Govt Delays Property Tax Implementation Across UT

Government of Union Territory of Jammu and Kashmir has put on hold imposition of Property Tax keeping in view the forthcoming elections to the Urban Local Bodies-Municipal Corporations, Municipal Councils and Municipal Committees.
This is evident from two latest notifications issued by the Housing and Urban Development Department.
In exercise of the powers conferred by Section 71-A of the Jammu and Kashmir Municipal Act, 2000 and Section 143-A of the Jammu and Kashmir Municipal Corporation Act, 2000, the Government hereby directs that in provision to Rule 5 of the Jammu and Kashmir Property Tax (Municipal Corporation and Other Municipalities) Rules, 2023 for the figures and words “30th September, 2023” the words “such date as the Government may notify” shall be substituted, read the notifications issued vide SOs 505 and 506 respectively.
By not mentioning any new date in the notifications the Government has put on hold the imposition of Property Tax till further orders, sources said, adding the decision has been taken keeping in view forthcoming elections to the Urban Local Bodies.
The term of Srinagar Municipal Corporation (SMC) will end on November 5 and that of Jammu Municipal Corporation (JMC) on November 14 while terms of rest all Municipal bodies including Councils and Committees in the UT will end between October-November. The term of Urban Local Bodies is counted from the day of their first meeting.
The Jammu and Kashmir Property Tax (Municipal Corporation and Other Municipalities) Rules, 2023 were notified vide two different notifications dated February 21, 2023 in exercise of the powers conferred by Section 143A of the Jammu and Kashmir Municipal Corporation Act, 2000 and Section 71-A of the Jammu and Kashmir Municipal Act, 2000 for levy, assessment and collection of Property Tax in the Municipal Corporations, Municipalities and Municipal Councils of the Union Territory.
In Rule 5, it was mentioned that a person liable to Property Tax shall furnish to the designated/authorized officer the particulars of the property and the tax due thereon in Form-1 by May 30 of the financial year to which the return pertains. It shall be accompanied by a proof of payment in Form-2 and acknowledgment of filing of return shall be in Form-3.
“A copy of the acknowledgement along with the proof of payment of the second installment of tax shall be furnished by November 30 in cases where the payment is made in two installments”, the Rule 5 further read.
Thereafter, the Housing and Urban Development Department extended the date for payment of Property Tax and filing of return for the current financial year before the designated authorities by adding proviso to Rule 5 of the Rules.
After that amendments were carried out in the proviso after regular intervals and last amendment in the proviso was made on August 30, 2023 when the last date for payment of Property Tax and filing of return was extended till September 30, 2023.
By substituting the date with words “such date as the Government may notify”, the Government has put on hold the imposition of Property Tax till further orders.
“The fresh order will be issued only after formation of new Municipal Corporations, Municipal Councils and Municipal Committees and it is likely that deliberations will also be held with new representatives of public in the Urban Local Bodies on the imposition of Property Tax, which otherwise is a necessity to obtain financial assistance from the Government of India”, sources said. (Daily Excelsior)