The Jammu and Kashmir government has announced the rules for imposing, assessing, and collecting property tax from residents in the state.
The Jammu Kashmir administration has announced the rules for Impose, assessment and collection of property tax from the residents of Jammu Kashmir.
HERE’S is the main points of Property tax to Understand Calculation
The rate of property tax varies depending on the type of construction.
RCC construction: 1
Pucca (without RCC) construction: 0.9
Prefabricated structure: 0.8, 0.6 (depending on the age of the structure)
Kuccha/Bamboo/Wood/Tin Structure: Not specified
The age of the structure also affects the property tax rate.
0-20 years old: 1.00, 0.90 (depending on the type of construction)
20-30 years old: 0.80
30-40 years old: 0.70
40-50 years old: 0.60
50-60 years old: 0.50
More than 60 years old: 0.50
The total built-up area of the property determines the Slab Factor (SF) for calculating the property tax.
Up to 1000 sq. ft.: 0
Above 1000 sq. ft. up to 1500 sq. ft.: 0.75
Above 1500 sq. ft. up to 2000 sq. ft.: 1.15
Above 2000 sq. ft. up to 2500 sq. ft.: 1.30
Above 2500 sq. ft. up to 5000 sq. ft.: 1.40
The formula for calculating property tax is: Property Tax = Annual Rental Value x AGF x (1 + SF) x Construction Type Factor
Annual Rental Value (ARV) is the expected yearly rent that the property would fetch if it were to be rented out.
To calculate the AGF, use the age of the property as per the rates specified in point 2 above.
To calculate the Construction Type Factor, use the rates specified in point 1 above.
To calculate the SF, use the rates specified in point 3 above