Guide-line for allowing exemption of property tax of enlisted Heritage

Buildings u/s 425K of K.M.C Act 1980 (Amended)1,

1. Property tax may be exempted for Grade - I Buildings.

[Grade -I : No external change will be permissible. Use of the building should also be compatible
with the category of the heritage building.]

2. Property tax may be exempted for Grade - II Buildings subject to that no new construction has
been made after introduction of CHAPTER - XXIIIA (PRESERVATION AND
CONSERVATION OF HERITAGE BUILDINGS) in the KMC Act 1980 (Amended) i.e. after

22/12 /1997.

[Grade -II : Same as Grade-1 for the heritage building. But new construction may be allowed in
the open land within the premises in compatible manner with the heritage building. In no case
new construction should obstruct the view of the heritage building.]

3. Any renovation / restoration / repairing / addition & alteration / modification should get prior
approval of Heritage Conservation Committee and the work should be done under supervision of
an Empanelled Conservation Architect.

4. The building is maintained in a very good condition keeping the original facade intact.

5. The building should be either an institutional building or a residential building without having
any commercial activity. In future the premises would not be let out for any commercial purpose.
Details of earning as well as the expenditure for maintenance of the building from the heritage
property has to be furnished along with the application.

6. The exemption in property tax will be allowed for one 'General Revision Cycle' as
maintained by Assessment Department of The Kolkata Municipal Corporation. It may be
continued further for next 'General Revision Cycle' after satisfaction of the Heritage
Conservation Committee regarding maintenance of the Heritage Building as well as
compliance of the requisition as mentioned herein.

1
Mpl. Commissioner’s Circular No. 20 of 2007-08, dated 31 st August, 2007. Available at
https://www.kmcgov.in/KMCPortal/jsp/ExemptionTax.jsp
 7. Generally no hoarding or signage should be displayed save and except one signage for
identifying the property.

8. One plaque has to be erected in a position suitable for public viewing, depicting the Heritage
value of the property as per design and guideline of Kolkata Municipal Corporation.

9. Applicant should allow visitor to appreciate the interior of the building as well as the artifacts
if available thereto. In case of a private residential building a mechanism may be adopted by
means of visitor's fee or ticket at a reasonable rate to regulate the visitor for at least a portion of a
building and / or a specific time period keeping the privacy of the residents.

10. Any change of use will require prior approval of Heritage Conservation Committee.

11. In case of a multi ownership property or in case of a partitioned property, all the owners or
cosharers of the heritage property has to apply jointly.

12. There should not be any arrear tax and tax exemption should take effect from current quarter
of tax cycle. No retrospective claim should be entertained.

13. The Kolkata Municipal Corporation has the right to revoke the exemption of the
property tax if there be any violation of the aforementioned conditions.

The abovementioned document is the only operative manual available that demarcates the
parameters for the acceptance and revocation of the exemtion of property tax for heritage
buildings. Therefore, it may be useful to determine whether the conditions under the circular
have been met.

In light of the abovementioned circular, the following defences may be raised:

1. In light of clause 6,
i. Whether the ‘General Revision Cycle’ delineating the time period for which the
exemption was granted had come to an end?
ii. Whether the Heritage Conservation Committee was approached by the KMC for
considering the client’s case?
iii. Whether the termination of the tax exemption was communicated after the report
of the Heritage Conservation Committee was taken into considerattion?
2. In light of clause 13, whether the revocation of the exemption has been done due to the
violation of any of the conditions as specified in the circular?