Property tax on ready-to-move-in flat in kolkata

Q: What are the taxes to be paid on buying a ready-to-move flat in Kolkata? And what all documents one should check before paying initial amount?

Krishna M, Bangalore

4th September 2018

Property Tax in Majherhat, Kolkata

buying properties in kolkata

property tax in kolkata

property tax rate in kolkata 2018-19

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Documents required for buying ready-to-move-in properties - you should check the original sale deed and entire chain of documents right from the Mother Deed and Possession Letter up to the current sellers sale deed. You should also check society membership and whether property tax and all utility & maintenance bills are paid up to date.

For under-construction property - In case of under-construction property, you must check whether the builder has received all approvals. You should carefully study all terms and conditions of Allotment Letter and Builder - Buyer Agreement.

Diptarishi dev, Kolkata

11th September 2018

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Yes, as per the Kolkata Municipal Corporation (Amendment) Bill 2016 was passed, to simplify the assessment and collection of property tax and make the entire process more transparent. It empowered the KMC to limit the increase and decrease in property tax, to a certain extent and also enable self-assessment of ones property tax.

Thus, the annual property tax under the UAA system is calculated, using the following formula -
Annual 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)
Note - HB tax refers to Howrah Bridge tax, which is applicable on properties lying in specific wards.

bhashkar poddar, Kolkata

11th September 2018

Comment

Hi Krishna,
In March 2017, the new Unit Area Assessment (UAA) system for property tax calculation, was passed in the KMC. Under the UAA system, the entire city of Kolkata is divided into 293 blocks. These blocks are classified into seven categories (A, B, C, D, E, F and G), on the basis of the market value, infrastructure, facilities, etc., available in each block. For each category (A, B, C, etc.) an annual value per sq ft, known as the Base Unit Area Value (BUAV) is assigned. Category - A has the highest BUAV and - G the lowest. This ensures that all the properties that fall under the same category or lie within the same block, are taxed equally. An assesses needs to pay only for the area that he or she lives in and not for adjacent areas like gardens.

Diptarishi dev, Kolkata

11th September 2018

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