Kerala Building Tax Act 1975 - Plinth area rules James Joseph Adhikarathil Land matter consultant and Trainer 9447464502

KERALA LAND REVENUE
DEPARTMENT
Training for SMART REVENUE COLLECTION.
T. James Joseph

Training
 Learn.
 Unlearn.
 Relearn.

SMART REVENUE COLLECTION.
It Is TEAM work.
 T-Together
 E-Everyone.
 A-Achieves.
 M-More.
 Team work makes the DREAM
work

SMART REVENUE COLLECTION.
COMMUNICATION is the life line.
 Forms.
 Notices.
 Letters.
 Orders
 Conferences. Say No to
reminders.

SMART REVENUE COLLECTION
 S- Specific.
 M- Measurable.
 A-Achievable.
 R- Result oriented.
 T- Timebounded.

Achieving the target. Obstacles
 Poor team work.
 Lapses in court case monitoring.
 Lapses in identifying the building.
 Unrealistic target.
 Absence of resources.
 Poor inspection mechanism/review.

Plinth area rules.
 Kerala Building Tax Act 1975
 Kerala Building Tax Rules 1974
 01/04/1973 – Plinth area rules.
 01/04/1999- Luxury Tax.

Plinth area rules.
 Independent Act.
 Independent mechanism
 We have our own laws
 Need not require any support.
 Respect the tax payer and his
privacy.

Building tax file.
 Document to be retained as
D:Dis
 Will be verified by several
authorities.

KERALA BUILDING TAX ACT- 1975
S.2. What is the nature of building liable for
assessment.?
Any structure and its parts inside the
compound but does not include portable
structures ,buildings made of mud ,bamboo,
grass, leaves, or thatch and a latrine.

Assessment of KBT is based
on Plinth area..01/04/1973
 Residential.
 Other buildings.
 Mixed.
 Flats.
 Extensions.
 Exemptions.

Exempted buildings. S.3.
Government is the authority to exempt and there is
bar of suits.
 Government Buildings.
 LSG Buildings.
 Charitable institutions.
 Factories .
 Workshops.
 Building constructed with govt.grant.
>25%
 Educational institutions.

bar of suits.
 Factories- mere SSI registration not
enough- Must have all licenses
Administrative area/office liable for
assessment.

bar of suits.
 Educational institutions-
Administrative office should be assessed.
Hostel for exclusive use of students of the
institution need not be assessed.
Convent buildings need not be assessed.

Exempted portion of residential
buildings.
 All car porches.
 Garages.
 Fire wood storage.
 Toilet.
 Cattle/pig/chicken farm for commercial
purpose.
 Uncovered Terrace.
 Steps.

Eligible date of assessment .
 Date of completion or
 Date of Residence whichever is earlier.

Booking Building tax cases.
 Obtain list from LSG-
 Check whether it is new building or
extention.
 Measure the building after issue of notice.
 Form II, III , IV to be served.
 Educate the owner.
 Convince the owner the area liable for
assessment.

Educate the owner.
 Building tax one time tax .
 Luxury tax.
 Assessment strictly based on Plinth area.
 Slab system of taxes.
 Eligibility for exemption.
 Renovated buildings with increased area will be assessed.
 Eligibility for instalment. 4 quarterly .
 Importance of filing return.
 Must appear for hearing.
 Interest for default.
 Provision for revision.
 Must keep the tax receipts.
James Joseph adhikarathil 9447464502

FORMS
 Form I – List of buildings liable for assessment.( VO ).
 Form II - Return of completion of building (Assessee).
 Form III- Notice to submit return.
 Form IV - Notice for hearing.
 Form V - Assessment order by Tahsildar.
 Form VI- Demand Notice.
 Form VII – Appeal to RDO
 Form VIII- Revision Application to Collector.
 Form IX – Demand notice for the revised assessment.
 Form X - Application for refund.

REGISTER.
 A- register of assessment - Taluk office
 B- register of assessees - Village Office.
 C- register of reported cases- village Office.
 D- Register of Luxury tax cases. – Village Office.
 Annexure 12- VOM – Register of buildings having
possibility of extention.

Authority.
 Assessment – Tahsildar.
 Appeal – RDO
 Revision- District Collector./Government.
 Exemption- Government.
 Reporting.
 Communication. Village Officer.
 Collection.

Appeal.
 Should be submitted to RDO in form VII within 30
days of assessment.
 Delay can be condoned upto 6 months.
 25% of assessed tax should be remitted.
 ORIGINAL/ATTESTED COPIES OF CHALAN AND
ORDER OF TAHSILDAR.
 Legal benefit stamp Rs 100 plus court fee stamp
 Stay petition may also be included.
 RDO should inform tahsildar about the appeal.

Revisiion.
 Should be submitted to District collector in form
VIII within 30 days of appeal order.
 No statutory application form.
 Provision for suomoto revision..
 50%of assessed tax should be remitted.
 Government can revise the order.

Important points
1. As per finance act 2011 if the assessed
residential area is above 4000 an additional 2%
housing cess has to be realised.
2. Home stays run as part of tourism promotion
belongs to Other buildings.

Important points
3. If the area is decreased after sale of the
buildings remitting luxury tax the tax may be
exempted.
4. No collection charge required in the the case
of building tax realised through RR.

Important points
5. PSUs and Board buildings are not exempted
6. Buildings having SSI registration are not
exempted.
7. LSG Buildings constructed with own fund - Fully
exempted.
8

Important points
8. Administrative block of educational institutions
not exempted.
9.Property tax may be allowed to remit only after
remitting arrears of Luxury tax.
10. As per finance act,relaxation to buildings
having area more than 2000 sq ft- 50 % tax only if
the have fulfilled 3 conditions.

Assessment.
 11. Low cost buildings constructed as per plan
of government agency deserves 12.5% tax
rebate.
 12. Excess 15% tax for flats and apartments.
 13.All car porches of residential buildings are
exempted.
 14. Violation of the exemption invite tax
assessement with 12% penalty.

Assessment.
15. Payment of Building tax do not guarantee
right over the land.
16. Tahsildar can revise area reduction cases in
the case of Luxury tax.
17 . Truss roof area exempted if it not converted
to a usable area.

Assessment.
18. Flat should be assessed separately for
individual owners. Excess rate 15%
19. Common area should be calculated and add
the proportionate are to the individual flat
area.
20. Several flats owned by a single owner should
be assessed as a single unit for building tax
/luxury tax assessment. If any part selling
occurred, luxury tax can be revised.

Assessment.
18. Flat should be assessed separately for individual
owners.
19. Common area should be calculated and add the
proportionate are to the individual flat area.
20. Several flats owned by a single owner should be
assessed as a single unit for building tax /luxury tax
assessment. If any part selling occurred, luxury tax
can be revised.
21. Several independent residential buildings in the
same compound shall be assessed separately.

Assessment.
22. For renovated buildings with increase in plinth
area, total area will be assessed and tax
remitted earlier if any, will be deducted.

Appeal.
 Should be submitted to RDO in form VIII within
30 days of assessment.
 Delay can be condoned upto 6 months.
 25% of assessed tax should be remitted.
 Stay petition may also be included.
 RDO should inform tahsildar about the appeal.

LUXURY TAX. 01/04/99
 Slab 1. 287.4 sq m – 464.50 ---- Rs.5000
 Slab 2. 464.51sq m – 696.75--- -- Rs.7500
 Slab 3. 696.76 sq m – 929.00---- Rs.10000
 Slab 1. 929.01 sq m -onwards --- - Rs.12500
Rebate of 20% for advance remittance for 5 yrs.
Should be reassesed if reduction in area claimed.

S.7. Return
1. Responsibility of the owner to file return
before the tahsildar .
2. Service of notice to file return within 30
days
3. Power of tahsildar to extend the timeline.
4. If any person hesitate to file return
tahsildar can assess the bulding to the best
of his judgement.

S.8. Freedom of the owner to
file return.
1. Owner has the freedom to file or correct
the return any time before the assessment.

S.9. Assessment.
1. If the return is correct and complete direct
assessment order can be issued by Tahsildar.
2. If tahsildar is not satisfied service of notice to
assessee for hearing.
3. Issue of assessment order.
4. Notice to produce further evidence.
5. Issue of assement order to assessee failed to
produce evidence.

S.10. Demand notice.
1. Demand Notice to be served with
assessment order

S.11. Appeal.
1. Appeal before the RDO
2. In the prescribed form,stamped along with
25% tax remitted proof.
3. To be filed within 30 days of service of A.O.
Delay upto 6 months can be condoned
4. Hearing to be conducted.
5. Assessment authority to be present in the hearing.
6. RDO can confirm reduce enhance or remand the assessment.
7. Appellate order to be communicated to tahsildar.
8.Appellate order cannot be questioned in court.

S.12 Reference to court.
1. The RDO either suomotu or on application
convinced that question of law involves in
the matter He can refer it to District
court.

S.13. Revision by District Collector.
1. District Collector can either suomotu or on
application initiate revision. Hearing to be
conducted. DC shall not call for the assessment
file directly.
2. The revision application should be within 30 days
of receipt of the appellate order in the prescribed
form along with proof of 50% tax remittance.
3. No revision on pending appeal.
4. Suomotu revision must be within 3 months of the
appellate order.

S.14. Revision by Government.
1. Government can either suomotu or on
application revise the order within 60 days
of the service of the revision order.
2. Decision after hearing.

S.15. Revision by Government.
1. Appeal authority or revisioning authority
either on application or suomotu can
rectify any mistake apparent on records.
2. If there is any change in assessment, the
assessee should be heard.
3. Refund or realisation of excess tax can be
done.
4. Notice to pay enhanced tax.

S.17. Hearing, a quasi judicial
process.
1. Attendance.
2. Compelling production of documents.
3. Issuing commissions.

S.18. Installment facility for
tax remittance.
1. Attendance.
2. Compelling production of documents.
3. Issuing commissions.

S.19. Interest.
1. 6% interest for delayed payment.
2. Arears of tax will invite first charge.
3. No Collection charge if collected through
RR

S.20. Refunds..
1. .

S.21. Punishments..
1. Penal provision for submitting false
statements by the assessee.
2. IPC 177.

S.22. Penalty for delayed
return..
1. Penalty @ RS 5 per day from the receipt of
notice.

S.23. Power of Inspection
1. Revenue officers have power to inspect
when authorised.
2. Notice to be given.
3. Penalty for obstruction -3 months
imprisonment and Rs 500.

S.24. Prosecutions.
1. .

S.25. Service of notices
1. .

S.26. Power to make rules.
1. .

S.27. Bar of suits.
1. .

S.28-Computation of the
period of limitation.
1. .

S.29-Building tax shoud not be
the basis of fixing fair rent..
1. .

S.30-Removal of difficulties.
1. .

S.31-Repeal of KBT ordinance
1974.
1. .

Thank You!!
 .
T. JAMES JOSEPH MOB -9447464502
WEB- www.slideshare.net.in/mysandesham.
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Kerala Building Tax Act 1975 - Plinth area rules James Joseph Adhikarathil Land matter consultant and Trainer 9447464502

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