KMC decides to waive off non-residential surcharge of property tax for IIM Calcutta

Kolkata: Kolkata Municipal Corporation (KMC) has decided to waive the non-residential surcharge of property tax relating to the property of Indian Institute of Management (IIM), Calcutta.

According to KMC, the property belonging to IIM Calcutta, located within the jurisdiction of KMC’s Ward 144, was assessed and mutated. The annual valuation was fixed at Rs 2,29,69,380 (fully non-residential) with effect from January 2013-2014. The total land area of the said property is 135.19 acres with several multi-storied structures of total covered area 1209859.44 sqft.

As on August 11, 2023, an outstanding amount of Rs 17,40,42,727 is lying against this premises. It is learnt that IIM has paid Rs 75604896 only in a suspense account on May 31, 2022. KMC sources said that the director of IIM, Calcutta submitted an application to the civic body in November 2021 with a request of waiving the non-residential surcharge of the property tax since IIM, Calcutta is autonomous body under IIM Act engaged in imparting management education under the administrative control of Ministry of Education.

The proposal by IIM was made under Section 171 (4) of the Kolkata Municipal Corporation Act 1980. According to this section, KMC may, where any land and land building or hut or portion thereof is used for commercial or non-residential purpose, levy a surcharge on the property tax on such land or building or hut or portion thereof at such rate not exceeding 50 per cent of the property tax as the KMC may from time to time determine.

However, Section 172 of the Act deals with exemption of lands and buildings from property tax. According to this Section, KMC may exempt any class or classes of lands or buildings or huts used for educational, medical, public health or cultural purposes or for purposes of sports, from payment of the surcharge and such exemption shall in no case exceed seventy per cent of the surcharge.

Hence, KMC on Saturday, cleared the proposal to waive the 75 per cent non-residential surcharge of property tax for the period January 2013-2014 to April 2023-24 as well as for future periodic demand and subsequent supplementary demand generated due to periodic assessment /re-assessment.