The Kashmir Pulse

SRINAGAR — Amid controversy over the imposition of property tax in Jammu & Kashmir, the administration of Union Territory has extended the deadline for filing property tax returns.

The Housing & Urban Development Department (H&UDD) has amended the rules governing the imposition of property tax in Jammu & Kashmir after the deadline for furnishing of property tax returns elapsed.

The amendment in the rules governing the imposition of property tax in Municipal Corporations and other Municipal Bodies state that the particulars of the property and the tax due thereon for the financial year 2023-24, shall be furnished by July 31, 2023.

“Provided that the particulars of the property and the tax due thereon for the financial year 2023-24, shall be furnished in Form-1 by July 31, 2023,” reads proviso added to Rule 5 of “The Jammu and Kashmir Property Tax (Municipal Corporations) Rules 2023 and “The Jammu & Kashmir Property Tax (Other Municipalities) Rules, 2023”.

The proviso has been added as the deadline for filing of property tax is May 30 of the financial year to which the returns pertain.

“It was a legal necessity to add the proviso as a deadline for filing particulars of the property and tax due thereon during the ongoing financial year elapsed on May 30,” an official told the news agency KNO.

The imposition of property tax evoked criticism from mainstream parties but the J&K administration has maintained that Jammu and Kashmir is the last in the country to come under the purview of property tax.

SRINAGAR — The Jammu and Kashmir and Ladakh High Court has issued notices to the Government of India and the Government of Jammu and Kashmir in a plea challenging the constitutionality of the imposition of property tax in the erstwhile state of Jammu and Kashmir.

The legality of the imposition of the property tax was challenged by a local petitioner, stating that Section 96 of the Jammu & Kashmir Reorganization Act, 2019 which was invoked to issue the J&K Reorganization (Adaptation of State Laws) Third Order, 2020 and amend the J&K Municipal Corporation Act, 2000 for levy of property tax, suffers from the vice of excessive delegation.

The petitioner, while filing the plea, filed through Advocate Taha Khalil states, "The words “amendment” and “repeal” have been incorporated in the section implying the designation and devolvement of essential legislative functions upon executive limb of the government. The power to amend and or repeal any existing law is a policy decision which, in a democratic setup, is only exercised through a body of elected representatives, therefore, the vesting of powers to amend and or repeal laws with the Executive authorities is a bizarre precedence of usurping the power, authority and jurisdiction of the legislative assembly of Union Territory of Jammu & Kashmir."

The plea states that such excessive delegation violates Articles 14, 21, 246, 265, 300A, Schedule VII, Doctrine of Federalism and other express provisions of the Constitution.

The petitioner further argues that the imposition of property tax, without proper legislation and public consultation, violates Article 265 of the Constitution of India. "The haste and malice on the part of the Government of Jammu and Kashmir goes against established legislative practice," he adds.

Furthermore, it is contended that the imposition of property tax on the petitioner is in violation of Article 300A of the Constitution, which guarantees the right to acquire and enjoy property. The petitioner argues that the imposition of property tax deprives them of their right to the enjoyment of their property and, as a result, violates their right to life under Article 21 of the Constitution.

In view of the said grounds, the petitioner has urged the Court to quash the impugned orders and issue any other appropriate direction for protecting the constitutional provisions and the doctrine of federalism.

The matter is now listed for the next hearing on July 24 this year.

SRINAGAR — Amid growing criticism over the imposition of property tax in Jammu & Kashmir, the administration of the Union Territory has sought feedback from the general public over the proposed tax.

In a notice, as per the news agency KNO, the Housing & Urban Development Department has sought suggestions/comments from the general public over the imposition of property tax in Jammu & Kashmir.

“Any suggestions/comments in this regard are welcome and may be sent to the Housing & Urban Development Department at the email address housingudd9@gmail.com within 10 days,” reads the notice.

The notice states that UT of Jammu & Kashmir is levying property tax on residential houses/apartments and commercial establishments within the municipal areas from April 1, 2023 in terms of two notifications issued by the Housing and Urban Development Department on February 21.

On February 21, 2023, J&K’s Housing and Urban Development Department issued two separate notifications for levying, assessment and collection of property tax in the urban areas of Jammu and Kashmir, where 27% of the UT’s population resides as per the 2011 census figures.

The Jammu & Kashmir Property Tax (Municipal Corporation) Rules 2023 and the Jammu & Kashmir (Other Municipalities) Rules 2023, notified by the government, define the procedure for collection of property tax within the limits of municipal corporations, committees and councils in the UT.

As per these rules, property tax is to be 5% of the taxable annual value (TAV) on residential properties and 6% of the taxable annual value on commercial properties.

The rules faced widespread criticism, with political parties including National Conference, Congress, Peoples Conference, and Peoples Democratic Party assailing the move. Even the State BJP distanced itself from the move.

JAMMU — Chamber of Commerce and Industries Jammu (CCIJ) has given a shutdown call on March 11 against the imposition of property tax in Jammu and Kashmir.

Addressing a press conference, President CCIJ Arun Gupta, as per the news agency KNO, said that after a series of meetings with members of civil society and other organizations, they have decided to observe a complete shutdown on Saturday.

He said that the Chamber of Commerce and Industry will oppose any move that will put a burden on the people.

SRINAGAR — Days after the government announced levying of property tax in Jammu & Kashmir, the administration on Wednesday said that the Municipal Corporations and Committees have started passing the resolution to adopt the decision and that the transparency system in the Union territory has no comparison with rest of the country.

In an exclusive chat with the news agency KNO, Divisional Commissioner, Kashmir, V K Bidhuri, said that the Municipal Corporations and Committees require resources to run the affairs, but presently these Corporations and Committees are generating only 10-15 percent of the revenue and are dependant for rest of the resources. "To ensure better facilities, every municipality requires resources and property tax is the best decision to generate revenue for the wellbeing of the people,” he said.

He added that J&K is the last in the country where the property tax has been imposed, but the government decided to go with a minimum tax. “The rural areas are already out while in urban areas, agricultural land and other falling under the master plan are also exempted,” he said while appealing to people not to pay heed to the sayings, but they should calculate on their own.

“Tax is not being imposed on any individual but it is being levied on a property and people having property on less than 1000 sq ft are already exempted,” he said while replying to a query.

He further said that out of a total of 5.20 lakh residential houses, 40% among them have been exempted as the properties have come up on less than 1000 sq ft. “The tax amount is different in different areas and districts and is being decided as per the circle rate,” he said.

He also said that after the decision was taken in this regard, the municipalities started passing the resolution to adopt the decision.

He added that the tax amount will be used only for developmental purposes in the respective municipalities. He added that the tax will have to remain the same for three years and will be reviewed after three years as per the circle rate.

"The property tax will ensure resources for the development and better facilities for the people and will also bring a sense of ownership among them," he said.

He added that there is a transparency system in J&K and there is no comparison between J&K’s transparency system with any part of the country. “The transparency system in J&K cannot be found anywhere in the country where even the photos of developmental works are being uploaded,” he said.

Asked about a complete shift to online mode, the Divisional Commissioner Kashmir said that the process has already been done and every work is being done through online mode now.

About the smart city project works, he said that the deadline has been squeezed to April and the works are going on at a rapid pace during the day as well as night. “The people will face inconvenience, but the works will be completed on April 15 while carpeting and other related things will be done by April 30,” he said.

Asked about the encroachment drive, he said that retrieving encroached land is their regular activity and the government is responsible for it. “We are duty bound to carry out our anti-encroachment drive for the people. We are re-strategizing it at present, but the poor will not be touched,” he said.

Asked about the completion of the installation of smart meters across Kashmir, he said that the process will be completed in the next two years.

SRINAGAR — Jammu and Kashmir Lieutenant Governor Manoj Sinha said that 40 percent of J&K’s urban population will have to pay no property tax and the remaining 60 percent have to pay a nominal amount between Rs 600 to Rs 1000 maximum amount per annum. He said that the tax amount fixed is one-tenth of the tax being paid by Shimla, Ambala, and Dehradun.

Talking to reporters on the sidelines of a function at SKICC here, the LG as per news agency KNO, said in J&K, 2,0,3,680 households are less than 1500 sq. feet.

“Forty percent of people living within the limits of Municipal Corporations/Committees won’t have to pay the tax. Eighty percent of the 2,0,3,680 households will have to pay a nominal amount of Rs 600 only while the rest will have to pay a nominal amount of Rs 1000 as property tax per annum. This amount is one-tenth of the tax amount being paid by Shimla, Ambala and Dehradun,” LG Sinha said.

About the commercial property including shops, the LG said that 1,01,000 shops are in J&K of which 42 percent of shops are less than 100 sq. feet. “These shops will have to pay less than Rs 700 per annum. 76 percent of the total shops of 1,01,000 shops will have to pay a very minimum amount as the property tax,” he said, adding that the amount collected will directly go into the accounts of Municipal Corporations and be utilized for the development of the areas where tax will be collected.

“I urge the common people of J&K to come forward and help build a better J&K,” the LG said. On Saturday, the LG stated that property tax will be imposed after thorough consultations with the general public.

Pertinently, the J&K Government announced the imposition of property tax in the UT from April 1. The move evoked sharp criticism from the cross-section of society and the political parties, who demanded immediate rollback of the order.

The Housing and Urban Development Department of Jammu and Kashmir announced to impose property tax in Municipal areas under the Jammu and Kashmir Property Tax (Other Municipalities) Rules, 2023. The rules prescribe certain rules for the levy, assessment, and collection of property tax in the municipalities and municipal councils of the Union Territory of Jammu and Kashmir, effective from April 1, 2023.

The government notified the rule in the exercise of the power conferred by Section 71A of the Jammu and Kashmir Municipal Act 2000. In October 2020, the Ministry of Home Affairs (MHA) empowered the Jammu and Kashmir administration to impose the property tax after an amendment to the J&K Municipal Act, 2000, and J&K Municipal Corporation Act, 2000 through the J&K Reorganisation (Adaption of State Laws) Order, 2020.

SRINAGAR — The administration is likely to impose property tax in Jammu and Kashmir from April 1, a move opposed by various political parties including the BJP.

The Housing and Urban Development Department has been working on the proposal to impose Property Tax in the Union Territory, reports said.

The Department initially might cover commercial establishments for the imposition of Property Tax and exempt the residential buildings as there has been opposition to the proposal from various political parties and organizations including the BJP, Daily Excelsior reported.

Earlier, the Jammu Municipal Corporation (JMC) Mayor Rajinder Sharma, a BJP member, announced that the Property Tax will not be imposed.

“Slabs for the imposition of Property Tax are being worked out,” sources quoted by the newspaper said.