Property tax new rates applicable from April 1
Kerala – The Union affairs Minister has approved the amendments to the Kerala Property Tax Act 2011. The new rates will be applicable from April 1, 2013 onwards.
The return forms have been simplified and additional burden on homeowners has also been removed. There will be no fine imposed on the house owners who had failed to pay tax on time.
The property tax hike has been reduced from 30 percent to 20 percent for those buildings which are positioned near the National and State highways and have access to a road with a width of 5 metres.
The 30 percent hike in property tax for buildings which do not have public road access has also been reduced to 20 percent. The 30 percent tax-hike for buildings those which have easy access to important roads has been cancelled.
It has also been decided that no additional tax will be imposed for rented buildings and pay homes. Tax will not be fixed on the basis of nature and use of building.
The minimum and maximum increase in annual tax revision made on floor area basis will be 25 percent and 60 percent respectively.
The local bodies of respective areas can increase property tax by only five percent a year. Thus they can increase only 25 percent tax in five years.
Property tax concession has also been approved for multi-storey properties in Kerala . The first floor above ground will be given five percent tax concession. Concession of 10 percent, 15 percent, 20 percent and 25 percent will be given for the second, third, fourth, fifth floors and above respectively.
The last property tax revision was done in the year 1994 which resulted in decrease in income. Following the complaints made by the public regarding the tax structure, the amendments in Act have been approved.
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