The Jammu and Kashmir Urban Immovable Property Tax Act, 1962

Short title and commencement.-

1. (1) This Act may be called the Jammu and Kashmir Urban Immovable Property Tax Act, 1962.
2. (2) It shall come into force in such areas and on such dates as the Government may, by notification in the Government Gazette, direct.

Definitions.-In this Act, unless the context otherwise requires,-

1. (a) "appellate authority" means an authority appointed by the Government for purposes of this Act; (a-1) "annual value" means the annual value as determined under section 5 of the Act, (a-2) "Assessee" means an owner as defined by clause (e) of this sub-section and includes--
   • (i) any person who is liable to pay tax, penalty, interest or any other sum under this Act, and
   • (ii) any person against whom proceedings for assessment or recovery have been taken under the provisions of this Act;
2. (b) "assessing authority" means the assessing authority constituted under this Act;
3. (c) "Commissioner" means any person appointed by the Government to exercise the functions of the Commissioner under this Act; (c-1) "Deputy Commissioner" means a person appointed by the Government to assist the Commissioner under this Act; (c-2) "Government" means the
4. (d) "local authority" means a municipal council, a town area committee, a notified area legally entitled to, or entrusted by the Government with the control or management of a municipal or
5. (e) "owner" includes a tenant in possession, a trustee having the management of a trust property and any person being the beneficial owner;
6. (f) "prescribed" means prescribed by rules made under this Act; (f-1) "Property" means urban immovable consisting of buildings and or lands chargeable to tax under this Act;
7. (g) "rating area" means any area which is included or which may hereafter be included in the schedule to this Act;
8. (h) "tax" means the tax leviable under the provision of section 3;
   • (i) "Tax Recovery Officer" means the officer as defined in clause (mm) of section 2 of the Jammu and Kashmir Taxation Laws (Amendment) Act, 1962.

Levy of tax.

1. (1) Subject to the provisions of this Act, the tax shall be payable by an owner of property of aggregate annual value of properties in rating area at such rate not exceeding 25 per centum of the annual value as the Government may, by notification in the Government Gazette, from time to time, direct in respect of a rating area. If a unit is owned by two or more persons as joint owners, tax shall be payable in respect of such Property as a unit and they shall be jointly and severally liable for the payment of tax and any other sum: Provided that where the tax calculated on the difference between the said annual value and the annual value exceeds the exemption limit, as referred to in clause (c) of sub-section (1), or as fixed by the Government under sub-section (2), of section 4, the tax leviable shall be equal to the said difference: Provided further that the Government may fix graduated rates of tax on different slabs of annual value of such lands and buildings subject to maximum specified in this section.
2. (2) [Omitted].
3. (3) If the property, in respect of which tax is payable is transferred to any other person, whether by sale, gift, exchange, mortgage, inheritance or otherwise, the transferee shall be liable to pay tax or any other sum payable under this Act in respect of the property so transferred for the period prior to the date of transfer and the notice of demand, if any, issued to the transferer shall be deemed to have been issued to, transferee; Provided that a duplicate copy of such notice of demand shall be served on the transferee. Explanation.--For the removal of doubt it is hereby clarified that if a property is owned by two or more person in definite and specific portions as co-owners, the tax shall be payable by each co-owner in respect of the annual value of the portion owned by him.

Exemptions.

1. (1) The tax shall not be leviable in respect of the following properties, namely :-
   • (a) buildings and lands vesting in the Central Government ;
   • (b) any property vesting in or owned by the Government or a local authority ;
   • (c) any property unit or properties in a rating area owned by a person, the annual value or the aggregate annual value whereof does not exceed Rs. 3000 ;
   • (d) property held in trust wholly for charitable or religious purposes ; Provided that the income derived therefrom is exclusively applied to such purposes ; (e)
   • (a) Property exclusively used for charitable or religious purposes and property owned by a charitable or religious institution or body and placed at the disposal of any such charitable or religious institution or body for charitable or religious purposes free of rent or in lieu thereof, or
   • (b) in respect of which rent or any other income is derived and such rent or income is exclusively applied for religious or charitable purposes or given away as donations to such public charitable purposes or religious institutions as may be prescribed ;
   • (ee) Nothing in clauses (d) and (e) shall apply to the portion which is used as premises of educational, medical or any other institutions carrying on an activity for profit which is not exclusively applied to religious or charitable purposes ; Explanation :--(i) "Charitable purposes" includes education, medical relief, advancement of any other object of general public utility ;
     • (ii) "Property" includes buildings and lands ;
   • (f) such buildings and lands used for the benefit of ex-servicemen as may be prescribed ; and
   • (g) buildings valuing less which are exclusively used for residential purposes by the owner and his family.
2. (2) The Government may, by notification, exempt in whole or in part from payment of tax any person or class of persons or any property or description of property for such period as it may think fit, and may renew such exemption as it may consider to be necessary.

Ascertainment of annual value.

1. (1) [Subject to the conditions] specified in sub-section (2), the annual value of property shall be deemed to be-
   • (a) in the case of property let on rent to the amount of rent at which the property may reasonably be expected to be let from year to year, provided that the rent at which the property is actually let shall be taken as the annual value if the rent so derived is higher than the amount of rent at which the property may reasonably be expected to be let from year to year; and Provided that if any property has been let along with any machinery or plant, the rent of such machinery or plant shall be excluded in determining the annual value : Provided further that where the property is in the occupation of a tenant and under the rental agreement the owner is liable to pay any amount of rent, rate or tax which, but for such agreement, was payable by the tenant, the said amount shall be deducted from the rent received or receivable in determining the annual value of the property. (2)
   • (a) When the property is let out to a tenant along with furniture other than fixture an allowance to the extent of rent actually received or receivable in respect of such furniture and if it is not separately fixed, such sum as the Assessing Authority may consider reasonable rent for such furniture but not exceeding twenty per centum of the annual value of the property ;
   • (b) an allowance for the expenses incurred on the repairs and maintenance of the building but not exceeding ten per centum of the annual value of such building ;
   • (c) sums paid as land revenue and as premium to insure against the risk or damage to the property.

Appointment of authorities under the Act.

1. (1) The Government may appoint one or more Commissioners and as many Deputy Commissioners, Appellate Authorities and Assessing Authorities, as it thinks fit : Provided that the Government may authorise a Deputy Commissioner to perform the functions of an Appellate Authority as well in respect of any rating area or areas.

A. Control of the Authorities.

1. (1) The general superintendence and control over all authorities under the Act shall be vested with the Government.
2. (2) The Deputy Commissioners and Appellate Authorities shall be subordinate to the Commissioner.
3. (3) Subject to the control of the Commissioner, the Assessing Authorities shall be subordinate to the Deputy Commissioner within whose jurisdiction they perform their functions.
4. (4) Subject as aforesaid and to the control of the Deputy Commissioner, Inspectors and other executive or ministerial staff shall be subordinate to the Assessing authority or to any other authority under whom they are appointed to work.

B. Powers to give instructions.

The Commissioner may from time to time issue such orders, instructions and directions, as he may deem fit, for the proper administration of the provisions of this Act or the rules made thereunder, and all officers and persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Commissioner.

C. Jurisdiction.

1. (1) Deputy Commissioners and the Appellate Authorities shall perform their functions in respect of such areas as the Government may direct.
2. (2) Where by a direction issued under sub-section (1), any area is within the jurisdiction of two or more Deputy Commissioners or Appellate Authorities, they shall perform their functions in accordance with such instructions as the Government may make for the co-ordination of the work to be performed.
3. (3) An Assessing Authority shall perform his functions in respect of such rating area or areas as the Commissioner may direct : Provided that if more than one authority has been appointed for the same rating area, the Commissioner shall specify their exclusive jurisdiction within the area in such manner as he may direct.
4. (4) Inspectors shall perform such functions as may be assigned to them by the Assessing Authority or any other higher authority under whom they are appointed to work.

D. Power to withdraw and transfer cases.--(1) The Commissioner may withdraw any case pending at any stage before any authority under his control and by a written order transfer it from one authority to another of the same rank for disposal and the authority to whom the case is so transferred shall have the powers to deal with the case as if it were within his jurisdiction.

1. (2) The Commissioner may transfer any case from any authority to any other officer as the Government may by notification in Government Gazette, appoint in this behalf and the said officer shall have such powers to deal with the case as are vested in the previously mentioned authority.
2. (3) The transfer of a case under sub-section (1) or (2) may be made at any stage of the proceedings and shall not necessitate the reissue of any notice already issued by the authority from whom it is transferred.

Making of draft valuation list.--(1) The Commissioner shall at any time within six months before a valuation list is to be enforced, publish a notice, in such manner as may be prescribed, requiring every owner of a property situated in a rating area, whether existing at the time of publication of notice or coming into existence thereafter, which is chargeable or may be chargeable to tax under this Act, to furnish to the Assessing Authority a return in the prescribed form within 30 days of the publication of the notice or in case of property coming into existence thereafter within 30 days from the date of such existence.

1. (2) The Assessing Authority may at any time serve a notice in the prescribed form requiring an owner to make a return in the prescribed form within a period specified in the notice.
2. (3) After the expiry of the date specified in the notice issued under sub-section (1), the Assessing Authority shall determine the annual value of the properties on the basis of the returns received and other information and material collected by him. He may also serve on an owner a notice in the prescribed form requiring such owner to produce rental deeds or any other documents to enable him to determine the annual value.
3. (4) The Assessing Authority shall, after determining the annual value of properties, cause a draft valuation list to be prepared for each rating area and publish it in such manner as may be prescribed.
4. (5) Any person aggrieved by any entry in the draft valuation list or omission therefrom of any matter may, in the prescribed manner, lodge an objection with the Assessing Authority at any time before the expiration of thirty days from the date on which the draft valuation list is published.
5. (6) The Assessing Authority may extend the date of furnishing the return required under sub-sections (1) and (2) if he is satisfied that the owner was prevented by a sufficient cause from furnishing the return within the period prescribed or specified as the case may be.

Operation of valuation list.--(1) The Assessing Authority may, after considering the objections, if any made by any owner under sub-section (5) of section 7 and making such other inquiries as he may deem fit, amend the draft valuation list and such amended draft valuation list shall be authenticated as the final valuation list which shall come into force on the first day of April or first day of October, as the case may be, next following the date on which it is finally authenticated and shall remain in force for a period of five years subject to the amendments made in it under section 9 of this Act; Provided that the Government may by an order extend or curtail life of the valuation list by a period of six months or one year.

1. (2) Any person, aggrieved by an entry in the final valuation list authenticated under sub-section (1) of section 8, may within thirty days of the receipt of first notice of demand make an application for review of an entry and if the Assessing Authority is satisfied that the owner was prevented by a sufficient cause from filing objections within thirty days from the date of publication of the draft valuation list, he shall consider the application and after making such enquiries, as may be considered necessary, pass an order: Provided that no such application shall be made unless the applicant has been given an opportunity of being heard.

Amendment of current valuation list.--The Assessing Authority may at any time, as the Government may direct, make such amendments to the valuation list as it deems necessary in order to bring the valuation list in conformity with changed circumstances and in particular may--

1. (a) correct any clerical or arithmetical error;
2. (b) correct any erroneous insertions or descriptions;
3. (c) make such additions to or corrections in the valuation list as the Assessing Authority considers necessary by reason of--
   • (i) a new building being erected after the publication of the valuation list;
   • (ii) a building included in the valuation list being substantially damaged or altered since the values were last determined;
   • (iii) any change in the ownership of any building or land in respect of which tax is leviable; And any such amendment shall be binding on the person in respect of which it is made.

A. Property escaping assessment.--

1. (1) If the Assessing Authority has reason to believe that any property has escaped assessment by reason of destruction or misplacement of valuation list prepared under section 7 and 8 of this Act or for any other reason, he may issue a notice calling for a return in the manner prescribed for under section 7 of this Act.
2. (2) After the receipt of the return, the Assessing Authority shall make an order of assessment and demand the tax payable in accordance with the provisions of this Act: Provided that if the Assessing Authority is not satisfied with the correctness of the return, he shall convey to the assessee the material which he proposed to used for making assessment and give the assessee a reasonable opportunity of being heard.
3. (3) If the assessee fails to furnish the return required under sub-section (1), the Assessing Authority shall Convey to the assessee the material proposes to be use for making assessment and give a reasonable opportunity of being heard.
4. (4) The provisions of this Act relating to recovery of tax, penalty and institution of proceedings shall apply to the assessment under this section.

Appeal and revision.--

1. (1) Any person aggrieved by an order of the Assessing Authority may, within thirty days from the date on which he is served with the notice of demand or in case notice of demand was not required to be served; within thirty days from the service of the said order, appeal to the Appellate Authority: Provided that no appeal shall be entertained unless the tax and/or the penalty which is disputed in appeal had/have been paid before filing the appeal. Provided further that the Appellate Authority may admit an appeal after the said period of thirty days if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period.
2. (2) Nothing in sub-clauses (a) and (b) of the first proviso to sub-section (1) shall apply to cases where the Commissioner in exercise of the powers vested in him under section 14-A makes an order before the date of filing of an appeal extending the date of payment.
3. (3) The Commissioner may, of his own motion or on an application made in this behalf call for the proceeding or order of any authority subordinate to him for satisfying himself as to the correctness, legality or propriety of such proceeding or order/ and may pass such order in reference thereto: Provided that--
   • (i) an application for revision shall not be entertained unless the person applying for the same deposits a fee as may be prescribed for the purpose of taking up the proceeding or the order, as the case may be; and
   • (ii) no revision shall lie if the order is appealable and no appeal has been filed; and
   • (iii) no revision shall lie if an appeal is pending before the Appellate Authority: Provided further that the Commissioner may entertain an application for revision after the said specified period if he is satisfied that the person was prevented by a sufficient cause from filing the application within the said specified period.

Tax to be levied notwithstanding.--Tax shall be levied in accordance with the valuation list in force and shall continue to be collected and be recoverable notwithstanding that any proceeding may be pending with respect to that list.

Tax when payable.--The tax shall be payable in such manner as may be prescribed.

Collection of tax.--The tax shall be collected by such authority as the Government may direct, and in such manner as may be prescribed.

Recovery of tax from tenants.--Where the tax is due from any person on account of any building or land and remains in arrear, it shall be lawful for the assessing authority to serve upon any person paying rent in respect of that building or land, or any part thereof to the person from whom the arrears are due, a notice stating the amount of such arrears of tax and requiring all future payments of rent (whether the same have already accrued due or not) by the person paying the rent to be made direct to the Assessing Authority until such arrears shall have been duly paid, and such notice shall operate to transfer to the Assessing Authority the right to recover, receive and give a discharge for such rent.

A. Power to extend date of payment.--Without prejudice to the provisions contained in section 15-A, the Commissioner or the Deputy Commissioner, if authorised in writing by the Commissioner in this behalf, may for reasons to be recorded in writing extend the date of payment of amount of tax and penalty or allow the assessee to pay the said sum in instalments subject to such conditions including furnishing of security as he may consider necessary.

Penalties.--(l) If any person on king served with such notice as may be prescribed fails to pay within the period specified in the notice any amount due from him on account of the tax, the Assessing Authority may recover from him as penalty a sum not exceeding one-fourth of qe amount of tax so un-paid in addition to the amount of tax payable by him.

1. (2) No such penalty shall be imposed unless the Assessing Authority is Gtisfied that the person liable to pay the tax has wilfully failed tu pay the same and he has been heard in regard to the imposition of the penalty, or given a reasonable opportunity of being heard in that behalf.

A. lnterest on tax and penalty not paid in time.--If an amount of tror or penalty payable under this Act is not paid within the time prescribed or specifled in the notice of demand, as the case may be, the person who is in default, shall in addition to such tax and pemlty, pay interest for the period of default commencing froln the date next following the due date of payment at the rates specified below--

1. (a) if the period of default is of thrse months or less at 1% per month ;
2. (b) if the period of default exceeds three months bit does not ex& six months, at the rate of 2% per month ; and
3. (c) if the period of default exceeds six months at the rate of 3% per month : Provided that where as a result of an order under sections 9 and 15, of this Act or an order of the Court the tax or penali on which interest was payable has been st paid, if any, shall be refunded. Explanation.--(l) Interest shall be charged for full month And not for a part thereof.

1. (2) If the tax or any other sum paid by cheque or draft, the of the cheque or draft, shall be t of tax or such other sum : Provided that the period intervening cheque or the draft in the office of the and drafts and the date on which such as the case may be, to the treasury computation of interest payable by

B Interest on refun&.--Where re&n account of tax or penalty found to have been of an order under section 9 or secti o Court, the Assessing Authority shall pay to per month on the amount of such refund from ate of spent of such amount to the date of which refund is

Provided that where the amount found instalments, such interest shall be instalments which were in excess, instalment was paid to the date on

Provided further that the interest for the commencin from the date of the order under section 9 or sectio r an order f f a Court giving rise to the rehnd shall be paid at 2 month if thd refund is granted beyond a period of three months but a period not1 exceeding six months from the date of such order a % per month if it is granted thereafter.

Note :--Explanations attached to section 15-A f this Act shall apply, so far as they may to the provisions of this sectio

Recovery of dues as arrears of land revenue.--[(l) Arzy lamount of tax, penalty, interest or any other sum payable-urder this Act which is not paid in accordance with the provisions of this Act shall, on & issue of certificate in the prescribed form to the Collector of the concerning district, by recoverable as arrears of land revenue. The shall also be forwarded to the defaulter on his last known addtess.]

1. (f) any amount which a person is rspui to pay to Authority or for which he is liable to the under this section shall, if it remains unpa pmpertw of the said person which sh 11 be if it were an arrear of land revenue ;
2. (g) the Assessing Authority may there is money belonging to the entite amount of such due" from the assessee n discharge such liability.

1. (5) Save as otherwise provided in this notice is issued under sub-section (1) s such notice and in particular where such Banking company or insurer, it shall mt be policy or any other docvment to be prod entry endorsement or like being made Wths?.anding any rule, practice or require EsJ1anation.-For tbe purpose of titi assessce shall be computed after taking have Wen due for payment by sucb mbsisting]

Certification for registration of Property.--Anything contained ia any other Law for the document required to be registered

1. (b) of sub-section (1) of section purports to transfer, assign, limit, any person to or in any property valued at rupees, no registering-offiCCF appointed under mh dacument, unless the Amdng Audmrity
2. (a) such person has either paid or made payment of all existing fbbiilities under
3. (b) the regiWon 9f the,, recovery of any existing

1. (2) The appli&tion for the cettifica r sub-section (1) shall be nrade by the pewn referred to in & &mi1 be in such fxm &all amain sucb part i- +1* u8

[Omitted].

Offences and penalties.-If any person-

1. (a) fails to file the return under section 7 within the time allowed; or
2. (b) fails to furnish the said return; or
3. (c) knowingly furnishes incorrect return; he shall be liable to pay by way of penalty for such defaults-
   • (i) clause (a), a sum equal to 10% of the assessed tax; Provided that no penalty shall be imposed under clause (a) or clause (b) if the assessee satisfies the Assessing Authority that he was prevented by sufficient cause from furnishing the return or filing it within the time allowed: Provided further that where the tax payable is paid by the assessee, the same shall be recovered for the failure to file the return.

A. Powers to take evidence on oath.-The Appellate Authority and the Assessing Authority shall, for the purposes of this Act, have the same powers as are vested in a Court under the Code of Civil Procedure, Samvat 1977, when trying a suit in respect of the following matters, namely:-

1. (a) enforcing the attendance of any person and examining him on oath or affirmation;
2. (b) compelling the production of books of account and other documents; and
3. (c) issuing commissions for the examination of witness.

B. Institution of proceedings and composition of offences.-(1) No prosecution for any offence punishable under this Act shall be instituted except with the previous sanction of the Commissioner and such proceedings shall not be proceeded with until the assessee is given a reasonable opportunity of being heard.

1. (2) The Commissioner may, either before or after the institution of proceedings, compound any matter done or omitted to be done and the composition fee may be to the extent of double the amount of tax meant to be evaded.
2. (3) On payment of the composition fee, the proceedings against the person shall be withdrawn.

Valuation list not to be rendered invalid by certain failures or omissions.-Any failure on the part of the Assessing Authority to initiate proceedings within the time required by this Act or the Assessing Authority to prepare the valuation list or any matters required to be done by the authorities shall not vitiate the proceedings if the authorities act as a public servant within the meaning of the State Ranbir Penal Code, 1989 and exercise any powers vested in it or him by or under this Act.

Assessing authorities and servants to be deemed public servants.-The assessing authorities and other staff appointed under this Act shall be deemed to be public servants within the meaning of section 21 of the State Ranbir Penal Code, 1989.

Exclusion of jurisdiction of Civil Courts.-No suit, prosecution or other proceedings shall lie against any officer or servant of the Government for any act done or purporting to be done under this Act or under the rules made thereunder for anything in good faith done or intended to be done under the provisions of this Act or the rules.

A. Indemnity.-No suit, prosecution or other legal proceedings shall lie against the Government or any officer or servant of the Government for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder.

Power to make rules.-(1) The Government may make all necessary rules for the carrying out of the provisions of this Act.

1. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
   • (a) the appointment, powers and duties of the assessing authorities and other provisions with respect to their functions;
   • (b) notification of appeal;
   • (c) form of appeal;
   • (d) the rate, the manner in which the tax shall be paid to the Government;
   • (e) the proportion of the tax to be refunded or remitted and the manner and conditions to which such refund or remission may be allowed;
   • (f) mode of service of notice.

A. [Omitted]