Introduction

What does bifurcation of property mean?

• A property is divided into two or more parts.

• New properties which come into existence are called child properties.

• The property that got bifurcated is known as parent property.

• The owner(s) of the parent and child properties remain the same.

• The relationship of child and parent properties is maintained to track the bifurcation.

• Change in ownership of child properties is achieved through the Mutation (Title Transfer) process.

• A building property can be divided into.

  • Building + Building

  • Building + Vacant Land

• A vacant land property can be divided into vacant lands only.

How is the bifurcation of property accomplished on the ground?

The bifurcation is considered a service and the owner(s) has to apply for it. An application is submitted for a property bifurcation with the required supporting documents. There is no fee associated with the bifurcation of property application.

Key Metrics

Below are state-wise approximate figures of amalgamation applications received and processed in a year.

Proposed Solution

How to achieve this with the DIGIT Platform?

1. A new application type ‘BIFURCATION’ is created.

2. The no. of properties resulting due to bifurcation is restricted to five which is configurable and can be changed according to the need of implementations.

3. Application no. the format is defined and configured.

4. Only one application is created and the record of the same is maintained and the new properties created as a result of bifurcation are linked to that application.

5. The workflow component is integrated.

6. The status of parent and child properties is maintained as ‘In Workflow’ while the application is in flow.

7. On the approval of the application, bifurcation comes into effect and all the properties become active.

8. Newly created properties are given a new property ID.

9. Though there are no instances where the application fee is charged for bifurcation, the applicability of the application fee is to be made configurable.

10. Bifurcation comes into effect from the date of approval of the application.

11. No final document is generated as proof of bifurcation.

12. Applicant(s) is/are intimated through SMS/ email notifications about the status and completion of the application.

Validations

1. The parent property should be an active property.

2. Ownership of all the properties (parent + child) remains the same.

3. The total land area of the parent property (before bifurcation) should be equal to the total land area of all the properties (parent + child).

4. The total built-up area of the parent property (before bifurcation) should be equal to the total built-up area of all the properties (parent + child).

5. All the child properties inherit the ownership from the parent property.

User Persona

Navigation

Employee

Login → Search Property → View Property Details → Select ‘Bifurcate Property’ Action.

Citizen

Login → Bifurcate Property → Search Property → Search Result → Select Property.

Application No. Format

Application no. should follow the given format - PT-<runningsequence>

User Flow

1. Citizen/ Counter Employee - Application is initiated by citizen/ counter employee.

2. Document Verification - The application and documents attached to it are verified by a document verifier.

3. Field Inspection - The field inspector performs the field visit for the physical verification of properties.

4. Approval of application - In the case no application fee is applicable, the application is approved and bifurcation comes into effect with approval.

5. Payment of application fee - In the case the application fee is applicable, bifurcation comes into effect only after the payment of the application fee.

Application Form

Child Property Form

Workflow

Wireframes

Figma Link - https://www.figma.com/file/AXXM9veAvX5IRazkhwbvqF/Digit-Design-System?node-id=38193%3A82388

Screenshots

Use Case Scenarios

UC1: There is property ‘A’ which has to be divided into 2 properties of the same usage and in the name of the same owner(s).

1. One new property ‘B’ record is created keeping the address and owner(s) details the same as property ‘A’.

2. New door no. is provided to property ‘B’.

3. Assessment detail is added to newly created property ‘B’ keeping usage the same as ‘A’.

4. Property ‘A’ is modified to change the assessment details while the change in address and owner’s detail is now allowed.

UC2: There is property ‘A’ which has to be divided into 2 properties of different usage and in the same of the same owner(s).

1. One new property ‘B’ record is created keeping the address and owner(s) details the same as property ‘A’.

2. New door no. is provided to property ‘B’.

3. Assessment detail is added to the newly created property ‘B’.

4. Property ‘A’ is modified to change the assessment details while the change in address and owner’s detail is now allowed.

UC3: There is property ‘A’ which has to be divided into 2 properties and for the second property owner(s) to be changed.

1. Property ‘A’ is modified to change the assessment details while the change in address and owner’s detail is now allowed.

2. One new property ‘B’ record is created keeping the address and owner(s) details the same as property ‘A’.

3. New door no. is provided to property ‘B’.

4. Assessment detail is added to the newly created property ‘B’.

5. Once the bifurcation application is closed, a mutation application seeking change in the owner(s) is applied either for newly created property ‘B’ or existing property ‘A’ based on the need.

UC4: There is property ‘A’ which has to be divided into 2 properties and for both properties' owner(s) to be changed.

1. Property ‘A’ is modified to change the assessment details while a change in address and owner’s detail is now allowed.

2. One new property ‘B’ record is created keeping the address and owner(s) details the same as property ‘A’.

3. New door no. is provided to property ‘B’.

4. Assessment detail is added to the newly created property ‘B’.

5. Once the bifurcation application is closed, mutation applications seeking change in the owner(s) are applied for newly created property ‘B’ and existing property ‘A’.

Introduction

What does amalgamation of properties mean?

Two or more than two adjacent properties of an owner(s) are merged to form a single property. On merging of properties, merged properties are removed from the assessment registers while the retaining property is modified to add the merged property(ies) dimensions. The retaining and merged properties relationship is maintained for future reference. The combination of properties for which amalgamation can be done is given below.

• Building + Building

• Building + Vacant Land

• Vacant Land + Vacant Land

How is the amalgamation of properties accomplished on the ground?

The amalgamation is considered a service and the owner(s) has to apply for it. A single application is created for the amalgamation of properties with details of all the properties and the required documents are produced in support of the application. There is no application/ processing fee associated with the amalgamation of properties.

Key Metrics

Below are state-wise approximate figures of amalgamation applications received and processed in a year.

Proposed Solution

How to achieve this with the DIGIT Platform?

1. A new application type ‘AMALGAMATION’ is created.

2. Application no. format is defined.

3. Only one application is created and the record of the same is maintained. All the properties involved in amalgamation are linked to that application.

4. Workflow components are integrated and the wf status of retaining and merge properties are maintained as ‘In Workflow’ while the application is in flow.

5. Though there are no instances observed where the application fee is charged for amalgamation, the applicability of the application fee is to be made configurable.

6. The uniqueness of the owner (Individual) is identified based on the below-given attributes.

   • Owner’s Name

   • Owner’s Gender

   • Owner’s Guardian Name

   • Relationship with Guardian

7. The uniqueness of the owner (Institutional) is identified based on the below-given attributes.

   • Institute Name

   • Institute Type

   • Authorised Person Name

8. No final document is generated as proof of amalgamation.

9. Applicant(s) is/are intimated through SMS/ email notifications about the status and completion of the application.

10. Any integration impact to be handled.

    • Water and sewerage connection with merging properties to be moved to retaining property or to be brought to closure.

    • Trade licenses associated with merging properties are to be moved to retaining property or to be brought to closure.

11. Modules linked with property tax have to expose the API to check the status of applications in respective modules associated with a property.

Validations

1. All the properties should be active properties, INACTIVE and WORKFLOW properties are not eligible for amalgamation.

2. There should be any application in flow for other services as well linked with a merging property. E.g. Water Connection, Sewerage Connection, and Trade License.

3. The owner (s) of the retaining property should always be a superset of the owner(s) of the merging property. It means there should not be a case where any owner of the merging property(ies) is not the one from the owners of the retaining property.

4. There should not be any due on the properties which are to be merged while there is no such condition for retaining property.

5. Dues related to water and sewerage charges for the connections associated with merging properties are not taken care of here.

6. The total land area of retaining property = Land area of retaining + Total land area of properties to be merged.

7. The total built-up area of retaining property = Built-up area of retaining + Total built-up area of properties to be merged.

8. Properties to be merged are deactivated on completion of the process while retaining property remains active.

9. Amalgamation will be effective from the date of approval of the application.

Integrations Impacts

Water and Sewerage

1. There should not be an application related to water connection linked with a merging property in the workflow.

2. In the case of water and sewerage connections associated with merging property to be moved to retaining property, it has to be achieved in the WnS module itself by modifying the connection.

3. In the case of water and sewerage connections associated with merging property to be closed, it has to be achieved in the WnS module itself by using closure connection activity.

Trade Licenses

1. In the case of trade licenses associated with merging properties to be moved to retaining property, it has to be achieved in the TL module itself on renewal of trade.

2. In the case of trade licenses associated with merging properties to be closed, it has to be achieved in the TL module itself by using the closure of trade features.

Accounting and Finance

Accounting entries are passed for these transactions in terms of demand modifications.

User Persona

Navigation

Employee

Login → Search Property → View Property Details → Select ‘Amalgamation’ Action

Citizen

Login → Amalgamation Menu → Search Property → Search Result → Select Property.

Application No. Format

Application No. should follow the given format. PT-<running sequence>

User Flow

Citizen/ Counter Employee - Application is initiated by citizen/ counter employee.

Document Verification - The application and documents attached to it are verified by a document verifier.

Field Inspection - The field inspector performs the field visit for the physical verification of properties.

Approval of Application - The application is approved by the approver and the changes requested in the application come into effect in case the application fee is not applicable.

Payment of application fee - In the case the application fee is applicable, the changes related to amalgamation come into effect only after the payment of the application fee.

Application Form

Workflow

Wireframes

Please click here to see the wireframes in Figma.

Screenshots are attached below.

Citizen (Mobile First)

Apply for amalgamation

Login into the account (If not already logged in)

Select retaining the property for amalgamation

The user will be displayed all the properties currently linked with the logged-in account and allowed to select one of them as a retaining property.

The retaining property address and ownership details is displayed on apply.

Select a property to merge

The user will be displayed a list of all those properties which are owned by him/ her as a single owner or joint owner and allowed to select a property based on the below conditions.

• The owner(s) of the merging property should be a subset of the owner(s) of the retaining property.

• There should not be any dues on the property.

• The property should be active property, also there should not be any application in flow for an integrated module associated with the property.

• The property should belong to the same locality as the retaining property.

Modify the assessment details of retaining property

• Property Type

• Plot Size

• Number of basements

• Number of floors

Unit details

• Usage

• Sub-usage

• Occupancy

• Built-up Area

• Annual Rental

In case the property type is ‘Flat’, flat details are modified.

In the case property type is vacant land, vacant land details are modified.

Documents attachment and summary of the application

Employee

Apply for amalgamation

Property is searched and property details are viewed.​​​​

Select the action ‘Amalgamate Property’ from the action list.​​​​​​​​​​

Use Case Scenarios

UC 1 - Same Owner’s Residential Properties

There are two properties A and B, both are residential in nature and belong to the same owner “xyz”.

Illustration: Suppose A is the retaining property while B has to be merged with A.

• Property A address remains unchanged.

• Property A ownership details remain unchanged.

So assessment details of property A are modified according to the assessment details of B. Below given are the activities which can be performed to modify the assessment detail of property A.

• The land area of A is increased to include B into A.

• One more UNIT is added to A representing B.

• An additional floor is added to A representing B.

• The existing UNIT area of A is increased.

• The existing UNIT rental value of A is increased.

• The remaining attributes would remain unchanged. Like Usage, Sub Usage, and Occupancy. Though these also can be edited if required.

Property B is linked with the application which is deactivated on completion.

UC 2 - Same Owner’s Mixed Properties

There are two properties A and B, A is residential while B is non-residential and belongs to the same owner “xyz”.Illustration: Suppose A is the retaining property while B has to be merged with A.

• Property A address remains unchanged.

• Property A ownership details remain unchanged.

• So assessment details of property A are modified according to the assessment details of B. Below given are the activities which can be performed to modify the assessment detail of property A.

  • The land area of A is increased to include B into A.

  • Property usage is changed to Mixed.

  • One more UNIT is added to A representing B and UNIT usage and sub-usage is kept according to property B, commercial in this case.

  • An additional floor is added to A representing B.

  • The existing UNIT area of A is increased.

  • The existing UNIT rental value of A is increased.

• Property B is linked with the application which is deactivated on completion.

UC 3 - Solo Owner Of One Property And Joint Of Others

There are two properties A and B, “xyz” is the only owner of property A while he/she is the joint owner of property B.Illustration:

• In case, property B is the retaining property, property A is merged according to usage cases #1 and #2.

• In case, property A is the retaining property, property B is first mutated in the name of the owners of property A using the mutation process.

UC 4 - Properties Of Two Different Owners

There are two properties A and B, the owner of property A is “xyz” while the owner of property B is “def”.Illustration:

• In case A is going to be retaining property, property B is to be first mutated in the name of “xyz” using the mutation process.

• In case B is going to be retaining property, property A to be first mutated in the name of “def” using the mutation process.

There are two properties A and B, the owner of property A is “xyz” which is institutional ownership while the owner of property B is “def” which is individual ownership.

• It is a similar case to #4, and the property is to be mutated first to initiate amalgamation.

Objective

The objective of this document is to compare the capital value method of property tax assessment with other available methods i.e. annual rental value and unit area value method and evolve the approach to incorporate the capital value system in DIGIT with bare minimum changes.

Source of Information

Uttarakhand - Draft for capital value system, IGRS system study.

Andhra Pradesh - Draft for capital value system, IGRS system study.

Abbreviation

Process Overview

The process of assessment of property tax will remain the same as the UAV method for assessment of property tax.

Methods of property tax assessment

There are broadly 3 methods which are being used for property tax assessment.

1. Annual Rental Value - In this method tax is calculated on the annual rental value.

2. Unit Area Value - In this method tax is calculated on annual value.

3. Capital Value - In this method tax is calculated on capital value.

DIGIT already supports the first 2 methods of property tax assessment while the capital value method is relatively new and needs to be incorporated into DIGIT. DIGIT to provide the configuration to define the method of assessment of property tax upfront.

Masters Data

State Level Masters

DIGIT already supports masters which are required to calculate the annual rental/ annual value. Below given table illustrate which of those are relevant for the capital value method.

ULB Specific Masters

Boundaries

ULBs are divided into definite smaller units of boundaries to define the unit/ rental rates. In the same way, boundaries are defined by the registration and stamp duty department to define the circle rates. DIGIT has to provide the option to define the boundaries from the registration and stamp duty department.

District → SRO → Block or Segment

Cross Boundaries Mapping

1. ULB - SRO mapping - It is mandatory to have and list the SROs on the screen linked with a ULB.

2. Locality - Segment/ Block mapping - It is nice to have, but not mandatory. Having this mapping will make the segment/ block list refined to select by the applicant.

Fee, Rates, Penalty and Rebates

Property Attributes

Below given table lists all the fields/attributes which are captured to record the property detail and use for various purposes like assessing the property tax using the current capital value of the property, generating the demand bills, locating the property, and sending the notification to owners of property etc.

Location Details

ARV and UAV-specific boundaries are not applicable for the calculation of capital value. CVS has a completely different set of boundaries used by the registration and stamp duty department to define the circle rates and the same is given below. SRO and Block are to be added to the location detail of the property to enable CVM.

Construction Details

In the construction detail, occupancy of the property is irrelevant for the calculation of the property’s capital value while other masters like property type, usage, nature of business, and the construction type are used as it is. Though there would be changes in that the values are a little bit different and defined according to the registration and stamp duty department.

Ownership Details

No change is required in existing ownership details.

Required Documents

Documents which are required to avail of the service are already configurable.

Property

Property Registration From (UI)

UOM, Rules and Calculations

Unit of Measurement

This needs to be configurable, configured with the start of using the product and can not be changed once the product is live and in use.

Calculation of Depreciation

It is @1% for every completed year after 10 years up to a maximum of 70%. Up to 10 years of building age depreciation are not provided. For the capital value of land, no depreciation is applicable.

Calculation of Capital Value

To calculate the capital value of a building which is not a flat in the apartment, the capital value of the constructed area and land on which the building is constructed are calculated separately and then add up to arrive at the property's capital value. The capital value is calculated floor-wise.

• Capital Value (Vacant Land) = Area of vacant land * circle rate defined for vacant land;

• Capital Value (Individual Building) = Land Capital Value + Builtup area of building * circle rate defined for the building;

The capital value for the apartment is calculated on the super built-up area of the flat. In this case, land capital value is not added to flat capital value.

• Capital Value (Flat In Apartment) = Super built-up area of flat * circle rate defined for the building;

• Calculation of Property Tax - Property Tax = Capital Value * Tax Rates;

Integration Approach

No Integration

In this approach capital value calculation logic, circle rates and associated masters are maintained in DIGIT itself and any change/ revision in respect of calculation logic, and rates are done at IGRS system, which is manually done in DIGIT.

1. Masters are maintained in DIGIT.

2. Circle rates are maintained in DIGIT and get updated when required.

3. Capital value calculation logic is maintained in DIGIT along with depreciation calculation.

4. Any change in rate and calculation logic needs a change in DIGIT in terms of configuration/ customization.

Capital Rate API Integration

In this approach circle rates are maintained in the IGRS system. While capital value calculation logic and the masters are maintained DIGIT. The API is called to fetch the circle rates from the IGRS system.

1. Masters are maintained in DIGIT in such a way that values can easily be associated with the master values maintained at the IGRS system.

2. Circle rates are maintained only at the IGRS system and fetched by DIGIT on the fly. It avoids the need to manually maintain the rates in DIGIT.

3. Capital value calculation logic is maintained in DIGIT along with depreciation calculation, hence a change in capital value calculation needs a change in DIGIT.

Capital Value API Integration

In this approach capital value calculation logic rates are maintained in the IGRS system. While only associated masters are maintained in DIGIT. API is called to fetch the capital value from the IGRS system by passing appropriate values.

1. Masters are maintained in DIGIT in such a way that values can easily be associated with the master values maintained at the IGRS system.

2. Circle rates are maintained only at the IGRS system.

3. Capital value calculation logic is also maintained in the IGRS system only.

4. DIGIT performs the API call to fetch the capital value from the IGRS system by passing all required data to IGRS.

5. This approach avoids the need of maintaining rates and calculation logic in DIGIT. Hence any change in rate and capital value calculation will require a change in DIGIT.

Use cases - Capital Value Calculation

Suppose circle rates are defined as given below.

** Rates are defined per Sq. Mt.

Vacant Land

Suppose there is an open plot with an area of 167 sq. mt. Then the capital value calculated will be.

Capital Value = 167 * 16000 = 26,72,000;

Individual Building (Residential)

The age of the building is less than 10 Years.

• Plot Area = 1000 sq. mt.

• Built-up Area = 800 sq. mt.

• Usage = Pakka

The calculation of capital value will be as illustrated below.

• Capital value for land = 1000 * 16000 = 1,60,00,000;

• Capital value for construction = 800 * 12000 = 96,00,000;

• Capital Value of Property = 1,60,00,000 + 96,00,000 = 25,600,000;

The age of the building is less than 21 Years.

• Plot Area = 1000 sq. mt.

• Built-up Area = 800 sq. mt.

• Usage = Pakka

The calculation of capital value will be as illustrated below.

• Capital value for land = 1000 * 16000 = 1,60,00,000;

• Capital value for construction = 800 * 12000 = 96,00,000;

• Depreciated capital value of construction = 96,00,000 - 96,00,000*11/100 = 85,44,000;

• Capital Value of Property = 1,60,00,000 + 85,44,400 = 24,544,000;

Individual Building (Non-residential)

• Plot Area = 1000 sq. mt.

• Built-up Area = 800 sq. mt.

• Usage = Shop/ Restaurant/ Office

The calculation of capital value will be as illustrated below.

• Capital value for land = 1000 * 16000 = 1,60,00,000;

• Capital value for construction = 800 * 64000 = 5,12,00,000;

• Capital Value of Property = 1,60,00,000 + 5,12,00,000 = 52,80,03,200;

Flat In an Apartment

• Super built-up area = 139.355 sq. Mt.

• Capital value = 139.355 * 30000 = 41,80,650;

System Studies

IGRS UTTARAKHAND

Screenshots

Masters Data Relationship

Data Elements To Calculate CV

Boundaries (IGRS Boundary Hierarchy)

1. District

2. SRO

3. Location Area

4. Village/ Mauza

Property Level

1. Property Type

2. Property Sub-type

3. Usage - AP classifies open plots also into residential and non-residential categories.

Floor Level

1. Floor Type

2. Sub-usage - Applicable only to commercial properties.

3. Construction Type - It is termed as construction type as well.

4. Construction Year - It is calculated from the date of construction.

5. Area - In some other places it is the built-up area/ super built-up area considered for calculation.

There are 2 masters from IGRS values which covers Property Type, Usage, Sub-usage, and Construction Type. It also consists of the distance of the property from the road which is currently not available in the DIGIT. Hence the option to establish the mapping between IGRS and DIGIT masters is to be provided.

1. Area Major Class

2. Area Class

IGRS Andhra Pradesh

Screenshots

Master Data Relationship

Data Elements To Calculate CV

Boundaries (IGRS Boundary Hierarchy)

1. District

2. SRO

3. Village

4. Habitation/Locality

5. Ward

6. Block

7. Door No.

Property Level

1. Property Type

2. Property Sub-type

3. Usage - AP classifies open plots also into residential and non-residential categories.

Floor Level

1. Floor No.

2. Structure Type - It is termed a construction type as well.

3. Plinth Area - In some other places it is the built-up area/ super built-up area considered for calculation.

4. Stage of construction - ULBs assess the completed properties only. Under-construction properties are considered for property tax assessment.

5. Age of building - It is calculated from the date of construction.

Open Questions

• Is it possible to categorize the SROs into URBAN and RURAL? As we are interested in urban areas only.

UKD: SROs follow different hierarchies - decided based on tehsil boundary. cannot be categorised as purely urban or rural, can be mixed

AP: SROs have their own jurisdiction which is independent of the ULB. Typically SRO has Urban and Rural areas under its jurisdiction. Some ULBs have more than one SRO. In AP, NIC is the solution provider for IGRS. NIC has shared the Capital Rates data with CDMA. ULBs are asked to share the SRO Codes which fall under their jurisdiction. So, relevant data is pushed to the respective masters of the ULB. Provision was enabled to disable those Areas which doesn't fall under the ULB.

• To calculate the capital value, is it necessary to have the deed type and deed sub-type or these are needed only to calculate stamp duty?

UKD: yes, these details are required.

AP: To calculate Capital Value, Deed Type and Sub-type is not required. Provision is enabled to capture Deep Type at the time of applying for New Assessment and Title Transfer.

• What are the cases where the distance of the property from the road is needed?

UKD: in all cases, the circle rate is calculated based on this

AP: This is not a criterion in AP - might be specific to UKD.

• Is it necessary to capture the property detail floor-wise to calculate the capital value? If not, then what is the role of the floor in capital value calculation?

UKD: since earlier, they have floor-based calculation, recommended to keep floor details even though it is not being used in CV calculation. also for subsequently constructed floors, the cost of construction will be different

AP: Yes – floor details need to be captured as:

1. depreciation is given based on the year of construction. There might be cases where all floors are not constructed at the same time.

2. usage [Residence/ Non-Residence] might be different for each floor.

• In capital value calculation, what is the role of the land area on which a building is constructed?

UKD: land area does not impact CV

AP: Capital Value is calculated in 2 different ways for buildings:

1. For Apartments, Floorwise Composite Rate is defined for the specific Door No. is considered. In this case, Land Value is not considered.

2. For Non-Apartment, Structure Value based on the type of construction is considered for the calculation of Structure Capital Value [SCV]. The piece of Land that is used to construct the Structure is used to calculate Land Capital Value [LCV]. SCV + LCV is the total Capital Value of the Property.

• Are the capital value of land and the building both calculated and then summed up to arrive at the capital value of the built-up structure?

UKD: yes land and building CV are calculated separately and then added.

AP: Yes – Land Value and Structure Value are calculated separately and summed up for Non-Apartments.

• What is the Village/ Mauza and how is it different from the Area of land?

UKD: this is based on tehsil revenue records/maps. not used for the calculation of CV but important in MIS

AP: Not familiar with this terminology – might be specific to UKD.

• What is the role of the construction year in capital value calculation?

UKD: this is considered in calculating depreciation

AP: Construction Date is required to calculate Depreciation.

• What type of rebate is provided, is it applicable to the calculation of capital value or stamp duty or both?

UKD: not decided yet but needs to be kept configurable. early payment + one configurable (based on ULB) are recommended heads.

AP: There is no rebate given at the time of calculation of Capital Value.

• What is the role of the age of the building in capital value calculation?

UKD: based on the year of construction. recommended keeping the year of construction rather than this

AP: Age is dependent on the Date of Construction of the floor which is required for the calculation of Depreciation.

• It looks like Distance from road values is not common across the ULBs. Are the SROs following different values? Please see the table below for more details.

UKD: this will be decided by the Revenue Dept / SRO. ULBs will not have a say also, this needs to be maintained as part of the master data setup.

AP: This might be specific to UKD.

IGRS - Boundaries (Uttarakhand)

Districts

Sub-registrar Office (SRO)

Blocks