill or on the property’s initial valuation.

Once selecting the desired option, type other details, such as assessee number, contact details etc.

Step 3: Pay the applicable amount displayed on the screen and collect the e-receipt.

Offline payment procedure

Take a look at the steps mentioned below to pay property tax in Kolkata offline –

  • Visit the KMC directly and ask for an application form by paying a nominal fee.
  • Fill in the application form with relevant information, such as name, assessee number etc., and submit it.
  • Collect the tax receipt after submitting the application form.

Keep this receipt as this serves as proof of property tax payment. This enables an individual to continue enjoying property ownership. Owners can also leverage their property to obtain a sizeable fund under a loan against property.

Several financial institutions offer this secured credit at an attractive interest rate. Existing customers can apply for a loan against property and seek pre-approved offers.

Pre-approved offers simplify the loan application process and are available on home loans, business loans etc. Willing candidates can provide their names and contact numbers to check their pre-approved offers.

However, check the list of documents needed to apply for a loan against property on the official website of a preferred financial institution to avoid confusion while applying.

Thus, utilise the flexibility of the new UAA system to self-assess the KMC property tax. Additionally, individuals can use both online and offline methods as per their convenience to pay property tax in Kolkata.