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The
Assessment of Annual Valuation of any property
is done either through the process of General
Revaluation (GR) or through Interim Revaluation
(IR). Periodic Revaluation of existing land/building
is undertaken through GR in every 5-year cycle.
Interim Revaluation (IR) is restored to when
there is any addition/alteration in the land/building
or increase/decrease in rental value in between
a GR.
The assessment process starts with issuing a
notice to the Land/Building owner asking to
submit true and correct returns of the rent
or annual value there of in form 'B' and a true
and correct description of the building containing
such particulars as the assessor may direct.
After receipt of the documents submitted by
the assesses, Assessor Physically inspects the
site in order to verify the supplied documents.
The details of the preemies, which are noted
in a field book through such inspection are
taken into consideration for proposed Annual
Valuation.
Once the Proposed Annual Valuation is done by
DCC it is informed to the Assesses and asked
for appeal (if it is not agreed by the assesses)
in 30 days. Unless there is any appeal from
the assesses the proposed Annual Valuation is
Considered as Final.
If there is any appeal (Using 'P' Form) from
the assessee within the stipulated time the
appeal is refereed to the Assessment Review
Board (ARB) which is usually consists of one
Civil Engineer, one lawyer and one ward Commissioner
or salaried employee of DCC.
Review Board/Appellate committee issues a notice
(signed by TO) to the Tax payer for submitting
necessary documents & statements justifying
the decrease of valuation within given time.
Tax payer submits necessary documents and statement
justifying the decrease of valuation.
Review board re-vaults the valuation, gives
decision and issues a notice to the Tax Payer
informing the new/Justified rate (if any) which
is signed by TO.
Mutation Rules
"Mutation" here implied as Replacing
of owner's name in the Assessment Register.
The Mutation of name does not confer any title
over the property on the person in whose favour
the Mutation is granted.
Recording of owner's/taxpayers name in the Assessment
Register is necessary in order to assess land/bidding
properly and to dispatch the tax bill to the
right person liable to pay tax. Here Mutation
is treated as amendment or alteration in valuation
list which is mentioned in Section-26 of City
Corporation Taxation Rules-1986.
26. Amendment or alteration of list
(1) The City Corporation may, at a meting, at
any time, direct alteration or amendment of
the assessment list -
26(b) by substituting therein for the name of
the owner of any building or land the name of
nay other person who has succeeded by transfer
or otherwise to the ownership of the building
; or
26(f) by correcting any clerical or arithmetical
error.
Following sections of City Corporation (Taxation)
rules, 1986 are also relevant to the Mutation
30. Power to assess building and lands together
where land is on a building lease.
If,
any building belongs to one owner and the land
on which it stands belongs to another, the City
Corporation may treat such building and land
either as a single building or separately and
assess them to tax in a manner most convenient
and expedient.
31. Notice of transfer of title
(1) Whenever the title to or over any building
and the land on which it stands is transferred,
both the transferor and the transferee shall,
within three months of the registration of the
deed of transfer, or if no instrument be executed,
within three months of the actual transfer,
give notice in writing of such transfer to the
City Corporation.
(2) Every person primarily to the payment of
any tax or rate on any building, who transfers
his title to or over such property without giving
notice of such transfer to the City Corporation
shall, unless the City Corporation, on grounds
of hardship, otherwise directs, continue to
be liable for the payment of the tax or rate
payable in respect of the said property until
he give such notice.
(3) Nothing in this rule shall diminish the
liability of the transferee for the said tax
or rate or to affect the prior claim of the
City Corporation for the recovery of the tax
or rate due thereupon and the City Corporation
may revise the assessment list as against the
transferee with effect from the date on which
they are satisfied that the transfer was made.
32. Persons succeeding to lands or buildings
to give notice to the City Corporation
Every
person succeeding to any building or land by
inheritance shall, within three months from
the date of such succession, give notice in
writing of such succession to the City Corporation
and the provisions of rule 31 (3) shall apply
mutatis mutandis to such a case.
Mutation Procedure
DCC
is not responsible for land Mutations Case.
Only properties already assessed and having
a DCC holding number are entertained for Mutation
in case of change in ownership.
A prescribed application form ('M' form) for
Mutation is available at any Zonal Taxation
Office of DCC and at the DCC head office at
the cost of taka 10/-.
Application
should be properly furnished and should be submitted
to the Taxation Officer of concerned zone along
with the following documents
1. Purchase Deed (Attested Copy)
2. Via Deed (Attested Copy) (if necessary)
3. Porcha (Attested Copy)
4. Duplicate Carbon Receipt (DCR) (Attested
Copy)
5. Land Tax Receipt (Attested Copy)
6. Up-to-date Holding Tax Payment Receipt (Copy)
7. Succession Certificate (Attested Copy) (if
necessary)
After receiving of the Application for Mutation
a one month's Notice is served to all concerned
in order to make sure that they don't have any
objection to this Mutation. If there is any
objection it should be reported to the concerned
T.O. within the stipulated time. In that case
concerned T.O. invites all concerned parties
for a hearing to justify the objection. If the
objection is justified the Mutation Application
case is dismissed at that stage Sometime the
case is refered to the law officer of DCC for
his legal opinion.
If there is no objection from the concerned
parties and Applicant along with attached documents
found valid the Mutation Case is forwarded to
the concerned DCRO for approval. As soon as
DCRO Approves the Mutation Case it is communicated
to the applicant throng a letter by the concerned
T.O.
Assess
ment Example
Valuation/Assessment
of Holding is done by determining the annual
value of building & land as follows:
(a) For wholly let-out buildings
(i)
The annual value shall be taken to be the gross
annual rental minus two month's rent as maintenance
allowance and if the property is mortgaged to
the Government, Bangladesh House Building Finance
Corporation, scheduled bank or any other financial
institution under registered instrument for
securing funds for construction or purchase
of the same, then the annual interest payable
on account of such mortgage-debt shall also
be deducted.
(ii) If the monthly rental of any building appears
to be abnormally high or unusually low, the
assessor, while determining annual value, may
have regard to the rent at which buildings and
lands of similar description and with similar
advantages in the locality may be let-out.
Example:-
Let us consider a two storied building having
2 rooms, 1 kitchen & 1 bath in each floor
of an area 500 sft.
The rent or Reasonable Rent (RR) of each floor
is taken to be Tk. 2,500/- then,
Annual Value
Rent
or Reasonable Rent of ground floor
| =
Tk. 2,500/- | | Rent
or Reasonable Rent (RR) 1st floor | =
Tk. 2,500/- | | | =
Tk. 5000 × 12 | | | =
Tk. 60,000/- | | Minus
(2 month's rent) | =Tk.
10,000/- | | | =
Tk. 50,000/- |
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(b)
For wholly occupied buildings
The annual value shall be deemed to be the probable
annual rent at which the buildings and lands of similar
description and with similar advantages in the locality
may be let out or at 7 percent of the value of the
building on the date of assessment plus ground-rent
for the land comprised in the building, whichever
is less, minus the following:-
(a) Two months rent, or one-sixth of the annual value,
as the case may be, as maintenance allowance
(i) 40 percent of the annual value after deduction
of the amount mentioned in item (i)
(ii) if the property is mortgaged to the Government,
Bangladesh House Building Finance Corporation, scheduled
bank or any other financial institution for securing
funds for its construction or purchase of the same,
then the annual interest payable on such mortgage-debt.
Example:- Let us consider a two storied building having
2 rooms, 1 kitchen & 1 bath in each floor of an
area 500 sft. (Wholly occupied)
Reasonable Rent (RR) of each floor is taken to be
Tk. 2,500/- then,
Annual Value
Reasonable
Rent (RR) of ground floor
| = Tk. 2,500/- | | Reasonable
Rent (RR) 1st floor | =
Tk. 2,500/- | | | =
Tk. 5000 × 12 | | | =
Tk. 60,000/- | Minus
(2 month's RR)
| =
Tk. 10,000/- | | | =
Tk. 50,000/- | | Minus
(40%) | =
Tk. 20,000/- | | | =
Tk. 30,000/- |
(c)
For partly rented and partly occupied buildings
The
annual value of the rented portion shall be calculated
in the manner as specified in clause (a) and that
of the occupied portion as in clause (b).
Example:- Let us consider a two storied building having
2 rooms, 1 kitchen & 1 bath in each floor of an
area 500 sft. of which ground floor is rented at Tk.
2500/- per month and 1st floor is self occupied, then-
Annual Value
Rent
of ground floor =
| Tk. 2,500/- | | Reasonable
Rent (RR) 1st floor = | Tk.
2,500/- | | | =
Tk.5,000/- × 12
| | | =
Tk. 60,000/- | Minus
(2 month's rent)
| =
Tk. 10,000/- | | | =
Tk. 50,000/- | | Minus
(40% of the occupied portion) = | Tk. 10,000/- | | | =
Tk. 40,000/- |
Determination
of Tax
When
the Annual Valuation of a property is done, the amount
of tax payable is determined by following rates:-
Holding
Tax=
| 7%
of the Annual Valuation | | Conservancy= | 2% of the Annual Valuation | | Lighting
Rate= | 3%
of the Annual Valuation | | | | | Total
Annual Tax= | 12%
of the Annual Valuation |
Tax
can be paid quarterly (3 Months) basis which is one
fourth of the total Annual Tax. There are some rebate
(discount) arrangements for early payment of City
Corporation Taxes. For detail of rebate please see
"Payment of Taxes".
Generation of Tax Bill
Regular
Bill: Concerned Zonal Taxation office prepares all
the bills for the whole year and delivers it to the
tax payer (usually at the address of concerned holding)
within the 1st month of the financial year. The Bill
Book has 4 copy of each page. i,e. Corporations Copy,
Bank's Copy, Tax Payer's Copy & Office Copy. Bill
Book is also delivered to the address of the tax payer
other than the holding address only when it is desired
(in writing) by the actual owner.
Any complaint regarding non-receipt of the tax bill
should be reported to the concerned Zonal Tax Office
(See contacts).
Duplicate Bill is also Issued from the concerned Zonal
Tax Office in case of non-receipt of Original Bill.
Duplicate Bill has to be collected physically from
the concerned Zonal Taxation Office.
Supplementary Bill is issued in case of my alteration
or change in valuation. It is also delivered to the
tax payer at his/her address.
Payments of Tax
Bill
book is prepared for the whole financial year &
it is issued/delivered to the tax payer at his/her
holding address or at any other address as desired
by the tax payer. Bill Book is delivered within July
of each fiscal year. There is a receipt part of the
bill book. Bill is issued quarterly basis. But there
is a provision of 5% rebate if quarterly tax is paid
within 1st month of the quarter and 10% rebate for
making payment of tax for the whole year within the
1st quarter, 7.5% rebate for advance payment of quarterly
tax (more than one but less than 4 quarter at a time)
within rebate date of current quarter. Bill book has
4 copy of each page. i,e. Corporation's copy, Bank's
Copy, Tax Payer's Copy & Office Copy.
Tax can be paid through any of the following 2
ways
1. Following Branches of Janata Bank :- ............................
list.
2. Concerned Revenue Supervisor receives taxes physically
in cash at the tax payer's site (Valid receipt is
given upon payment).
Change
of Address
If someone (Tax payer) wants to get the tax Bill and
all other relevant correspondence from DCC at an address
other than the holding address he/she should inform
the matter to the concerned Zonal Taxation office
in writing. Only the original/valid tax payer can
make such a request.
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