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Property tax, also known as municipal or house tax, is an essential component of the Indian taxation system and one of the major sources of revenue of the governing bodies. In India, the local municipal authority is responsible for evaluating, imposing, and collecting the property tax to maintain and upkeep local civic amenities.Â
To make the process of paying taxes hassle-free, we have come up with a complete guideline of MCGM property tax.
Wondering what MCGM property tax is? Read along!
The Municipal Corporation of Greater Mumbai (MCGM), previously known as the Brihanmumbai Municipal Corporation, is the governing civic organisation of Mumbai. Residents of Mumbai owning real estate, house, shop, office, building, land, and rented properties are subject to pay Brihanmumbai Mahanagarpalika property tax.
The property tax calculation process slightly varies from other municipal corporations, as MCGM calculates property tax based on the property's market or annual capital value. Thinking about how this method would affect your MCGM property tax payment? Let us give you a detailed description regarding the whole calculation as well as the payment procedure.
Previously property tax was calculated using the rate-value system where the payable tax was fixed based on rent collected from a particular property in a year.
However, the system generated low revenue due to the artificially low property charges imposed by the Rent Control Board.Â
However, the new system adopted by MCGM follows a capital value system where the tax calculation system depends on the stamp duty Ready Reckoner rate.
This rate is issued by the Government, which helps to evaluate the property value based on various parameters.Â
MCGM revises this rate annually to fix a realistic value. MCGM is the richest municipal corporation in India, whose annual budget is more than the yearly budget of some of the smaller states in the country.Â
Now that the taxpayers know about the new property taxation system, they must know the MCGM property tax calculation process as well.
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The MCGM property tax calculation or evaluation depends on several parameters such as property location, property type-residential, commercial or land, classes of amenities provided, construction age, construction type-multi-story, single floor or kutcha house, property occupation status, carpet area, and Floor Space Index (FSI).
Assessing all these factors, civic bodies devise a formula to calculate the tax liability of Mumbaikars.Â
Here is the formula for calculating MCGM property tax.
Property tax = Tax rate X Capital value
Note:Â
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Therefore,Â
Capital Value = Rate of the base value/ Market value of the property (based on the Ready Reckoner) x Built-up area x Age factor x Type of building X Category of use X Floor factor.
There are different weights assigned for various factors like construction type, age of the building, and user category.
Read the chart provided below to know about the weights of the respective parameters.
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Weights for construction type in units:Â
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Weights for property age in units:
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Weights for user category in units:
(The weights mentioned above are subject to change (without prior notice) as per the BMC/MCGM website).Â
Hence, before calculating the MCGM property tax manually, one must check the website thoroughly. Also, taxpayers can calculate the property tax in Mumbai through the online calculator available in the MCGM online portal.
As stated earlier, the base value or market value of the property depends on the Ready Reckoner which is used to calculate the stamp duty by the revenue department.
Ready Reckoner calculates the base value by using the area rates issued by the Maharashtra Government in the Annual Statement Rates (ASR).   Â
After discussing the MCGM property tax calculation process in detail, we will focus on the payment process of property tax in Mumbai.
Taxpayers can opt for both online and offline methods for this annual payment. But, first, we will delve into how to pay MCGM property tax online.
Follow the step-by-step process to pay MCGM property tax online.
MCGM property tax online payment through BMC/MCGM online portal.
Step 1Â -Â Visit the BMC online portal.
Step 2Â -Â Provide the property account number. (You will be given three options where you can view outstanding bills or receipts or make payment).Â
Step 3 - Click on make payment. Keep your payment receipt of property tax MCGM for future reference.
MCGM property tax online payment through BMC/MCGM citizen login portal
You can complete the MCGM property tax payment online by using the payment gateway and generate a slip.Â
Please note, the online payment is conducted through National Electronic Funds Transfer (NEFT) from banks, net banking, or via credit cards or debit cards.
To pay property tax in Mumbai offline, taxpayers must pay the due amount at the BMC Help Centres, the Office of the Revenue Officers or at the Citizen Facilitation Centres operating in all wards.Â
Upon completing the MCGM property tax payment procedure, an MCGM property tax receipt is issued for online and offline use. The receipt acts as ownership proof during any land dispute.
Moreover, this document helps to avail loans against property or to update the property title in the local authority books.
Like every tax payment, the window is open for a limited time, MCGM property tax payment is no different. So continue reading to know the last date of MCGM property tax payment.
The due date for payment of MCGM property tax in Mumbai is 3rd June. Previously the deadline was 31st March.
Penalty Charges
Those who fail to pay MCGM property tax within the stipulated date will incur a penalty charge of 2% per month on outstanding payments for each succeeding month.
Proceeding to the next discussion, we would like to provide taxpayers with the information regarding MCGM property tax paid receipt.
As stated earlier, taxpayers can download the MCGM property tax receipts after completing the payment.
In case a taxpayer wishes to download the old receipts; he/she can follow the process mentioned below-
Taxpayers, who have followed the offline MCGM property tax payment, can avail of the challan from their respective payment centre.
As per a report published by Brihanmumbai Municipal Corporation in 2020, taxpayers can get the property tax bills through email once they fill the Know Your Customer (KYC) form online. Read on to know the complete process to complete the online KYC process on the BMC/MCGM online portal.
Taxpayers can avail rebate on MCGM property tax in the following cases.
Brihanmumbai Municipal Corporation has introduced a new scheme named the early bird incentive scheme. The civic body offers a 2% and 4% tax concession if an individual pays the half-yearly and second instalment amount within the due date.
However, the rebate is only accessible for taxpayers who have no outstanding dues against the property.
Property tax is an indispensable charge that every property owner must pay. Though there is an online and offline method available in India, taxpayers must choose any of them as per their suitability and enjoy the rebate offered by the Government.
With such detailed information on MCGM property tax, we have reached the end of the write-up.
Therefore, pay your property tax and live to behold a beautiful locality with enhanced amenities in Mumbai.