Unit Area Assessment (UAA) – Kolkata Municipal Corporation
The Unit Area Assessment (UAA) system, introduced by the Kolkata Municipal Corporation (KMC) on 1st April 2017, replaced the old Annual Rateable Value (ARV) method of property taxation. This shift was designed to make taxation transparent, objective, and scientific, empowering citizens to conduct self-assessment of their property tax.
1. What is UAA?
The UAA system calculates property tax based on the unit area value (per sq. ft.) assigned to different parts of the city.
The tax payable depends on:
Location of property (Category A–G)
Covered area of land/building
Usage (residential, commercial, industrial, etc.)
Multiplicative Factors (age of property, type of construction, occupancy, road width, etc.)
2. How KMC Divides the City
The city is divided into 293 blocks, grouped under seven categories (A to G).
Category A: Prime areas (highest property value)
Categories B–F: Intermediate zones with moderate property values
Category G: Peripheral, slum, thika-tenanted or underdeveloped areas (lowest value)
Each category has a Base Unit Area Value (BUAV) – the benchmark per sq. ft. value for taxation. For example:
Category | BUAV (₹ per sq. ft./year) |
|---|---|
A | 74 |
B | 56 |
C | 42 |
D | 32 |
E | 24 |
F | 18 |
G | 13 |
3. The Property Tax Formula
Annual Property Tax = BUAV × Covered Area × Multiplicative Factors × Tax Rate (including Howrah Bridge Tax) – Rebate (if any)
Multiplicative Factors (MFs) adjust the base value:
Age of property (older buildings pay less)
Location (road width affects factor)
Occupancy status (self-occupied vs. rented)
Structure type (pucca, semi-pucca, kuchcha, apartment, car parking, etc.)
Usage (residential, commercial, health, hospitality, industrial, etc.)
MF values can range from 0.5 to 8, making the system flexible and property-specific.
4. Tax Rates under UAA
Unlike the old system (11%–40%), UAA applies a flat tax rate between 6% and 20%:
Un-developed Bustee → 6%
Developed Bustee → 8%
Government Properties → 10%
Properties with AV < ₹30,000 → 15%
Others → 20%
Additionally, Howrah Bridge Tax is applied:
0.5% (wards 1–65, 68–88, 90)
0.25% (wards 66–67, 89, 91–100, 115–141)
Nil (wards 101–114)
5. Example of Tax Calculation
Consider a property in Category C (BUAV = ₹42 per sq. ft.):
Covered area = 1000 sq. ft.
Age of building = 25 years (MF = 0.9)
Road width = 10m (MF = 1.0)
Use = Residential (MF = 1.0)
Occupancy = Self-occupied (MF = 1.0)
Structure = Pucca (MF = 1.0)
Tax rate = 20%
Annual Value = 42 × 1000 × 0.9 × 1 × 1 × 1 × 1 = ₹37,800
Annual Tax = ₹37,800 × 20% = ₹7,560 (plus Howrah Bridge Tax)
6. Rebates & Tax Capping
Rebate: 5% rebate is available for timely quarterly payments; additional 5% rebate if all 4 quarters are paid together within the first-quarter rebate date.
Tax Capping: To prevent hardship, property tax cannot increase or decrease by more than 20% of the previously assessed tax (if no major change in property nature/character).
7. Benefits of UAA
Transparent and equitable tax system
Empowers citizens with self-assessment
Eliminates arbitrariness of rent-based valuations
Recognizes socio-economic realities (e.g., slums under Category G, RR colonies under Category E)
Brings Kolkata’s taxation model closer to international standards
Conclusion
The Unit Area Assessment (UAA) system marks a shift towards clarity, fairness, and efficiency in Kolkata’s property tax regime. By linking tax directly to property size, location, and usage, and by allowing rebates and self-assessment, KMC has created a system that benefits both citizens and the administration.
For detailed BUAV values, Multiplicative Factors, and self-assessment forms, property owners can visit the official KMC website.
👉 Would you like me to also prepare a downloadable infographic (flowchart + formula + example) that can go alongside the blog for easy citizen reference?