August 6, 2024: In a move that aims to benefit property tax defaulters, the Kolkata Municipal Corporation (KMC) has introduced a new waiver policy on property tax from August 1, according to media reports. Under the policy, the penalty and interest to be deducted depends on the period of default has come into effect. Those who have defaulted for a shorter period will be entitled to a higher waiver. On the other hand, those who have defaulted for more days will be required to pay higher tax.
The KMC had initially planned to launch the new waiver scheme on April 1, 2024. However, it witnessed delays due to the Lok Sabha elections.
Under the new plan, property owners who have not paid their property tax for more than 10 years will be allowed a 35% waiver on interest and 25% waiver on penalty. Tax defaulters for more than five years but less than 10 years are entitled to a 40% waiver on interest and 50% waiver on penalty.
For taxes that have remained unpaid for more than two years but less than five years, waiver in the form of 45% of the interest and 99% of the penalty is allowed. On the other hand, those who have not paid property tax for less than two years can have 50% of the interest and 99% of the penalty waived.
In the old system, property tax defaulters were allowed a waiver of up to 99% of the penalty and up to 50% of the interest if the defaulter pays the entire outstanding amount.
KMC new waiver policy
| Default period | Penalty waiver | Interest waiver |
| More than 10 years | 25% | 35% |
| 5 to 10 years | 50% | 40% |
| 2 to 5 years | 75% | 45% |
| Less than 2 years | 99% | 50% |
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