‘Residential houses upto 1000 sqft exempted; Linked with stamp duty of an area’
Srinagar, Feb 22 (KNO): Stating that the notified property tax rates in Jammu & Kashmir are lower than other States and Union Territories, the Jammu & Kashmir government on Wednesday said the tax implications are progressive in nature with minimum implication to small businesses and households.
In an informal interaction with journalists in Jammu, Principal Secretary, Housing & Urban Development Department, Rajesh Prasad said 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 said, as per news agency—Kashmir News Observer (KNO).
He further said J&K has notified lower property tax rates as compared to neighboring states/UT.
“Jammu & Kashmir is one of the last State/UT in India where property Tax was not imposed till date,” he said.
The bureaucrat said that property tax is linked with the stamp duty tax of an area, so property valuation of the different areas is captured differently. “A property in the old city area or Sarwal will be subjected to lower property tax compared to an upscale area like Gandhi Nagar,” he said.
He further said weightage to age of the property, use type and construction type, etc. is used to arrive at annual taxable value in a more comprehensive manner.
Under the new tax formula, residential houses with an area of up to 1000 sqft will be exempt from property taxes, he said.
“Residential property with built up area upto 1500 sqft are also discounted ensuring relief from Lower Income Group and Middle Income Group category residential houses,” he said .
He said the tax rates for other kind of residential properties have also been kept on the lower side vis-à-vis neighboring states/UT.
He said small commercial establishments especially shops upto size of 100sqft and 200 sqft are also provided relief with very minimal tax implications.
He said that most of the shops especially in neighbourhood areas and old markets fall in this category.
He said the property tax will not be burdening common citizen, as it is to be levied annually and can be paid in two equal installments,
“Further, as per Act 10% rebate can be availed by early submission of property tax,” he said.
He said the new property tax policy will help municipal bodies to generate avenue 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 the J&K. Revenue generated from property taxes will be used to improve infrastructure, build new parks and playgrounds, and maintain existing as well,” he said—(KNO)