In order to maintain basic civic amenities and provide infrastructural facilities in the city, property tax acts as one of the principal sources of revenue for the Urban Local Bodies (ULB’s). As per the census report, Mumbai is the home of about 20.5 million people. Brihanmumbai Municipal Corporation (BMC) is responsible for collecting property tax in Mumbai.
BMC, which is also known as Municipal Corporation of Greater Mumbai (MCGM), is India’s richest municipal corporation. As per the last budget presented by the BMC, the share of property tax stands around 22% of the total revenue.
Unlike other municipal corporations of the country, BMC calculates property tax based on the market value of the property. BMC uses Capital Value System to calculate property tax which in turn based on the market value.
BMC Property Tax Computation Method
Apart from the market value, BMC also considers other factors like carpet area, use factor, age factor, floor and occupancy factors.
The formula used for the property tax calculation by the BMC is as follows:
Property Tax = Tax Rate * Capital Value
Capital Value = Market Value of the Property (Based on the Ready Reckoner) * Total Carpet Area * Use Factor * Age Factor * Floor Factor * Occupancy Factor
Here, the market value of the property is based on the ready reckoner which is used to calculate the stamp duty by the revenue department. Ready reckoner calculates the market value of the property using the area rates published by the Government of Maharashtra in a book called Annual Statement Rates (ASR).
- Use factor is whether the property is residential or non-residential.
- Age factor assigns the weight as per the year in which the property was constructed.
- Floor factor depends on the floor on which the property is located. Floor factor is inversely proportional to the floor number.
- Occupancy factor is dependent on whether the property is self-owned or rented.
You can pay your property tax online at BMC website by furnishing the required details including ward no, zone, locality, carpet area, usage and occupancy type, year of construction and floor type.
How to Pay BMC Property Tax Online
Here is how you can pay your property tax online at BMC’s website :
- Go to BMC’s online Portal
- Click on ‘Online Service’ option on top. A drop-down menu will appear. Please click on ‘Property Tax Details’.
- You will be directed to a page where you need to enter the Asset Account Number. The property account number is generally mentioned in your old property tax receipt.
- Now, click on ‘Payment’ option to pay the property tax. If you want to just download the old receipts, then click on ‘Receipt of’ option. If you just want to check the outstanding tax, then click on ‘Outstanding Bills’ option.
- Alternatively, you can visit BMC citizen login portal and enter the property account number to login to the portal and pay the property tax. If you don’t know about your property account number then you can click on the ‘Search’ option and by entering the address details of the property you can get your property account number.
- Once logged in, please verify the details of the property displayed and click on ‘Accept’.
- The year wise distribution of the outstanding amount will be displayed.
- Enter the amount you want to pay and then click on ‘Online Payment’.
- You can make an online payment using net banking. After making the payment, you can download the tax payment receipt.
Note: If your property is located in Navi Mumbai then you can make the property tax payment by visiting the website. You need to enter the property code and follow a similar procedure.
Rebates on Property Tax by BMC
- Property Tax on houses that have a carpet area upto 500 sq. ft are exempt from payment of the property tax.
- Houses/flats measuring between 500-700 sq. ft are eligible to get 60% concession on property tax.
- Properties exclusively used for public worship or charitable purposes.
It is to be noted that the last date for property tax payment in Mumbai as set by BMC is 30th June of every year. Interest at the rate of 2% per month will be levied in case delay of the payment of the outstanding amount.