KOLKATA OPENS A PROPERTY TAX RELIEF WINDOW, WIPES OUT INTEREST AND PENALTIES FOR RESIDENTIAL OWNERS
October 9, 2026
The Kolkata Municipal Corporation (KMC) has announced a major property tax relief scheme, offering residential property owners a 100 per cent waiver on accumulated interest and penalties if they clear their outstanding dues within the stipulated period.
Announced on Thursday by KMC commissioner Smita Pandey, the scheme will remain in force until March 31, 2027. The initiative is intended to encourage defaulters to settle pending property tax liabilities and improve revenue collection by the civic body.
Under the scheme, government and residential properties will receive a complete waiver of interest and penalties. Commercial property owners will be eligible for a 70 per cent waiver on interest and a 99 per cent waiver on penalties. For mixed-use properties combining residential and commercial activities, the waiver will cover 80 per cent of interest and 99 per cent of penalties.
Pandey said the scheme could be extended beyond March 31, 2027. However, if the deadline is extended, the interest waiver for non-government properties will be reduced to 60 per cent, while the penalty waiver will remain at 99 per cent.
The latest initiative marks the second property tax waiver scheme introduced by the state government for defaulters since 2020. The KMC has been facing financial difficulties, with officials attributing declining collections partly to technical problems affecting the corporation’s main server and the dissolution of its existing board.
The scale of outstanding dues remains substantial. According to civic officials, unpaid property tax exceeded ₹6,800 crore as of September, including more than ₹3,300 crore in accumulated interest and over ₹400 crore in penalties. The number of defaulters has crossed three lakh.
Property owners will be able to obtain details of the scheme through the KMC website and separate advertisements issued by the civic body. Outstanding dues can be paid online or at the corporation’s assessment and collection offices.
The initiative forms part of a broader state government programme covering seven municipal corporations, with similar property tax relief schemes already introduced in Bidhannagar, Howrah, Chandernagore, Durgapur, Asansol and Siliguri.
