Unit Area System or UAS: The Unit Area Value is based on the expected returns from the property depending on the location and usage of the property. Since the unit of calculation is based on per square foot per month (UNIT) and for a particular location, street, (AREA) and multiplied by a rate (VALUE).
The Unit Area Method is a widely used approach to calculate property taxes based on the size and characteristics of a property. Under this method, the property tax is calculated by multiplying the area of the property by a predetermined rate per unit area, which is based on factors such as the location, amenities, and property value of the area.
The first step in applying the Unit Area Method is to divide the locality into different categories based on land use, property type, and other relevant factors. Then, the local government assesses the value of each property in each category and determines the appropriate rate per unit area for that category. This rate is usually revised periodically to reflect changes in the market value of properties.
Once the rate per unit area is established, the property tax is calculated by multiplying the total area of the property by the rate. The resulting amount is then adjusted based on any applicable deductions or exemptions, such as discounts for early payment or exemptions for certain types of properties.
The Unit Area System has worked very well in cities like Delhi, Ahmedabad, Patna, Bangalore, Chennai, and Hyderabad
The Municipal Corporation of Delhi has developed an online calculator to evaluate property tax on the basis of the type of location, type of construction and amenities available around. It also factors in the annual value of the property which is derived through following formula-
Annual Value = Covered Area x Unit Area Value x Age Factor x Use Factor x Structure Factor x Occupancy Factor
A. Structure Factor (SF) Structure type Pucca Semi Pucca Kuchcha
Factor (SF) 1.0 1.0 0.5
B. Age factor (AF) – For rebate on age of buildings
Year of completion Prior to 1960 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 onwards
Factor (AF) 0.5 0.6 0.7 0.8 0.9 1.0
C. Occupancy factor (OF) – For tenanted properties
Category A B C D E F G H
Factor (OF) 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
D. Use factor (UF)For Non-residential uses:
Use I II III IV V
Factor (UF) 1 2 3 4 10
UNIT OF ASSESSMENT
1. 1. Every building and every vacant land shall be assessed as a single unit. However where portions of any building or vacant land are separately owned so as to be entirely independent and capable of separate enjoyment, notwithstanding the fact that access to such separate portions is made through a common passage or a common stair case, as the case may be, such separately owned portions may be assessed separately.
2. 2. All buildings, to the extent they are contiguous or are within the same connectedness or are on the same foundation and are owned by the same owner or co-owners as an undivided property, shall be treated as one unit for the purpose of assessment. However if any such building is sub-divided into separate shares which are not entirely independent and capable of separate enjoyment, the Commissioner may, on application from the owners or the co-owners, apportion on the payment of a fee.
The Unit Area Method is considered to be a more equitable and transparent approach to property tax calculation, as it takes into account the size and value of a property and applies the same rate per unit area to all properties within a given category. However, its implementation can be complex and may require regular updates and adjustments to ensure accuracy and fairness.
हिंदी Hindi
सम्पत्ति कर गणना में इकाई क्षेत्र विधि एक विधि है जिसका उपयोग सम्पत्ति कर की गणना करने के लिए किया जाता है। इस विधि के अनुसार, एक निर्धारित क्षेत्र के आधार पर सम्पत्ति कर गणना की जाती है। इस निर्धारित क्षेत्र को एक इकाई के रूप में लेना पड़ता है जिसका नाम “इकाई क्षेत्र” होता है। यह विधि सम्पत्ति कर की गणना करने के लिए एक स्थायी विधि है जो अन्य विधियों से अधिक संवेदनशील और स्पष्ट है।
इस विधि के अनुसार, संपत्ति कर का भुगतान करने वाले व्यक्ति या संस्था को निर्धारित इकाई क्षेत्र के लिए गणना करनी होती है और उस इकाई क्षेत्र के आधार पर संपत्ति कर लगानी होती है। इस विधि का उपयोग संपत्ति कर की गणना में विभिन्न प्रकार की संपत्तियों के लिए किया जाता है, जैसे निजी आवास, वाणिज्यिक संपत्ति आदि
सम्पत्ति कर गणना में इकाई क्षेत्र विधि (यूनिट एरिया सिस्टम) ने दिल्ली, अहमदाबाद, पटना, बैंगलोर, चेन्नई और हैदराबाद जैसे शहरों में बहुत अच्छा काम किया है
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