SRINAGAR: The Government of the Union Territory of Jammu and Kashmir has delayed the imposition of Property Tax due to the upcoming elections for Urban Local Bodies, including Municipal Corporations, Municipal Councils, and Municipal Committees.
This decision is reflected in two recent notifications issued by the Housing and Urban Development Department.
Under the authority granted 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 has directed that, in accordance with Rule 5 of the Jammu and Kashmir Property Tax (Municipal Corporation and Other Municipalities) Rules, 2023, the specified date of “September 30, 2023” should be replaced with the phrase “such date as the Government may notify,” as stated in notifications SOs 505 and 506, respectively.
By refraining from specifying a new date in these notifications, the Government has suspended the imposition of Property Tax until further notice, citing the upcoming Urban Local Bodies elections as the reason for this decision.
The tenure of the Srinagar Municipal Corporation (SMC) will conclude on November 5, while that of the Jammu Municipal Corporation (JMC) will end on November 14. The terms of all other Municipal bodies, including Councils and Committees in the Union Territory, will conclude between October and November. The term of Urban Local Bodies is calculated from their inaugural meeting.
The Jammu and Kashmir Property Tax (Municipal Corporation and Other Municipalities) Rules, 2023, were officially announced through two separate notifications dated February 21, 2023. These rules were established under the authority of Section 143A of the Jammu and Kashmir Municipal Corporation Act, 2000, and Section 71-A of the Jammu and Kashmir Municipal Act, 2000, with the purpose of imposing, assessing, and collecting Property Tax within the Municipal Corporations, Municipalities, and Municipal Councils of the Union Territory.
Rule 5 stipulated that individuals subject to Property Tax must provide property details and the corresponding tax amount in Form-1 by May 30 of the relevant financial year. This must be accompanied by payment proof in Form-2, with acknowledgment of the return filing in Form-3.
Rule 5 also stated that, in cases of two-installment payments, a copy of the acknowledgment, along with proof of the second instalment payment, must be submitted by November 30.
Subsequently, the Housing and Urban Development Department extended the deadline for Property Tax payment and return filing for the current financial year through amendments to Rule 5. The most recent amendment to the proviso was made on August 30, 2023, extending the deadline until September 30, 2023.
By replacing the specific date with the phrase “such date as the Government may notify,” the Government has suspended the imposition of Property Tax until further notice.
Sources of The Excelsior suggest that a new order will only be issued after the formation of new Municipal Corporations, Municipal Councils, and Municipal Committees. It is likely that discussions will take place with the new representatives of the public in the Urban Local Bodies regarding the imposition of Property Tax, which is seen as essential to secure financial assistance from the Government of India.
