After New Town, Kolkata the Unit Area Assessment (UAA) system of property tax collection is all set to be introduced at the IT hub of Sector V this year. The Nabadiganta Industrial Township Authority (NDITA) is planning to introduce UAA in 2023-24 — from April 1.
Officials said that the West Bengal Valuation Board, which had earlier come up with a draft scheme on the UAA system of tax collection for Sector V, has finalised the proposed structure, based on which NDITA will start collecting tax.
We plan to start collecting tax based on the UAA system from all establishments in Sector V from April for the new financial year,” said an NDITA official.
Officials said that presently, all establishments in Sector V pay their property tax based on the rental value calculation system which is an old system. “There are about 1,200 holdings in Sector V which include all office complexes and IT companies. NDITA has been roughly collecting around Rs 60 crore to 70 crore as property tax every financial year till date,” said a NDITA official.
Officials said that as per the draft proposal which has been finalised, no property tax will exceed 30% of the annual value of land and buildings in Sector V. The property tax amount will be the annual valuation multiplied by the applicable percentage of tax, as proposed in the draft notification.
Officials said that the reason why the UAA system of property tax collection has been planned for Sector V is that it will bring the IT hub at par with Kolkata and New Town. “The objective is not to increase the tax burden for establishments having property in Sector V but to have a systematic process where the tax paying establishments will be able to make self assessment and pay tax on their own,” an official said.
IT experts have hailed the decision to introduce UAA based property tax collection system for Sector V as all establishments located in the IT hub would be able to self assess and pay tax in a transparent manner which will benefit both NDITA and the establishments.
The UAA system of property tax assessment and collection was introduced in neighbouring New Town in 2018-19 financial year. The Kolkata Municipal Corporation (KMC) had introduced the system in April 1, 2017.
By LNN (Liyaans News Network)