The Unit Area Assessment (UAA) system was introduced by the Kolkata Municipal Corporation (KMC) to make property tax assessment more transparent, scientific, and citizen-friendly. It replaces the old system of rent-based valuation and provides a fair, uniform method for calculating property taxes.
1. What is UAA?
The UAA method calculates annual property tax based on the per sq. ft. unit area value (UAV) assigned to different locations in the city.
Taxes are determined by:
Location of the property
Category of the area (A–G)
Usage (residential, commercial, industrial, mixed-use, etc.)
Covered area of the property
2. How KMC Divides the City
Kolkata is divided into seven categories (A to G):
Category A → Prime localities with the highest property value (e.g., Park Street, Ballygunge, Alipore)
Categories B to F → Intermediate areas with moderate property values
Category G → Peripheral or less developed areas with the lowest property value
Each category has a Base Unit Area Value (UAV) fixed by KMC.
3. Formula for Property Tax
The annual property tax is calculated as:
Annual Property Tax = (UAV × Covered Area × Multiplicative Factors) – Rebate (if any)
Multiplicative Factors include:
Nature of use (residential, commercial, mixed)
Age of property
Type of construction (pucca/semi-pucca)
Occupancy status (self-occupied or rented)
4. Example Calculation
Suppose:
Location: Category C
Unit Area Value (UAV): ₹40 per sq. ft.
Property size: 1000 sq. ft.
Use: Residential, self-occupied
Multiplicative Factor: 1.0
Annual Value = 40 × 1000 × 1.0 = ₹40,000
If the property tax rate is 10%, then:
Tax = ₹4,000 per year
5. Benefits of UAA System
Provides a uniform and transparent tax structure
Enables easy self-assessment by property owners
Reduces chances of arbitrariness or disputes
Brings Kolkata in line with global property tax models
Conclusion
The Unit Area Assessment (UAA) system under KMC simplifies property tax calculation for Kolkata residents. By linking taxes directly to property size, location, and usage, it ensures fairness while encouraging compliance.