• Shrutika Sharma
• Dr. Abir Bandyopadhyay

Rapid urbanisation and growth in India with increasing population in almost all the cities in India that act as regional hubs or state capitals with puts a lot of pressure in the urban infrastructure. Most of the tier 1 and tier 2 cities faces are developing at an extremely enormous rate. The development mostly is related to infrastructural improvements, revitalisations, redevelopment of core areas, development of new roads, road widening etc. all these developments are directly executed by the urban local bodies like municipal corporations, municipalities etc. The 74th Constitutional Amendment Act (CAA) 1992 provides the framework for strengthening the finances of Urban Local Bodies (ULBs) by assigning them constitutional status and creating specific mechanisms for financial management and attain fiscal autonomy. The implementation, however, is largely dependent on state legislation, which often results in ULBs still being heavily dependent on state and central government transfers. India’s municipal revenue is only 1% of GDP, far below to the global benchmark of 3–5%, indicating the need for stronger municipal fiscal systems and improved revenue mobilisation. There are various direct and indirect taxes that are levied by ULBs, Property tax is the most important own-source revenue. As per studies most of the states follow an out-dated method of Annual rental value (ARV) to calculate property tax which does not integrate the value-added gains of infrastructural development to the property tax. To integrate value added gains to the property tax calculation system, Value Capture Model provides an equitable and modern solution. The study aims to provide an insight on how the integration of Land Value Capture (LVC) tool into property tax calculation system can help ULBS to enhance the finances, increases efficiency and progress towards sustainable fiscal autonomy and governance.

Land Value Capture, Property Tax, Urban Local Bodies, Valuation Systems, Fiscal Autonomy, Spatial Indicators, Incremental Value Assessment

"Integrating Land Value Capture into Property Tax Systems in India: A Review of Conceptual Frameworks and Practical Outcomes ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 1, page no.b578-b585, January-2026, Available :http://www.jetir.org/papers/JETIR2601186.pdf

"Integrating Land Value Capture into Property Tax Systems in India: A Review of Conceptual Frameworks and Practical Outcomes ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 1, page no. ppb578-b585, January-2026, Available at : http://www.jetir.org/papers/JETIR2601186.pdf