Taxable Annual Value (TAV) = MTF x LVF x ARF x FF x UTF x CTF x AGF x SF x OSF
Property Tax on Residential Property = 5% of Taxable Annual Value (TAV)
Property Tax on Non-Residential Property = 6% of Taxable Annual Value (TAV)
MTF is Municipality Type
Factor. Its value shall be
entered in the formula as
follows:Municipal
Corporation : 1
Municipal
Council : 0.75
Municipal
Committee : 0.5
LVF is Land Value Factor.
It is one tenth
of the unit area value of land
in Rs lakh per kanal of land as
notified under J&K Preparation
and Revision of Market Value
Guideline Rules, 2011 as on 1st
April of the base year of that
block of three years. e.g. for
the first block from 1st April,
2023 to 31st March, 2026, if the
per kanal value of land as on
1st April, 2023 as per the
aforementioned value guidelines
is Rs 60 lakh, it be entered as
6 in the above calculation and
shall continue to be entered as
6 during the three financial
years of the block.
ARF is the Area Factor. It
is the built area or the vacant
area in respect of which the tax
liability is being calculated,
as the case may be, in square
feet. In the case of Property
tax on built area, it refers to
the total covered area of that
floor in square feet. In case of
areas with winter snowfall, the
area of the attic shall not be
counted in built-up area. In the
case of Property tax on vacant
land not appurtenant to a
building, the area of the vacant
land in square feet shall be
entered. In the case of Property
tax on vacant land appurtenant
to a building, the area to be
entered in the formula shall be
the area, in square feet, in
excess of two times the built-up
area of the ground floor.
FF is floor factor. For
calculating the liability of
different floors and vacant land
abutting the building, the floor
factor shall be entered in the
formula as follows.
Residential buildings including
flats : 1
Other buildings:
Ground floor : 1
First floor
: 0.8
Second floor : 0.7
Third floor and above : 0.5
Vacant land : 0.1
Basements
for all types of buildings : 0.5
UTF is Usage
Type factor.
For
vacant land appurtenant to a
building, it shall be the same
as that of the building itself.
Where different portions of a
building are put to different
uses, property tax for the
built-up area as well as the
taxable vacant appurtenant area
shall be separately calculated,
proportionately, for each area
under a particular use. The
value to be entered in the
formula for different usage
types shall be as follows:
Residential apartment/ flat : 2
Residential house : 2.5
Industrial (Manufacturing) : 5
Institutional/Public/ Semi
Public : 7
Commercial, except
3 star and above Hotels, : 12
towers & hoardings
3 star and
above Hotels, : 15
towers &
hoardings.
CTF is the Construction Type
Factor.
Its value
shall be entered in the formula
as follows, based on the
predominant and substantive
nature of the construction:
RCC construction : 1
Pucca
(without RCC) construction : 0.9
Prefabricated structure : 0.8
Kuccha/Bamboo/Wood/Tin Structure
: 0.6
AGF is Age
Factor.The value
for this factor shall be entered
in the formula as follows:
0-20 years old : 1.00
20-30
years old : 0.90
30-40 years
old : 0.80
40-50 years old :
0.70
50-60 years old : 0.60
More than 60 years old : 0.50
SF is Slab
Factor. The value
of slab factor shall be entered
in the formula as follows based
on the total built-up area
calculated as indicated at 3
above.
Residential houses/
apartments
Upto 1000 sft : 0
Above 1000 sft upto 1500 sft :
0.75
Above 1500 sft upto 2000
sft : 1.0
Above 2000 sft upto
2500 sft : 1.15
Above 2500
sft upto 5000 sft : 1.30
Above 5000 : 1.5
Other
usage types
Upto 100 sft :
0.50
Above 100 sft upto 250
sft : 0.75
Above 250 sft upto
500 sft : 1.00
Above 500 sft
upto 1000 sft : 1.15
Above
1000 sft upto 2500 sft : 1.30
Above 2500 sft upto 5000 sft :
1.5
Above 5000 sft : 2.0
OSF is
occupancy status.
The value of this factor for
built-up properties shall be
entered in the formula as
follows:
Self-occupied for
more than 6 months : 0.75
Others : 1.0
As
Property Tax is to be levied
annually and can be paid in two
equal instalment it will not be
burdening common citizen.
Further, as per Act 10% rebate
can be availed by early
submission of Property Tax.
