Finance

Necessary Steps to Follow While Paying Kolkata Property Tax

Property owners in Kolkata are liable to pay a property tax every year. The Kolkata Municipal Corporation (KMC) collects this tax and uses the funds for vital civic facilities and services. Additionally, the Kolkata Municipal Corporation (Amendment) Bill was passed in 2016 to simplify the KMC property tax assessment and collection process. Resultantly, it gave power to the KMC to limit the increase and decrease in property tax and also enabled the self-assessment of an individual’s property tax. 

While paying property tax, owners should follow a few easy steps for a seamless procedure. 

KMC house tax payment process

Property owners can pay taxes in both online and offline modes. Here are the steps to follow for KMC tax online payment

  • One must visit KMC’s official website to pay property tax online. 
  • There will be an ‘Online Services’ tab in the left menu bar. Individuals must select the ‘assessment collection’ option from the drop-down menu. 
  • Taxpayers will now get the ‘Make Online Payment’ option, clicking on which they will be redirected to three options- Current PD, Outstanding LOI and Fresh Supplementary.
  • After selecting an appropriate option, one will land on a page where submission of assessee number, phone number and mail ID is necessary to proceed. 
  • Finally, an individual will reach the confirmation page where he or she needs to check the final payment details. 

After successful payment of KMC property tax online, one will receive an e-receipt. 

So, potential buyers planning to purchase a property in Kolkata can consider the aforementioned steps and pay property taxes in a hassle-free manner. 

Further, one can obtain a loan against property from reputed lending houses like Bajaj Finserv and get substantial loan amounts at competitive interest rates. Along with this, they can enjoy pre-approved loan offers and further simplify the loan application process. You can check your pre-approved offers by entering details like your name and mobile number. 

Individuals who are not comfortable to pay KMC property tax online can opt for an offline mode.

  • Taxpayers need to visit the respective municipal corporation. 
  • They must obtain an application form for a nominal fee.
  • Owners should fill up the application form in detail. 
  • Then, they can submit the form to the respective authority and proceed to tax payment.

After successful payment, individuals will receive a KMC property tax paid receipt. 

Property Tax Calculation

The new Unit Area Assessment (UAA) system for property tax calculation was launched in 2017 in the KMC. This new system allows owners to calculate their due property taxes. The formula for tax calculation is:

Annual tax = BUAV x Covered space/Land area x Location MF value x Usage MF value x Age MF value x Structure MF value x Occupancy MF value x Tax rate (including HB tax)

Where, 

BUAV= Base Unit Area Calculation

MF= Multiplicative Factor

HB tax= Howrah Bridge tax ( applicable to properties lying on specific wards)

Before paying a property tax, one should use the above formula to calculate the annual tax and avoid financial burden going forward.

Another effective way to receive substantial funds is by opting for a loan against property. However, one should consider a few things before applying for a LAP

Additionally, potential borrowers should know about the list of documents needed to apply for a loan against property

So, individuals planning to buy or who already own a property in Kolkata can consider the given piece while paying KMC property tax. Knowing about the steps of payment and other property tax details will help in avoiding last-minute hiccups. 

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