The Kolkata Municipal Corporation has introduced 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 tax collections by 31 March 2027.
KMC administrator Smita Pandey announced the scheme at a press conference at the civic body’s office. The waiver is intended to recover long-pending property tax dues from residents and other property holders. The scheme will remain open until 31 March 2027, with the possibility of a further two-month extension depending on the response and prevailing circumstances.
According to figures shared by Pandey, the municipal corporation has total outstanding property tax dues of ₹6,854.29 crore. This includes an outstanding principal tax amount of ₹3,138.76 crore, interest of ₹3,314.13 crore and penalties amounting to ₹401.38 crore.
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.
The structure of the scheme separates the original tax liability from the additional burden accumulated through interest and penalties. This allows the KMC to seek recovery of the principal amount while reducing the cost of settling older dues for eligible taxpayers. The civic body has set a collection target of ₹784 crore through the initiative.
Applications can be submitted online through the KMC website, kmc.wb.gov.in. Taxpayers can also apply offline at assessment collection offices. The corporation will establish an assistance booth at every borough office to help residents understand the process and submit applications.
The scheme also covers some payments and disputes that have already reached the municipal system. Pandey said penalties collected from taxpayers in recent days would be adjusted under the waiver provisions. In cases pending before courts, taxpayers will have to withdraw the cases before settling their dues under the scheme.
The scale of the arrears places property tax collection at the centre of KMC’s revenue administration. The figures indicate that interest has accumulated to more than the outstanding principal tax amount, while the large number of defaulters shows the extent of unresolved dues across the city’s property base. The waiver therefore functions both as taxpayer relief and as an attempt to convert long-pending assessments into realised municipal revenue.
For property owners, eligibility, assessment records and the calculation of the principal amount will be important to the settlement process. The KMC’s online and offline channels, along with the borough-level assistance booths, are expected to serve as the primary points for applications and clarification during the six-month window.
The scheme will remain in force until 31 March 2027. The KMC will review the situation before that deadline and may extend the waiver period by two months, according to the administrator’s announcement.
