The Kolkata Municipal Corporation has launched a six-month property tax waiver scheme for 3,86,288 defaulters, offering full relief on interest and penalties for residential and government properties while targeting ₹784 crore in collections by 31 March 2027.
KMC administrator Smita Pandey announced the scheme at a press conference at the civic body’s office. She said the corporation has total outstanding property tax dues of ₹6,854.29 crore. This includes ₹3,138.76 crore in principal tax, ₹3,314.13 crore in interest and ₹401.38 crore in penalties.
The waiver will remain open for six months until 31 March 2027. Its duration may be extended by another two months depending on the situation, according to the details shared by KMC. The scheme is intended to help the civic body recover long-pending dues while giving taxpayers an opportunity to settle their accounts on revised terms.
The relief varies according to the use of the property. Residential and government properties will receive a 100% waiver on both interest and penalties. For commercial properties, the scheme provides a 70% waiver on interest and a 99% waiver on penalties. Mixed-use properties will receive an 80% waiver on interest and a 99% waiver on penalties.
Taxpayers can apply online through the KMC website, kmc.wb.gov.in, or submit applications offline at the corporation’s assessment collection offices. KMC will also set up assistance booths at every borough office to help residents access the scheme and complete the application process.
The civic body has also clarified how certain existing cases will be handled. Penalties recently collected from taxpayers will be adjusted under the scheme, according to Pandey. In cases pending before courts, taxpayers will have to withdraw the cases before settling their dues under the waiver provisions.
The scale of the arrears highlights the collection challenge facing Kolkata’s municipal administration. The principal tax accounts for less than half of the total outstanding amount, while accumulated interest and penalties together make up the larger share. KMC’s decision to waive these additional charges is therefore tied directly to its effort to convert long-pending claims into actual revenue.
The scheme’s implementation will depend on how efficiently applications are processed across online systems, assessment collection offices and borough-level assistance booths. For property owners, the key requirements are the settlement of eligible dues under the applicable category and compliance with the conditions attached to pending legal cases. KMC’s stated collection target is ₹784 crore during the scheme period.
