Property Tax in J&K: Tax Rate, Last Date To Pay, How to Pay & Much More

Table of Content:

1. J&K Property Tax Rates​
2. List of Properties Exempted From Property Tax In Jammu And Kashmir
3. Formula To Calculate Property Tax In J&K
4. Residential Property Tax In Jammu And Kashmir
5. Commercial Property Tax In Jammu And Kashmir
6. Online Property Tax Payment In J&K
7. Penalties For Late Payment of Property Tax In Jammu And Kashmir

To make the urban local bodies of Jammu and Kashmir self-dependent to undertake development work, Jammu and Kashmir Property Tax (Municipal Corporation) and Other Municipalities Act, 2023, came into force in the region on April 1, 2023, to govern the property tax in J&K. The Union Territory of Jammu and Kashmir is imposing the property tax for the first time. 

As per this act, the property tax in J&K applies to all municipal areas of Jammu and Kashmir. In the recent development, the Government of the Union Territory of Jammu and Kashmir has extended the date for payment of property tax in Jammu and Kashmir and filing of returns till August 31, 2023.

If you are a property owner who has not yet paid the property tax in J&K, then this comprehensive guide will take you through the entire property tax payment process.

J&K Property Tax Rates

The property tax in J&K varies for residential and commercial properties. The J&K property tax rate for residential properties is 5% of TAV (Taxable Annual Value) while it is 6% of TAV for commercial properties.

Taxable Annual Value (TAV) of a property is based on various factors like municipality type, floor, land value, usage, area, slab, age of the property, usage type, and occupancy.

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List of Properties Exempted From Property Tax In Jammu And Kashmir

There are certain categories of properties that are exempt from the ambit of the Jammu Kashmir property tax. The list of such properties is mentioned below:

• Residential houses with a built-up area of up to 1500 sq. ft.

• Commercial shops with an area of up to 200 sq. ft.  

• Municipal properties

• Places of worship like churches, mosques, temples, and gurudwaras

• Cremation and burial grounds, ziarats

• Government of India/ UT government-owned properties

• Vacant lands not belonging to a structure or building

Formula To Calculate Property Tax In J&K

You can use the following formula to calculate the property tax in Jammu and Kashmir.

TAV (Taxable Annual Value) = Municipality Type Factor x Land Value Factor x Area Factor x Floor Factor x Usage Type factor x Capitalization Rate Factor x Age Factor x Structure Factor x Occupancy Status Factor.

The local government determines the value of each factor.

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Residential Property Tax In Jammu And Kashmir

The property tax in J&K for residential properties is 5% of TAV (Taxable Annual Value). The calculation of the Taxable Annual Value for residential property takes into consideration the following factors:   

• Property’s location

• Property’s size

• Construction type

• Property’s age 

Commercial Property Tax In Jammu And Kashmir

The property tax in J&K for commercial properties is 6% of the TAV (Taxable Annual Value). The calculation of Taxable Annual Value (TAV) for commercial properties takes into consideration the same factors as residential properties. 

Online Property Tax Payment In J&K

Property owners of J&K can pay property tax online using the user-friendly digital platform. You can follow this step-by-step guide to pay J&K property tax online.

Step 1: Visit the official website of the Ministry of Defence, Jammu Cantonment Board.

at https://jammu.cantt.gov.in/.

Step 2: As the homepage opens, locate the “Public Services” section on the left and click on the “Property Tax” option. 

Step 3: As you will be taken to the Property Tax page, click the 'APPLY' button at the bottom of the page.

Step 4: The eChhawani page will load. Choose your preferred language to continue with the process of paying property tax in J&K. 

Step 5: Once you select your preferred language, the login page will appear. If you are a registered user, then enter your mobile number and OTP to proceed further. If you are not a registered user, you can register by selecting your cantonment and providing your name and mobile number. 

Once registered, use your mobile number and OTP to login.

Step 6: After logging in, click on the “Search Property” option.

Step 7: A new screen will appear containing your property tax details.

Step 8: After carefully examining the details, you can pay the property tax in J&K using either the tax payment site or the link sent to you via email and SMS.

Step 9: After the successful payment of Jammu Kashmir property tax, download the payment receipt. 

Penalties For Late Payment of Property Tax In Jammu And Kashmir

Failure to file a property tax return by the deadline attracts a penalty of Rs 100 or 1% of the tax due, whichever is higher, for each month of default. However, the maximum penalty fee is limited to Rs. 1000. 

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Conclusion

Property tax in J&K is expected to bring in 150 crores to the government's treasures. J&K property tax income will provide financial independence to the local bodies, and the amount will be used to improve the infrastructure and existing amenities, which in turn will attract business opportunities in the future. Most importantly, the property tax in J&K can be paid in two installments, so it doesn’t create a burden for the property owners.