The Calcutta Municipal Corporation has decided to introduce a new tax code for properties. Till now the property tax was calculated on the basis of a building’s notional rent.

Under the new scheme, called unit area assessment, the tax will be calculated based on the area. The 187sq km of the city area has been divided into 262 blocks which come under seven tax zones — A to G.

The following map shows the tax rates in different zones:

The annual tax for residential buildings will be the highest (Rs 4-5 per square foot) in Zone A, which includes the central business district and Park Street, and the lowest (Rs 1.4 per square foot) in Zone G comprising Metiabruz, some wards of Behala, the eastern fringes of the city and the areas dominated by hutments.

As an example, once the unit area assessment is enforced, the owner of a 1,000sq ft residential unit in Park Street will have to pay Rs 5,000 as annual property tax.