Respected and responsible citizens of Varanasi:- please pay your tax dues in time.

Method of calculation
1. All the houses in the limit of Varanasi Municipal Corporation (VMC) have been divided in
two categories. 1- Residential, 2- Non residential
2. You can calculate the general tax (House tax) of your residence or residential portion of your
house yourself (self assessment system). The method is very simple.
3. For the purpose of Tax assessment you are required calculate Annual Value of your building,
the method for which is given bellow.
4. Calculate all the covered area of your house i.e. covered area on all the floors of your house.
5. 80% of this covered area will be carpet area of your house for the purpose of Tax
calculation.
6. Multiply this carpet area by carpet area rate applied to your house and now you get monthly
value of your house. This carpet area rate is fixed by Nagar Nigam and rates are given in
the caption Rate of Tax .
7. Multiply this monthly value by 12 to get annual value (AV). This is the interim AV and the
final AV for the purpose if Tax calculation is reached by deducting rebate.
8. Rebate- All the self owned houses will get rebate. If your house is newly constructed or up
to 10 years old deduct 25% from interim AV, If the house is more then 10 years old but less
then 20 years old deduct 32.5% from interim AV and if your house is more then 20 years old
deduct 40% from this interim AV to get final AV for the purpose of Tax calculation.
9. If the house is not self owned but on rent then final AV will be 25% more then interim AV if
the house is up to 10 years old, will be 12.5% more then the interim AV if the house is more
then 10 years old and less then 20 years old and will be equal to interim AV if the house is
more than 20 years
10.Penalty- If some one conceals the carpet area of his house or any other fact then Municipal
commissioner can impose a penalty of four times more than the difference between actual
tax and tax paid by owner/occupant.
11.Interest- 12% simple annual interest will payable to VMC after 31 , March every years on all
the tax arrears.

Example- Suppose a person owns a house which has following descriptions-

1. He purchases a plot of 2000 squire feet
2. He constructs a house on 1200 squire feet and rest area is open (the open area is non
taxable).
3. House has three stories. The area on 1st floor is 1200 square feet, IInd floor is 600 square
feet and IIIrd floor is 400 square feet. So the total covered area is 2200 square feet.
4. The house is self owned and is 15 years old and carpet area rate is 0.60 rupees per square
feet.
Calculation-
a. Total covered area = covered area on the floors= 1200+600+400=2200 Sq.ft
b. Carpet area = 80% of the covered area=2200*80/100=1760 Sq.ft
c. interim AV = carpet area*rate*12=1760*0.60*12=12672
d. As the house is 15 years old and self owned so rebate is 32.5% of the interim AV
e. final AV for tax = interim AV - Rebate = 12672-12672*32.5/100=8553.60
f. Rate of tax is 15% of final AV so tax =8553.6*15/100=1283.04 say Rs.1283.00

How to Pay your general Tax (House Tax)

Varanasi Nagar has been divided into five zones and in all the five zones computerized tax
collection centers (CTCC) are functional. One can deposit the tax of any area at any of the CTCC's
thus established. The citizen who deposits the tax at CTCC's gets a computerized receipt and
posting of the amount deposited is done automatically. One can pay the tax online also and sitting
comfortable in one's house. The bill is already on the website of VMC (www.nnvns.org).
If you have not received your bill kindly call the zonal officers or send an email
(nagarnigamvns@rediffmail.com) to Nagar Nigam with your name, house no. and contact no and
you will be informed accordingly.
Benefit of the system (Unit area system)
The system is totally objective and there is no room for any kind of discretion or bargaining.
The tax calculation will be same whether it is calculated by VMC or house owner/occupier or any
other person.