Commercial Units Property Tax Calculation Formula: -

I).         In case of self occupied units, the commercial units be assessed as per section 64(a) of the Cantonments Act, 1924.

            ARV = {(Cost of Land * Plot Area) + ( Cost of Construction * Covered Area)} / 20

             Payable Annual House Tax = 15 % of ARV

II).        The commercial units, which are on rent and actual rent agreements are available, should be assessed on actual rent as admissible as per section 64(b).

             ARV = Actual Monthly Rent * 12

             Payable Annual House Tax = 15 % of ARV

III)    The commercial units, which are actually on rent but either the rent agreements are not procured or in case of undervalued rent agreements, should be assessed as per following formula / slab i.e. on fair letting value basis as admissible as per section 64(b).

             Payable Annual House Tax = 30 % of ARV 

             Payable Annual House Tax = 15 % of ARV Self