Unit Area Assessment (UAA) System: A Complete Guide
The Unit Area Assessment (UAA) System is a modern approach to property taxation in Kolkata introduced on 1st April 2017, replacing the older Annual Rateable Value (ARV) system. This system ensures transparency, fairness, and allows property owners to perform self-assessment of their property tax.
🏢 ARV System – The Old Method
Under the ARV system, property tax was calculated based on the Annual Rateable Value (ARV), which considered the actual rent or reasonable rent of a property minus 10% for maintenance. Tax rates varied from 11% to 40%, and commercial properties faced an additional 50% surcharge.
Issues with ARV:
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Highly subjective, leading to potential unfairness
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Difficult to establish reasonable rent for various properties
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Prone to misrepresentation of rent
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Low citizen compliance
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Frequent litigation due to disputes
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No provision for self-assessment
📐 Unit Area Assessment (UAA) System
The UAA system divides Kolkata into 293 blocks, classified into seven categories (A–G) based on market value, infrastructure, and facilities. Each category has a Base Unit Area Value (BUAV), where ‘A’ is the highest and ‘G’ the lowest.
Special provisions:
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Bustees/slums/thika-tenanted areas categorized as ‘G’
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Recognized RR colonies/EWS & BSUP schemes categorized as ‘E’
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Multiplicative Factors (MFs) adjust the BUAV based on:
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Age of property
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Structure type
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Location within block
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Occupancy type
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Purpose of use
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Advantages of UAA:
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Flat tax rate between 6%–20% (e.g., 8% for developed bustees)
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Tax of an individual flat does not depend on cumulative AV of all flats in a building
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Transparent, equitable, and non-discretionary
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Enables self-assessment by property owners
📝 Self-Assessment Procedure
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Property owners can obtain the Scheme document from KMC offices or the official website.
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Fill out the Self-Assessment Form with:
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BUAV
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Covered space / land area
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Relevant MF values (Age, Structure, Usage, Location, Occupancy)
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Applicable tax rate
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Submit the form online or offline within 60 days from the date of scheme publication.
Annual Property Tax Formula (UAA):
🔑 Conclusion
The UAA system modernizes property taxation in Kolkata by making it transparent, equitable, and citizen-friendly. By empowering property owners to self-assess and clearly defining BUAV and MF values, the system reduces disputes, improves compliance, and ensures a fairer tax regime.
For detailed BUAV, MF values, tax capping, and self-assessment forms, refer to the official KMC Scheme and guidelines.