What is the method of computation of property tax under the proposed Capital value System (CVS) based Self Assessment Scheme?
First, the total capital value is computed based on the cost of land and the cost of construction minus depreciation. The rate of tax for residential properties is 0.3% to 0.6% of the total capital value. For vacant land it is 0.01% to 0.1% of the capital value, depending on the size. For commercial properties, the rate of tax may be fixed not less than 0.5% and not more than 1.5% of the total capital value.
