1[88. Determination of taxable annual value. ––(1) Subject to the
provisions of section 86 and rules, if any, made by the Government in this
behalf, the taxable annual value of land and building or vacant land assessable
to taxes under this Act shall be calculated by multiplying the corresponding
unit area value with the total built-up area of a building or the total area of land,
as the case may be, minus depreciation, at such rates as may be prescribed,
depending on the age of the building :
Provided that subject to such condition and in such circumstances as may be notified by the Commissioner, the Municipal Corporation may, in lieu of tax payable under this Act, fix a lump sum amount as annual tax for a certain category of properties.
Explanation.–– For purpose of sub-section (1), the “unit area value” means the unit area value determined under the Jammu and Kashmir Property Tax Board Act, 2013.
(2) The property tax payable shall be reduced by twenty-five percent in respect of a self-occupied building used for residential purpose and such class of self-occupied non-residential building as may be notified by the Government on the recommendation of the Corporation.
(3) The person liable to pay the property tax shall pay the tax in two equal installments, the first being before the 30th May and the second by the 30th November of each financial year :
Provided that the owner or occupier may, if he so chooses, pay the tax in one installment :
Provided further that if the owner or occupier who is liable to pay property tax files return and also pays property tax for the whole year within one month from the date of commencement of the financial year, he shall be allowed a rebate of ten percent. on the tax payable by him :
Provided also that the Government may, on the recommendation of the Corporation, by notification, extend the time limit for the payment of property tax without penalty and for the benefit of ten percent rebate in respect of the financial year 2020-21.
(4) Before any owner or occupier submits any return under sub-section (5), he shall pay in advance half year tax calculated or the full amount of the property tax payable by him for the year on the basis of such return declared by him as being true and complete.
(5) Every owner or occupier who is liable to pay property tax under this Act, shall every year submit to the Commissioner or any officer authorised by him in this behalf a return in prescribed form within the stipulated period and in the prescribed manner.
(6) In order to facilitate filing of return by an owner or occupier of any building or vacant land or both and assessment of property tax under this section, the Commissioner shall, from time to time, issue guidelines for determining the taxable annual value of the property and the tax payable thereon.
(7) Every return filed by an owner or occupier shall be deemed to be assessed to tax except in cases where the Commissioner or any officer authorised by him take up cases for random scrutiny in such manner as may be prescribed.
(8) For the purpose of random scrutiny of the return filed or in cases where returns are not filed as required under sub-section (5) in respect of any buildings or lands or both, the Commissioner or any officer authorised by him in this behalf may enter any land or building for inspection, survey or measurement after giving notice to the owner or occupier and the owner or the occupier shall be bound to furnish necessary information required and based on such inspection and information collected, the Commissioner or such other officer shall assess the property tax subject to sub-sections (10) and (11) and send a copy of the order of assessment to the owner or occupier concerned :
Provided that no such entry shall be made into and upon any building or vacant land before sunrise and after sunset.
(9) If the owner or occupier of the property refuses to allow the authorised officer to enter the premises for inspection, survey or measurement, the officer shall, after intimating such owner or occupier in this behalf, record the refusal and proceed to assess the property to the best of his judgment :
Provided that in case of a building used as human dwelling, due regard shall be paid to the social and religious customs of the occupiers thereof and no residential premises in the actual occupancy of a women shall be entered until she has been informed that she is at liberty to withdraw and every facility has been afforded to her for withdrawing.
(10) Upon random scrutiny, if the Commissioner or the officer authorised by him in this behalf has reasons to believe that any return furnished, which is deemed as assessed, is incorrect or has been under-assessed resulting in evasion of property tax, he may, on the basis of information available on record and after physical inspection, proceed to re-assess the property after giving a reasonable opportunity to the tax payer to make a representation in this behalf.
(11) After making re-assessment under sub-section (10), the Commissioner or the authorised officer, shall issue a notice of re-assessment to the tax payer demanding that the re-assessed tax shall be paid within thirty days of the service of the notice :
Provided that if the tax re-assessed is higher than the tax remitted along with the returns by more than five percent, the evaded tax shall be payable by such person together with a penalty of not less than two times of the tax so evaded along with interest for the difference in tax paid and payable calculated at twelve percent per annum.
(12) The owner or occupier may either accept the property tax assessed and the penalty levied under sub-section (11) or send objections to the Commissioner or the authorised officer within thirty days from the date of receipt of the notice under sub-section (11).
(13) The Commissioner or the officer authorised by him shall consider the objections, if any, received under sub-section (12) and pass such orders either confirming or revising such re-assessment within a period of sixty days from the date of filing of objections and send a copy of the order to the concerned tax payer.
(14) An assessment or re-assessment under this section shall not be made on expiry of three years after––
(i) filing the tax return under this section ;
(ii) the evidence of fact justifying re-assessment, comes to the knowledge of the Commissioner or the officer authorised by him in this behalf.
(15) In computing the period of limitation specified for assessment or reassessment, as the case may be, under this Act, the period taken for the disposal of any appeal against an assessment order or other proceedings by the appellate authority, tribunal or competent court shall not be taken into account.
(16) The property tax assessed and levied under this section shall be subject to revision once in three years by enhancing the tax by such percentage not exceeding fifteen percent of the tax as may be prescribed, commencing from the financial year from which the property tax is determined under this section (hereinafter referred to as base year) :
Provided that the non-assessment of property tax under this section during the block period of three years shall not be applicable to a building which undergoes any addition, change of use, alteration, or variation, and the owner or occupier shall report such changes within six months from the date of completion or occupation, whichever is earlier, along with the revised return and tax :
Provided further that nothing contained in this sub-section shall be deemed to affect the powers of the Government to order an earlier revision of property tax for reasons to be recorded in writing and after giving a reasonable opportunity of filing objections to the person liable to pay tax.]
Provided that subject to such condition and in such circumstances as may be notified by the Commissioner, the Municipal Corporation may, in lieu of tax payable under this Act, fix a lump sum amount as annual tax for a certain category of properties.
Explanation.–– For purpose of sub-section (1), the “unit area value” means the unit area value determined under the Jammu and Kashmir Property Tax Board Act, 2013.
(2) The property tax payable shall be reduced by twenty-five percent in respect of a self-occupied building used for residential purpose and such class of self-occupied non-residential building as may be notified by the Government on the recommendation of the Corporation.
(3) The person liable to pay the property tax shall pay the tax in two equal installments, the first being before the 30th May and the second by the 30th November of each financial year :
Provided that the owner or occupier may, if he so chooses, pay the tax in one installment :
Provided further that if the owner or occupier who is liable to pay property tax files return and also pays property tax for the whole year within one month from the date of commencement of the financial year, he shall be allowed a rebate of ten percent. on the tax payable by him :
Provided also that the Government may, on the recommendation of the Corporation, by notification, extend the time limit for the payment of property tax without penalty and for the benefit of ten percent rebate in respect of the financial year 2020-21.
(4) Before any owner or occupier submits any return under sub-section (5), he shall pay in advance half year tax calculated or the full amount of the property tax payable by him for the year on the basis of such return declared by him as being true and complete.
(5) Every owner or occupier who is liable to pay property tax under this Act, shall every year submit to the Commissioner or any officer authorised by him in this behalf a return in prescribed form within the stipulated period and in the prescribed manner.
(6) In order to facilitate filing of return by an owner or occupier of any building or vacant land or both and assessment of property tax under this section, the Commissioner shall, from time to time, issue guidelines for determining the taxable annual value of the property and the tax payable thereon.
(7) Every return filed by an owner or occupier shall be deemed to be assessed to tax except in cases where the Commissioner or any officer authorised by him take up cases for random scrutiny in such manner as may be prescribed.
(8) For the purpose of random scrutiny of the return filed or in cases where returns are not filed as required under sub-section (5) in respect of any buildings or lands or both, the Commissioner or any officer authorised by him in this behalf may enter any land or building for inspection, survey or measurement after giving notice to the owner or occupier and the owner or the occupier shall be bound to furnish necessary information required and based on such inspection and information collected, the Commissioner or such other officer shall assess the property tax subject to sub-sections (10) and (11) and send a copy of the order of assessment to the owner or occupier concerned :
Provided that no such entry shall be made into and upon any building or vacant land before sunrise and after sunset.
(9) If the owner or occupier of the property refuses to allow the authorised officer to enter the premises for inspection, survey or measurement, the officer shall, after intimating such owner or occupier in this behalf, record the refusal and proceed to assess the property to the best of his judgment :
Provided that in case of a building used as human dwelling, due regard shall be paid to the social and religious customs of the occupiers thereof and no residential premises in the actual occupancy of a women shall be entered until she has been informed that she is at liberty to withdraw and every facility has been afforded to her for withdrawing.
(10) Upon random scrutiny, if the Commissioner or the officer authorised by him in this behalf has reasons to believe that any return furnished, which is deemed as assessed, is incorrect or has been under-assessed resulting in evasion of property tax, he may, on the basis of information available on record and after physical inspection, proceed to re-assess the property after giving a reasonable opportunity to the tax payer to make a representation in this behalf.
(11) After making re-assessment under sub-section (10), the Commissioner or the authorised officer, shall issue a notice of re-assessment to the tax payer demanding that the re-assessed tax shall be paid within thirty days of the service of the notice :
Provided that if the tax re-assessed is higher than the tax remitted along with the returns by more than five percent, the evaded tax shall be payable by such person together with a penalty of not less than two times of the tax so evaded along with interest for the difference in tax paid and payable calculated at twelve percent per annum.
(12) The owner or occupier may either accept the property tax assessed and the penalty levied under sub-section (11) or send objections to the Commissioner or the authorised officer within thirty days from the date of receipt of the notice under sub-section (11).
(13) The Commissioner or the officer authorised by him shall consider the objections, if any, received under sub-section (12) and pass such orders either confirming or revising such re-assessment within a period of sixty days from the date of filing of objections and send a copy of the order to the concerned tax payer.
(14) An assessment or re-assessment under this section shall not be made on expiry of three years after––
(i) filing the tax return under this section ;
(ii) the evidence of fact justifying re-assessment, comes to the knowledge of the Commissioner or the officer authorised by him in this behalf.
(15) In computing the period of limitation specified for assessment or reassessment, as the case may be, under this Act, the period taken for the disposal of any appeal against an assessment order or other proceedings by the appellate authority, tribunal or competent court shall not be taken into account.
(16) The property tax assessed and levied under this section shall be subject to revision once in three years by enhancing the tax by such percentage not exceeding fifteen percent of the tax as may be prescribed, commencing from the financial year from which the property tax is determined under this section (hereinafter referred to as base year) :
Provided that the non-assessment of property tax under this section during the block period of three years shall not be applicable to a building which undergoes any addition, change of use, alteration, or variation, and the owner or occupier shall report such changes within six months from the date of completion or occupation, whichever is earlier, along with the revised return and tax :
Provided further that nothing contained in this sub-section shall be deemed to affect the powers of the Government to order an earlier revision of property tax for reasons to be recorded in writing and after giving a reasonable opportunity of filing objections to the person liable to pay tax.]
1. Section 88 substituted by S.O. 3466 (E) of 2020 dated 05.10.2020.