The Kolkata Municipal Corporation has announced a 100% waiver on interest and penalties for outstanding residential and government property taxes, giving defaulters until March 31, 2027, to settle their dues without these additional charges.
KMC commissioner Smita Pandey said the waiver would cover the full interest and penalty amounts for residential properties. The civic body has also announced separate concessions for commercial and mixed-use properties. Commercial property owners will receive a 70% waiver on interest and a 99% waiver on penalties, while mixed-use properties will receive an 80% waiver on interest and a 99% waiver on penalties.
The scheme may be extended beyond March 31, 2027, Pandey said. If it is extended, the interest waiver for non-government properties will be reduced to 60%, while the penalty waiver will remain at 99%. The KMC is expected to publish details on its website and through separate advertisements. QR codes in the advertisements will direct taxpayers to the civic body’s online information and payment facilities.
Property tax is the KMC’s largest source of revenue, but officials said collections have declined amid the civic body’s prolonged financial difficulties. A nearly month-long technical problem in the KMC’s main server and the dissolution of the existing KMC board were among the factors officials cited for the fall in collections.
The scale of the outstanding liability is significant. KMC officials said property-tax dues stood at more than ₹6,800 crore until September. This included over ₹3,300 crore in interest and more than ₹400 crore in penalties. The number of defaulters has crossed three lakh, according to the officials.
For taxpayers, the scheme reduces the cost of clearing arrears, particularly for accounts where interest and penalties have accumulated over several years. The concession also gives the civic body a mechanism to pursue collection of the principal tax dues while attempting to recover revenue lost during a period of operational and administrative disruption.
This is the second KMC property-tax waiver scheme introduced by the state government for defaulters since 2020. The latest measure is part of a wider state initiative covering seven municipal corporations. Similar schemes were introduced earlier this month for Bidhannagar, Howrah, Chandannagar, Durgapur, Asansol and Siliguri.
Taxpayers can pay their outstanding dues online through the KMC website or visit the civic body’s assessment and collection offices. The waiver will remain available until March 31, 2027, unless the state government extends the scheme under the revised concession terms announced by the KMC.
