The property tax will be levied as per applicable municipal norms. It will not increase on nature or rent or lease.
Property tax for a rented commercial property
Hi I own a flat 1500 sqft in Kolkata a stand alone building partly residential, in kolkata. I registered my OWN company and took trade license at this location 10 yrs back and since then Kolkata municipal corporation levied commercial property tax of about 7000 per quarter i have been paying for the last 10 yrs. I am planning to give the property on rent of about 70,000 now to another company who will use this place as their office and get the necessary certificates /trade license/Gst numbers at this location. 1.Will there be an increase in property tax . 2.What will be the property tax i will have to pay going forward. 3.What are the slabs of Kolkata municipal corporation that fix the rate of property tax for rented commercial properties .? Can you pls help me with an estimate of the property tax i will be asked to pay.?
Asked 20 days ago in Taxation
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5 Answers
You have to contact the assessment department,muncipal corporation in Kolkata in this regard
2) If the property is tenanted, the actual monthly rent (including service charges and / or maintenance charges, if any) is multiplied by 12 less 10% statutory allowance to arrive at the Annual Valuation
1. Yes if it is re assessed.
2. It depends on the KMC calculation.
3. Check the KMC website.
1. Since the commercial tax is already being levied there's no reason to levy additional tax just because you have let it out on rent.
2. You may have to continue the same.
3. You can enquire locally
Dear Client,
When the usage of a property changes from residential to commercial, it's common for the property tax to increase. This is because commercial properties are generally taxed at a higher rate compared to residential properties. Since you're planning to rent out the property for commercial use, it's crucial to ensure that all necessary certificates, licenses, and registrations are obtained as per local regulations. This includes trade licenses, GST registration, and any other permits required for operating a commercial establishment in Kolkata. The property tax you'll have to pay going forward would depend on the specific regulations of the Kolkata Municipal Corporation (KMC). KMC determines property tax based on factors like property size, type, usage, and location. Since you're converting your property into a commercial space, you'll likely be assessed at a different rate than before as follow:
Developed Bustee is 8%, Government Properties under KMC Act, 1980 is 10%, Properties having Annual value of < 30000 is 15 % and others is 20%
