Self Assessment Scheme - Frequently Asked Questions

What is the procedure to be followed for self assessment?
All the Land Owners or the Occupants shall fill up the particulars in the Proforma provided by the City Municipal Council and submit to the office in duplicate, commencing from 1st April and before 30th June.

What are the properties subject to tax?
Except the properties, which are exempted from tax under law, the tax is levied on all the remaining buildings, land, structures with land and all the non-agricultural lands within the limits of City Municipal Council.

What are the properties subject to exemption/concession of tax?
The buildings used under the ownership of the Central and State for government purposes and the lands and buildings of public temples, and charitable institutions are exempted from the payment of tax.

What is the procedure for assessing the original value of the buildings and lands?
The Committees constituted under Sec 45-8 of the Karnataka Stamp Act have assessed and published the estimated market value of land and various type of buildings in different places of municipal areas. The rates in the current published list are given in Annexure -Land Annexure -2 of this Hand Book. When the market value published in Annexure -1 of this Hand Book is made applicable to concerned area, premises, road, street, where the property is situated and multiplied with the extent of site, the outcome of the value is the original value. While assessing the original value on the buildings, the respective building construction cost referred in Annexure-2 of this Hand Book shall be multiplied with the measurement of the building in accordance with the depreciation rates mentioned in Annexure-6 and there after the tax shall be assessed on the amount remaining after depreciation.

How to assess the tax on the basis of capital value?
After calculating the capital value on the vacant premises and buildings, the rate of tax assessed by the Council in Annexure-3 is multiplied, you will get the capital revenue payable and when 44% cess is added to this capital revenue, you will get the total property tax payable.

How to submit Declaration (Particulars List)?
After calculating the tax amount on the vacant premises and buildings, the entire tax amount (including cess) shall be remitted in the Banks in quadruplicate notified by the Council for this purpose. The filled in Declaration form accompanied by the certified copy of tax paid receipt and a copy of the Particulars of Property Tax Calculation shall be submitted to the Assessing Officer with true and proper information before June 30th of the respective year and shall get acknowledgement. The proforma of Declaration is enclosed herewith.

Is there any concession in this Tax?
Yes, the concession at the rate of 5% will be allowed to the assessee, who makes the tax payment by submitting particulars during the opening of financial year i.e., before 30th April. A concession of 50% is allowed on the building utilized for self-occupation under this Self Assessment Scheme.

Duration for verification and approval of the Tax in Particulars List?
The officers of the council have powers to verify and complete the assessment within one year from the date of submission of particulars list, in accordance with the law.

What is Property Tax Register?
The particulars regarding the payment of tax by the owners and occupiers of the Land and Buildings in revenue division of each and every ward will be published in this Property Tax Register. The interested persons may verify the said details free of cost otherwise the requisite fee should be paid and the certified copy may be obtained.

Is there any action against the persons who submit wrong declaration and not before 30th June?
Obviously, when any owner or the Occupier provides incomplete and improper information or particulars, the officer of the authority inspects the spot/premises, subject to the tax assessment and after assessing the required tax, gives a copy of one such order. If it is found that the assessee is pre-determined with an intention to evade the payment of tax, then twice the tax difference in the tax assessed by the Officer and the self assessed tax may be imposed on the assessee.

When the owner of the property fails to submit the particulars, the officer of the authority may assess the tax and impose penalty @ 50% on the said amount.

What is action against the un-authorized and buildings constructed in violation of rules?
When the buildings are constructed without obtaining necessary official plan from the City Municipal Council and buildings constructed in violation of the directions and the rules, the officer of the authority may assesses the tax and levy penalty twice the assessed amount and further until the buildings constructed in violation of rules are set-right, the imposition of penalty continues every year. This action will not prohibit the law to take action against the unauthorized buildings.

Whether the assessee derives the property right on the property subject to tax under Self Assessment Scheme.
No. All the buildings, lands falling within the jurisdiction of City Municipal Council/ Town Municipal Coucil/ Town Panchayath shall have to pay tax. There is no restriction that you should have Khatha, Mutation or Record of Rights to pay the tax and further the owners of any un-numbered property of the Municipal Corporation also have to pay the property tax and sumit the particulars. The certified copy of the Property Tax Order and Property Tax Register relate the payment of tax. Separate action will be taken in accordance with law regarding the Mutation and Record of Rights.

Whether appeal provision is made as against the tax assessed by the officer and the penalty imposed thereof?
Yes. When the officer of the Authority assesses the tax and imposes the penalty, the Owner of the property on receipt of the said order may admit the same and pay the penalty or otherwise may prefer an appeal with valid grounds before the competent officer within 30 days from the date of receipt of such order, and the officer receiving such appeal may revise or confirm the assessment ad penalty within 60 days and such order of the appeal will be made available to the owner. This order if final.

An appeal may be preferred under Sec. 150 before the Magistrate as against the Demand Notice issued under Sec. 142 (3) of the Karnataka Municipal Corporation Act. 1964.

What action will be taken against the tax evaders ad who do not pay the tax?
Under this Self Assessment Scheme, all the buildings, properties and the lands falling within the limits of the City Municipal Council shall voluntarily calculate the tax, pay the tax and submit the tax paid challan with the property details within 30th June of every year compulsorily. The owners or the occupiers not following the said procedure will be issued claim notice under section 142 (3) of the Karnataka Municipal Corporation Act, 1964 and thereafter the movable properties of the owners or occupiers not paying the tax and penalty within 30 days will be attached and the tax and penalty payable will be realized by disposing of the said properties in action and with regard to the remaining tax, necessary application will be filed before the competent Judicial Magistrate under Section 147 and an order will be obtained for twice the penalty of remaining tax. Such action may be taken from the assessment year and within 6 years. This tax scheme is very easy and is formed in the interest of public. Therefore, the public are hereby requested to know the transparency of this scheme and be pleased to provide proper and true information to the authority, pay the property tax in time by submitting the particulars and co-operate with the Municipal Council for your over-all development and for providing sufficient civic amenities to you.