Property Tax Nagpur (NMC)

Updated: 20-05-2024 10:19:04 AM

Nagpur is the third largest city of Maharashtra and is also its winter capital. Also known as the “Orange City” for its vast swaths of orange cultivation, property tax in Nagpur is applicable to all residential and commercial properties. Some key types of properties that are liable to be charged property tax in Nagpur include – residential properties (whether it is occupied by self or rented out), office buildings, flats, shops, factory buildings, warehouses, etc. The key use of the revenue collected through property tax is the development and maintenance of various public utilities.

How NMC calculates property tax?

The Nagpur Municipal Corporation (NMC) has nearly 8 lakh registered properties and since 1st April 2017, it has been imposing property tax on the ‘ratable value-based tax system’, which is calculated on the Annual Letting Value (ALV) of the property. This property tax is based on many factors such as block, net built-up area, structural details, usage, the age of the property and occupancy.

The property tax department of the NMC calculates monthly rent, from which it derives the annual rent of the property. The department levies 10 percent amount from the total letting value as general tax. Nagpur has been divided into six blocks on the basis of the ready reckoner rates of properties. The factors which are taken into consideration while calculating the property tax amount in Nagpur are as follows:

• The properties which have a ready reckoner (RR) rate of above Rs 50,000 are considered to be in Block 1 with a value of Rs 11; properties with a RR value of between Rs 40,000 and Rs 50,000 are placed in Block 2 with a value of Rs 10. Properties with a RR value of between Rs 30,000 and Rs 40,000 are placed in Block 3 with a value of Rs 9, while properties with a RR value between Rs 20,000 and Rs 30,000 are placed in Block 4 of Rs 8. Properties with a RR value between Rs 10,000 and Rs 20,000 are placed in Block 5 of Rs 7, while properties below the RR value of Rs 10,000 are placed in Block 6 of Rs 6.
• Properties are also divided into four categories based on their structure, such as ‘premium quality’ (with a weightage of 1.25), properties with a ‘good quality’ (with a weightage of 1), properties with an ‘average quality’ (with a weightage of 0.80) and those of ‘low quality’ (with a weightage 0.50).
• The usage factor is divided into three categories, namely commercial (with a weightage of 2.5); unspecified (with a weightage of 2); and residential properties (with a weightage of 1).
• Commercial properties registered with NMC (Nagpur Municipal Corporation) include airport buildings, restaurants, bars, marriage halls, ATMs, banks, shopping malls, multiplexes, petrol pumps, health clubs, hospitals, clubs, shops, lodges, and special parking lots.
• Residential properties that the NMC takes into account for calculating property tax include open plots, residential buildings, education institutes, trust hospitals, religious complexes, sports grounds, and advocates’ chambers.
• Then there is an unspecified category, which consists of warehouses, factories, non-AC offices, and other properties which are not covered in commercial or residential categories.
• Properties are also divided as per their age into 7 sectors: properties between 0-10 years of age are allotted a weightage of 1; those between 11-20 years of age are given a weightage of 0.95; those between the ages 21-30 are allotted a weightage of 0.90; those between the ages 31-40 years are given a weightage of 0.85; properties between ages of 41-50 years are given a weightage of 0.80; and properties between ages 51-60 years are given a weightage of 0.75; while properties aged over 60 years are given a weightage of 0.70.
• For the purpose of levying property tax, NMC calculates the area of the property in square meters. 10% is deducted from the total super built-up area to calculate the Annual Letting Value (ALV) of the property.
• NMC also calculates property tax based on the ‘Special Clean-Up’ areas, such as hotels, restaurants, and hospitals. These property owners have to pay 7 percent of the ALV up to Rs 50,000 and 10 per cent for properties with an ALV of over Rs 50,000 as property tax in Nagpur.

Nagpur Property Tax Payment

• You can view your property tax demand by using the index number of your property. You can find the index number of the property on previous years’ property tax payment receipts.
• Please log on to the Property tax page of Nagpur Municipal Corporation
• Click on the ‘view your property tax demand’ option and enter the index number of your property.

You can pay your property tax in Nagpur either offline or online. When you want to pay it offline, you will need to carry your property tax bill to the municipal office of your area and pay by cash or cheque at the appropriate counter. You will be given a receipt of your payment which you should keep handy.

You can pay your property tax online by visiting the property tax page of Nagpur Municipal Corporation. The payment can be made by your chosen method, namely credit card, debit card, or net banking. A receipt of your payment will be generated automatically which you can save locally on your PC or get a printout and save it as you save your offline payment receipt.