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Property tax is a crucial element of the Indian taxation system that makes for a substantial source of revenue for municipal authorities in the country. In India, the municipal authority collects and manages the property tax, which helps them maintain the civic amenities. Similarly, in Mumbai, the Brihanmumbai Municipal Corporation (BMC) or Municipal Corporation of Greater Mumbai (MCGM) is responsible for collecting property tax of the Mumbai Metropolitan Region (MMR).
Here is a guide on Mumbai property taxes are calculated, rebates and concessions and how it is paid online, due dates and so on.
The Brihanmumbai Municipal Corporation (BMC) or the Municipal Corporation of Greater Mumbai (MCGM), is the governing body of Mumbai, the capital city of Maharashtra. It is also known as the richest civic body in the country.
The BMC collects the property tax from the residents of Mumbai, based on the capital value system where this value is based on the market value of the property. All the residents of Mumbai owning whether real estate, apartment, shop, office, building, land, and rented properties are subject to pay MCGM property tax.
The Mumbai property tax calculation is based on multiple parameters such as location of the property, property type: residential or commercial, construction type and age, property occupation status, carpet area, and most importantly the floor space index (FSI).
After taking into consideration all these factors, the BMC has come out with a formula to calculate the tax liability for the residents of Mumbai, where the property tax is a certain percentage of the capital value of the property for different categories such as residential, commercial, warehouses, retail shops and so on.
Also, as per the BMC rules, property tax once fixed cannot be changed for the next five years. It is same for self-occupied properties and as well as for tenanted properties.
Mumbai Property tax = Tax rate * Capital Value
Where the capital value indirectly depends on the rate of market value of the property which is based on the ready reckoner (RR) that is used to calculate stamp duty by the revenue department. The RR value is set by the state government and is a compilation of the fair value prices for properties. It will also depend on the ward or zone in which your property falls.
Here’s how it is calculated:
Capital Value= Market Value of the property (RR Value) * User Category*Type of Building *Age of the Building*Floor Factor*Carpet Area.
It is very easy to calculate the property tax, which can be also computed through logging the MCGM citizen portal website.
One can pay property tax both online and offline in Mumbai. However, let’s understand how to pay MCGM property tax online.
Below is the step-by-step guide for the payment of property tax in Mumbai online:
Mumbai Property Tax online payment via BMC or MCGM citizen login portal
Mumbai Property Tax online payment via BMC or MCGM online portal
However, if you want to pay the property tax not via online mode, you can always make the payment manually. You are required to pay the taxes at the nearest assistant revenue office or the BMC help centers or citizen facilitation center, which are available at all the ward or zonal based offices.
You are also eligible to get the property tax bills through email once they fill the Know Your Customer (KYC) form online. Following are the steps:
Note: Mumbai property tax has to be mandatorily paid off by June 30 every year, otherwise there is a penalty of 2% per month on outstanding payments for every succeeding month.
Like any other property tax, Mumbai property tax is also a recurring charge that every property owner of MMR region is obliged to pay. It can be easily computed and can be paid off via online and offline channels or through the BMC mobile app. The taxpayers of Mumbai must choose any of this mode as per their suitability and also enjoy the rebate offered by the Government of Maharashtra.
It is important to pay your property tax on time and live a peaceful life with enhanced amenities in Mumbai.
Yes, you can see your Mumbai property tax bill by logging to the MCGM citizen portal website. Log in to the account by filling your property account number and captcha code.
If you do not know your property account number in Mumbai, then log in to the MCGM portal, go to ‘search’ instead of login, and details such as ward, name, and address of building to search.
As per the BMC rules, property tax has to be paid annually.
You are required to pay property tax in Mumbai every year by the end of 30th June.
Yes, after filling the KYC forms and registering your email address with the BMC, you will start receiving property tax bills on your registered email id.
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