Residential properties up to 500 sq ft exempted from property tax
Update on March 11, 2019: The Maharashtra cabinet, on March 8, 2019, approved a proposal to exempt residential properties up to 500 sq ft, within the Mumbai municipal area limits, from property tax. The decision was taken at the cabinet meeting held in Mumbai. The proposal had been put forward by the Shiv Sena, before the pre-poll alliance with the BJP was finalised. Chief minister Devendra Fadnavis had announced that the demand would be accepted.
In another significant decision, the cabinet approved a proposal to give on ownership basis, the cooperative housing societies meant for Panshet flood-affected people in Pune. Food and Civil Supplies minister Girish Bapat, who is also the guardian minister of Pune, said that 103 societies were given land on 99-year lease. These societies will now be on ownership basis. Due to the decision, residents can sell off their houses or go for redevelopment. The cabinet also decided to give tax benefits to cooperative housing societies on government, semi-government and private land, to encourage them to go for self-redevelopment.
July 7, 2017: The Brihanmumbai Municipal Corporation (BMC), has passed a proposal to exempt houses in the city with a carpet area up to 500 sq ft, from property tax. If the government approves the proposal, it will benefit over 14 lakh households in the metropolis. The BMC also passed a proposal for 60 per cent concession in property tax, for houses measuring between 500 sq ft and 700 sq ft.
The proposal, moved by the Shiv Sena in the civic body’s council, was supported by all parties, including the BJP and the main opposition Congress. During the campaign for the BMC election in February 2017, Shiv Sena chief Uddhav Thackeray had promised that property tax will be completely waived off, on tenements measuring up to 500 sq ft (carpet area). He had also said that for homes up to 700 sq ft, there will be a concession in property tax.
If the Sena’s proposal is approved by the civic commissioner and subsequently, by the state government, then, the owners of houses with an area of up to 500 sq ft will be exempted from paying property tax, with effect from 2015 to 2020. There are nearly 14.98 lakh such properties in Mumbai. The BMC gets around Rs 350 crores revenue annually, by levying property tax on the capital value of these houses.
According to an official estimate, the tax relief on homes measuring up to 700 sq ft, is likely to result in an annual loss of around Rs 100 crores. “Of course, the BMC will lose some part of its revenue while providing relief to the citizens, but we are prepared for it. It was one of our poll promises and we are happy and proud to say that we have fulfilled it,” Yashwant Jadhav, the Sena’s group leader, who moved the proposal in the BMC, told PTI.
“The proposal will be sent to the urban development department, to get a final nod and we are confident that it will give the consent,” he said. Jadhav had earlier asked Mumbai Mayor Vishwanath Mahadeshwar to provide relief to the city residents on property tax.