Property tax is a crucial part of India’s tax system that provides 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 civic amenities. Similarly, in Mumbai, the Brihanmumbai Municipal Corporation (BMC) or Municipal Corporation of Greater Mumbai (MCGM) is responsible for collecting property tax from the Mumbai Metropolitan Region (MMR).
Here is a guide on how to calculate property taxes in Mumbai, rebates and concessions and how they are paid online, due dates etc.
What is Mumbai Property Tax?
Brihanmumbai Municipal Corporation (BMC) or Municipal Corporation of Greater Mumbai (MCGM) is the governing body of Mumbai, the capital of Maharashtra. It is also known as the richest civic body in the country.
The BMC collects 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 Mumbai residents owning real estate, apartments, shops, offices, buildings, land and leased properties are subject to MCGM property tax.
How is Mumbai property tax calculated?
Calculation of Mumbai property tax is based on several parameters such as location of the property, type of property: residential or commercial, type and age of construction, occupancy status of the property, the carpeted surface and, above all, the floor space index (FSI).
After considering all these factors, the BMC came up with a formula to calculate the tax liability for Mumbai residents, where the property tax is a certain percentage of the capital value of the property for different categories like as residences, businesses, warehouses, retail stores and so on.
Also, per BMC rules, the property tax once set cannot be changed for the next five years. The same is true for self-occupied buildings as well as for rented buildings.
Mumbai Property Tax Formula
Mumbai Property Tax = Tax Rate * Capital Value
Where the capital value depends indirectly on the market value rate of the property which is based on the loan calculator (RR) which is used to calculate stamp duty by the revenue department. The RR value is set by the state government and is a compilation of prices of the fair value of properties. It will also depend on the neighborhood or area your property is in.
Here’s how it’s calculated:
Capital Value = Property Market Value (RR Value) * User Class * Building Type * Building Age * Floor Factor * Carpet Area.
Mumbai Property Tax Calculation
It is very easy to calculate the property tax, which can also be calculated by logging into the MCGM Citizen Portal website.
- Visit the MCGM Citizen Portal website and access the tax calculator.
- Enter property-related offers such as neighborhood, area, locality, square footage, use, occupancy type, carpeted area, FSI, year built, floor type, among others.
- Click on “Calculate”.
- The amount of property tax to be paid will be displayed on the screen.
How to Pay Mumbai Property Tax Online or Offline?
One can pay property tax online and offline in Mumbai. However, let us understand how to pay MCGM property tax online.
Mumbai Property Tax Online Payment
Below is the step by step guide for online property tax payment in Mumbai:
Mumbai Property Tax Online Payment via BMC or MCGM Citizens Login Portal
- Visit the official MCGM website.
- Click on the property tax tab (new).
- Enter the property’s account number to log in further and the captcha code.
- You will arrive on a page presenting the annual breakdown of pending contributions.
- Check the details carefully and enter the amount you are obligated to pay.
- Click online payment using payment gateway or via NEFT, net banking, credit and debit cards.
- You can download the property tax receipt after making the payment.
Mumbai Property Tax Online Payment via BMC or MCGM Online Portal
- Visit the official site of the BMC/MCGM online portal.
- Click on the “pay the property tax” tab under the heading “Services for citizens”.
- You will be redirected to the official MCGM website, where you can view all of your unpaid and paid property tax bills.
Mumbai Property Tax Offline Payment
However, if you do not wish to pay the property tax via the online mode, you can always make the payment manually. You must pay taxes at the nearest Deputy Revenue Office or BMC Help Centers or Citizen Facilitation Center, which are available at any Ward or Zone Office.
How to get Mumbai property tax bill by email?
You can also receive property tax bills via email once they complete the Know Your Customer (KYC) form online. Here are the steps:
- Visit the MCGM Citizen Portal and submit your Property Account Number.
- Fill in the captcha details and press the login button.
- Upload the required document with certified copy.
- To receive email alerts about your property tax, enter your email address and contact information.
- You will receive an email notification once your application has been approved.
Property tax relief measures in Mumbai
- 100% exemption from payment of property tax for residential apartments measuring up to 500 square feet as carpeted area, located within the boundaries of the municipal area of Mumbai with immediate effect.
- Properties used for public purposes related to worship or any charity.
- Residential units with a carpet area of 500-700 square feet will receive a 60% discount.
- Benefit from a 2% tax reduction if you pay the half-yearly amount before the due date of June 30. Or get a 4% tax reduction if you pay the second installment before June 30. This relief only applies to taxpayers who have no outstanding assessments.
Note: Mumbai Property Tax must be paid no later than June 30 each year, otherwise there is a penalty of 2% per month on overdue payments for each subsequent month.
Like any other property tax, Mumbai property tax is also a recurring charge that every property owner in the MMR region is obligated to pay. It can be easily calculated and paid through online and offline channels or through the BMC mobile app. Mumbai taxpayers have to choose any of these modes as per their convenience and also avail the discount offered by the Maharashtra government.
It is important to pay your property tax on time and live a peaceful life with improved amenities in Mumbai.
Frequently Asked Questions (FAQs)
Can I check my property tax bill in Mumbai online?
Yes, you can view your Mumbai property tax bill by logging into the MCGM Citizen Portal website. Login to the account by filling in your property account number and captcha code.
What if I don’t have my real estate account number?
How many times do I have to pay property tax if I have land in Mumbai?
When is the deadline for filing property tax in Mumbai?
Can I receive my Mumbai property tax bill on my email address?