Amendment to KBT proposed by T.J Joseph Deputy Tahsildar, Kottayam..

1. From
T.J Joseph
Junior Supdt.
Collectorate ,Malappuram.
To
The Director,
ILDM,Thiruvananthapuram
Respected Sir,
Sub: Amendment of Kerala Building Tax Act-
Proposal –Forwarding.
Kindly recall the decision taken during the meeting on 28-08-
2011 regarding the proposal for the amendment of Kerala
Building Tax act.
Decisions Taken.
A. Sri T.J Joseph is entrusted to prepare a proposal for
amendment to the Secretary ,ILDM before 15/09/2011.
B. The proposal will be discussed and modified in the
workshop to be conducted at ILDM by participating
revenue officers from various districts who are expertise in
the subject. A draft Act will be prepared in the workshop.
Accordingly I am forwarding herewith a proposal with the
following points. I request that the proposal may be
discussed and a draft act may be prepared in the
proposed workshop as decided.
Introduction.
Kerala Building Tax Act-1975 is an act to provide for
the levy on buildings. The responsibility to realise the tax is
vested on Revenue Department. The tax is realised
according to Kerala Building Tax Plinth Area Rules-1992.

2. Lot of difficulty is experienced by Revenue officials
during the process of booking of buildings, assessing and
realising the building tax. Some of them are mentioned
below.
i. It is difficult to determine whether a building is booked
for assessment or not, as the owner of the building
fails to file return suo moto.
ii. The present KBT Act allows exclusion of luxury areas
such as car porch, garages etc. from assessment.
iii. Many buildings escapes assessment.
iv. There is no effective steps for the assessment of flats
and multi purpose buildings.
v. The present rate of tax is too low.
vi. Delay occurs in every stage of assessment.
As a remedy to the above defects. the act need
to be amended by incorporating the following points.
1. Prevention from buildings escaping assessment.
In the present scenario, it is difficult to determine whether a
building is booked for assessment or not, as the owner of the
building fails to file return. It is also difficult to determine
whether a building is assessed or not. So a huge number of
buildings escapes assessment. As a remedy to the situation it is
proposed that
Before the construction of each building, the building owner
should file a declaration before the V.O about his intention to
construct a building in the land along with a self attested copy
of the approved plan.
The declaration must be filed within 30 days after the approval
of plan by the LSG body. Penal interest @ 2% of the tax
assessed may be imposed per mensum for the delay in filing
the declaration.

3. 2. Plinth Area- Cancellation of exemption given to car
porches, garages etc.
The present KBT Act allows exclusion of car porch, garages etc
from assessment. Now a days these are constructed with great
investment and luxury. So the exemption may be cancelled.
All additional buildings such as car porch, guard houses, out
houses , garages etc in the same compound constructed for the
beneficial enjoyment of the main building and owned by the same
owner may be added to plinth area .
3. Multy Purpose Buildings.
Buildings are assessed by dividing into two categories. “
Residential buildings “ and “ Other Buildings”. But lot of
problems arise while assessing buildings constructed for both
commercial and residential purposes. Separate assessment of
each part leads to erosion in tax and many buildings are totally
exempted from assessment. As a remedy to the situation it is
proposed that
If the area of the non residential portion of a building exceeds 50
sq. mts. the whole building to be treated as “other building” and
must be assessed accordingly. In other cases, the whole area may
be treated as “residential” for assessment.
4.. Filing of Return.
Return to be filed within 7 days after occupation or obtaining
House No. from LSG body whichever is earlier.
Penalty for delay may be 2% of the eligible tax per month.
This will ensure filing of return by the asessee in time.
5. Assessment of flats.
Assessment by taking the building as a single unit is
not possible in many cases. Also, assessing each flat as a

4. separate unit results in escaping assessment. Hence it is
proposed that
1.Instead of assessing the whole building as a single unit,
flats may be assessed separately .
2.Only residential portion may be assessed and common
space may be exempted.But special tariff equivalent to that
for “other buildings” may be imposed for assessment..
6. Exemption from assessment.
Exemption from assessment of tax may be limited to
1.Govt Buildings.
2.LSGD Buildings.
3.Religious–worship centres.
4.Educational institutions.
However these institutions also shall file declaration.
7. Time limit for various activities.
1.Return- within 7 days before occupation.
2.Report for assessment by V.O- within 30 days of receiving the
return.
3.Issue of assessment order – within 60 days of filing the return.
4. Filing Appeal- within15 days on receipt of the assessment
order.
5.Disposal of appeal.- within 90 days on receipt of appeal.
6-Filing Revision- within 90 days on receipt of request.
(Period of stay may be exempted,)

5. 8. Rate of Tax.
The present rate came into existence in the year 1996.Now
15 years have been elapsed and the rates need revision with a
reasonable hike.
Also,the rate may be made uniform for all LSG areas.
A- Residential Bldg.
Area(Sq M) Tax.(Rs)
100-150 3000
150-200 6000
200-250 12000
Exceeding 250 - Rs.3000 for every addl 10 sq m
B- Other Bldg.
Area(Sq M) Tax.(Rs)
above.50- 75 3000
above.75-100 6000
above.100-150 12000
above.150-200 24000
above.200-250 48000
Exceeding 250 -Rs.6000 for every addl. 10 sq. m
C –Flats .
Area(Sq M) Tax .(Rs)
above.50- 75 3000
above.75- 100 6000
above.100- 150 12000
above.150- 200 24000

6. above.200- 250 48000
Exceeding 250 -Rs.6000 for every addl 10 sq. m
9.Penalty.
1.Delay in filing declaration-(Before starting construction)-2% of
tax p.m.
2.Delay in filing return-(after completion of construction)-2% of
tax p.m
3.Defaulted.payment- 2% of the total tax p.m.
10. Luxury Tax.
The provision to realise annual luxury tax may be included
in the proposed Act. Buildings with plinth area more than 278.76
sq.m is liable to be assessed for luxury tax @ Rs.2000 p.a .Now
10 years have been elapsed since the introduction of luxury tax
.Hence the rates have to be revised with a reasonable hike. The
proposed rate is as follows.
PlinthArea(Sq.M) Tax (Rs)
Below 250 nil
250- below 300 3000
300- below 350 6000
Rs.1000 for every additional 10 sq.mts and parts there of .
11-Identification of the assessee.
The Declaration form and Return should contain
1.The personal details ( address,Phone No,UID
No/Adhar No etc.)
2.The Land details.( Block .Sy/sub dvn. No.etc.)
3. The building details.
Yours faithfully

7. T.J Joseph