Property tax in Mumbai: Complete guide about BMC and MCGM portal


Property tax is a recurring charge that home owners have to pay every year. However, the tax amount varies from one location to another. This is a guide to paying property tax in Mumbai

The owners of residential properties in Mumbai are liable to pay property tax to the Brihanmumbai Municipal Corporation (BMC) every year. With effect from January 1, 2019, property tax on residential units of up to 500 sq ft, located within the Mumbai municipal area limits, have been waived off completely. Residential units with carpet area between 501 sq ft and 700 sq ft, will get 60% reduction in the tax rate. For paying property tax online in Mumbai, you can use BMC mobile app, BMC website or MCGM website. Here’s how guide to pay property tax in Mumbai region online:

 

MCGM property tax guide

 

 

How to view property tax bill online in Mumbai?

To view your outstanding dues and property tax bills online in Mumbai, follow the steps given below:

Step 1: Visit the Citizen Portal Services and enter your property/account number.

Step 2: Enter the captcha. You will be redirected to your account, where you will be able to view all your outstanding and paid property tax bills.

 

How to calculate BMC property tax online

The BMC uses the Capital Value System (CVS) to calculate property tax. This CVS is based on the market value of the property.

Step 1: Visit MCGM Portal Tax Calculator

 

BMC Property Tax Mumbai

 

Step 2: Fill the required details such as ward number, floor, nature and type of building, carpet area, zone, user category, year of construction, FSI factor, tax code, sub zone, user sub-category and other details.

Step 3: Click ‘Calculate’ and get the detailed property tax amount.

 

MCGM property tax formula

Capital value is calculated as follows:

Market value of the property x Total carpet area x Weight for construction type x Weight for age of the building

The market value can be ascertained using the Ready Reckoner (RR). The RR is set by the state government and is a compilation of the fair value prices for properties. You will need to check the ward/zone in which your property falls.

Weights for ‘construction type’, in units:

  • Bungalows and RCC construction – 1 unit.
  • Other than RCC (semi-permanent /chawls) – 0.60 units.
  • Under-construction or vacant land – 0.50 units.

Weights for ‘age of building’, in units:

  • Properties constructed before 1945 – 0.80 units.
  • Properties constructed between 1945 and 1985 – 0.90 units.
  • Properties constructed after 1985 – 1 unit.

See also: Property Tax Guide: Importance, Calculation and Online Payment

 

After you have ascertained the capital value, property tax is calculated as follows:

Capital value of property x Current property tax rate (%) x Weight for user category

Weights for ‘user category’, in units:

  • Hotels and like businesses – 4 units.
  • Commercial properties (shops, offices) – 3 units.
  • Industries and factories – 2 units.
  • Residential and charitable institutions – 1 unit.

 

How to pay MCGM property tax online in Mumbai?

Property tax can either be paid at the BMC Help Centers, or at the Office of the Assistant Revenue Officer, or at the Citizen Facilitation Centre at all the ward offices.

You can also pay the property tax online, on this website: Municipal Corporation of Greater Mumbai (MCGM) – MCGM Property Tax

Step 1: After you click the above link, enter your account number.

Step 2: Here you check outstanding bills, receipt or directly make the payment.

Step 3: Once you make the payment, keep your property tax payment receipt safely. This is important, not only as a proof of payment, but also for proof of ownership of your property.

Step 4: Ensure that the system updates your record and no outstanding amounts are shown against your account. If there are any errors, have them corrected immediately.

 

How to get BMC property tax bill on e-mail?

The BMC has now announced that property tax payers can get their bill in their inbox, if they fill the Know Your Customer (KYC) form online. All notifications, alerts and tax bills will be sent to the registered email ID, once the KYC formalities are completed by the citizens. The civic body has requested all tax payers to finish the KYC as soon as possible and to avert penalties on delayed payment of property tax.

Here’s how to do the KYC on the BMC property tax portal:

Step 1: Visit MCGM Citizen Portal and enter your property account number.

Step 2: Enter the captcha and click on ‘login’.

Step 3: Upload the requisite documents and submit the attested copy.

Step 4: Enter the email ID and contact details for receiving property tax alerts through email and SMS.

Step 5: Once approved, you will get the confirmation on your email.

 

Steps for MCGM citizen cearch

To facilitate the process of scrutinising building plans and issuing approvals, the BMC has implemented the AutoDCR, an online platform. The authority has also enabled the generation and utilisation of transfer of development rights (TDR) through an online process, allowing architects to easily submit their applications.

The Municipal Corporation of Greater Mumbai (MCGM), through the portal, allows citizens to search for and know the details related to all the applications submitted to the corporation and to check the status of the file.

Here are the steps to use this online facility:

Citizens can access the MCGM Citizen Search through the MCGM AutoDCR link https://autodcr.mcgm.gov.in/bpamsclient2/Login.aspx.

 

Property tax in Mumbai: Complete guide about BMC and MCGM portal

 

To search for their application status, applicants should enter the file number and other details, such as applicant’s name, name of the architect/LS, zone name, ward name, plot number, CTS number, village, road, etc.

 

Property tax in Mumbai: Complete guide about BMC and MCGM portal

 

Property tax in Mumbai: Complete guide about BMC and MCGM portal

 

Applicants will be able to check the current file stage with zone and ward details.

 

MCGM property tax latest news

Update on September 21,2021

BMC announces no property tax hike in 2021

Following the joint rejection of all parties in the standing committee, the BMC has finally announced no hike in property tax for 2021. Media reports also suggest that the BMC may not hike property tax until 2025. The proposal to hike the property tax was tabled in June 2021 but was not passed by the committee. Owing to the Coronavirus pandemic that has financially drained people, this is a welcome decision for the residents of Mumbai. However, the BMC is expected to incur a loss of more than Rs 1,000 crores, because of the decision to not increase property taxes this year.

 

Update on July 21, 2021

Citizens urge BMC to levy tax on parking spaces at malls, shopping complexes

Recently, a popular citizen group, Watchdog Foundation, requested the BMC to levy property tax on parking areas of shopping malls, IT parks and commercial establishments in the city. At present, parking space in a building is not included in the FSI and is exempted from property taxes. However, civic officials claim that they do not have the authority to levy taxes on open plots that are used as parking spaces by commercial places, since the municipal act does not have any such provision.

 

Update on June 21, 2021

No property tax hike in Mumbai till COVID-19 situation improves

In a major relief for Mumbai tax payers, mayor Kishori Pednekar has announced that there will be no property tax hike in Mumbai till the COVID-19 situation improves. Earlier, speculations were rife that property owners may have to witness a surge in property tax rates in 2021.  However, the announcement has come as a respite for Mumbaikars, who have faced strict lockdown measures due to the second wave of Coronavirus infections.

Update on April 16, 2021

If media reports are to be believed, the BMC has recovered property tax dues to the tune of Rs 5,135.43 crores till March 31, 2021. This year’s collection is substantially higher than last year’s, when the civic body collected Rs 4,161 crores. It had set a target of collecting Rs 5,300 crores for 2020-21 and managed to achieve 98% of its target. Officials said this year they had the highest recovery in the BMC’s history till date. From April 1, 2020, to March 31, 2021, Rs 540.28 crores was collected from the K-east (Andheri, Jogeshwari) ward alone.

Update on March 19, 2021

The BMC has intensified its campaign to recover property tax dues from defaulters. It has now cracked the whip against 11,661 defaulters and initiated the process of attaching their properties. Meanwhile, the process of auctioning 42 properties has already begun, to recover property tax arrears of Rs 210 crores. In addition to this, the corporation had also disconnected the water supply to the properties of around 479 defaulters. According to media reports, the property tax collection this year has jumped to over Rs 3,800 crores, as of March 18, 2021.

Update on March 1, 2021

With the current financial year ending soon, the BMC’s property tax collection – the civic body’s primary source of revenue – is inching closer to its annual target. The BMC has collected Rs 2,002 crores in property taxes, as of February 25, 2021, making for an increase of Rs 1,264 crores since December last year. In 2020-21, the civic body had a target to collect Rs 6,768 crores in property tax but the same was revised to Rs 4,500 crores due to the COVID-19 pandemic. However, until December 2020, the civic body’s revenue receipts from property tax were at a measly Rs 738 crores.

Interestingly, since 2013, the civic body has been unable to match its target of income that it hopes to collect from all its sources, including property tax. For financial year 2018-19, while the property tax target was Rs 5,206 crores, the BMC managed to collect Rs 5,082 crores. In 2019-20, the BMC’s target was Rs 5,600 crores but only Rs 4,100 crores was collected. There are chances that the target could be met this year.

Update on January 4, 2021

The civic authority is planning to restore property tax on smaller dwelling units, which had earlier been waived off. According to the municipal commissioner, the state legislature, while amending the BMC Act had allowed the waiver of only general tax but the authority had waived seven other components, as well, by mistake. Over 1.8 lakh units are covered under this waiver from which the authority earns Rs 360 crores. The authority further said that recovery of the excess amount waived last year was under consideration.

Update on October 26, 2020

To provide relief to the property owners in the Mumbai, the BMC has proposed a complete waiver to property tax increase for one year. The proposal, if approved at a general body meeting will benefit over 2.83 lakh property owners who may have to face increased tax rates of up to 40 per cent. The last property tax revision happened in 2015 for five years. The fresh revision is scheduled for 2020-2025.

See also: Dos and don’ts for buying a property to earn rental income

(With inputs from PTI and Surbhi Gupta)

 

FAQs

Which properties are exempt from tax in Mumbai?

Residential properties up to 500 sq ft, within the Mumbai municipal area limits, are exempted from property tax.

How do I calculate property tax in Mumbai?

Use the above explained formula to calculate property tax.

I want to pay my property tax online in Mumbai. How can I do that?

You can pay the property tax online, on official websites by following the above procedure.

 

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