MCGM Property Tax: How To Calculate And How To Pay Property Tax In Mumbai?

MCGM, or the Municipal Corporation of Greater Mumbai, is the official authority of the State Government that oversees the infrastructural development of various locations in Mumbai. Under the Municipal Corporation Act of 1888, it is a mandatory requirement that all individuals owning property in the city pay the MCGM property tax every financial year.

MCGM Property Tax Due Date and Penalty Charge

The due date for paying the MCGM property tax in Mumbai is 30th June every year. Thus, property owners who fail to pay the MCGM property tax on or before the due date are charged a 2% penalty per month on the outstanding amount. This penalty shall continue for each succeeding month till you can cover the dues.

How to Pay MCGM Property Tax?

You can pay the MCGM property tax online for an instant and paperless payment procedure. Refer to the following simple steps to do the same:

1. Visit the official website of the Municipal Corporation of Greater Mumbai.
2. Navigate to the “Popular” Section and click on it.
3. Select the option called “Property Tax (New)”.
4. You will be redirected to a new page where you need to log in to your account with your credentials.
5. Now enter the required details about the property including the property account number and enter the captcha code.
6. On the next page, you can see the year-wise distribution of your all pending tax dues. Verify the details carefully and enter the amount you wish to pay.
7. Click on “Online Payment” and pay the amount through a preferred mode of payment.

Moreover, you can also opt for MCGM property tax offline payment if you are not comfortable in paying online. Visit a BMC support centre, the Office of the Revenues Officer, or a Citizen Facilitation Centre to make an offline payment for the MCGM property tax. Complete a form and remit the relevant tax. 

An MCGM tax receipt that serves as ownership documentation in land disputes will be sent to you. The tax receipt can also be used to amend your property title in the municipal records or to apply for a loan on your property.

MCGM Property Tax Payment Status

Property owners are allowed to check the MCGM property tax payment status in the following steps:

1. Visit the official website of the Municipal Corporation of Greater Mumbai.
2. Navigate to the “Popular” Section and click on it.
3. Select the option called “Property Tax (New)”.
4. You will be redirected to a new page where you need to log in to your account with your credentials.
5. Now provide the details of your property including property type, zone, year of construction etc.
6. Preview the details given and click on “Submit”.
7. You can now see the payment status of your MCGM property tax.

MCGM Property Tax Receipt

Whenever you pay property tax, a receipt for the same will be generated automatically. You need to download it for any future reference. You can also ask for the receipt from the necessary authority in case you opt for the offline tax payment process.

Nevertheless, you can refer to the following steps to download the MCGM property tax receipt online:

1. Visit the official website of the Municipal Corporation of Greater Mumbai.
2. Navigate to the “Popular” Section and click on it.
3. Select the option called “Property Tax (New)”.
4. You will be redirected to a new page where you need to log in to your account with your credentials.
5. Now provide the details of your property including property type, zone, year of construction etc.
6. Preview the details given and click on “Submit”
7. If you have already made the tax payment, you will get an option to download the receipt.
8. Click on the “Download” option.

Exemption Of MCGM Tax Payment

There are a few MCGM property tax exemptions that provide relief on certain factors to eligible property owners in Mumbai. These include the following:

• Properties in Mumbai that are exclusively used for charitable purposes or public worship are eligible for an exemption from property tax.
• Houses or lands that measure less than 500 square feet get an exemption from property tax.
• Properties in the city that belong to the Consular Missions of foreign states or Diplomatic authorities are also exempt from property tax.
• Houses or lands that measure between 500 to 700 square feet are eligible to get a 60% concession on property tax.

How to Calculate MCGM Property Tax?

The calculation or evaluation process of the MCGM property tax is based on different parameters. These include location, property type (commercial or residential), construction type (single floor or multi-story), construction age, classes of amenities provided, carpet area, status of the property occupancy and Floor Space Index (FSI).

After assessing these factors, civic bodies determine your property tax due amount based on the formula of the capital value system.

Therefore, it is better to opt for an online calculation of the same than manually calculating to avoid the risks of incorrect answers. You can refer to the following steps to calculate your MCGM property tax:

1. Visit the official website of the Municipal Corporation of Greater Mumbai.
2. Navigate to the option called “Property Tax” under the “Popular” section.
3. You will be redirected to a new page where you need to log in to your account with your credentials.
4. Now go to the property tax calculator option.
5. Fill in the required details about the property which include the ward number, type of building, floor nature, user category, age of construction, tax code, FSI etc.
6. Preview the details provided and click on “Calculate”. The screen shall display your due MCGM property tax.

MCGM Property Tax Formula

The Municipal Corporation of Greater Mumbai determines the MCGM property tax using the capital value system, which includes the property’s market value to calculate the due tax. Thus, the following is the formula based on which your property tax in Mumbai is calculated:

Property Tax = Capital Value x Property Tax Rate

You must remember that the property tax you pay is a certain percentage of the capital value, while the capital value depends on the base value of the property. Thus, Capital Value is determined by BV x UC x NTB x AF x FF x CA.

In this case, BV stands for the Base Value of the property according to the Ready Reckoner Rate.

UC = User Category of the property.

NTD = Nature and Type of the property.

AF = Age Factor of the property.

CA = Carpet Area of the property.

Conclusion

MCGM property tax is one of the essential forms of revenue that contribute towards the upliftment of the infrastructure and administrative operations in Mumbai. Thus, you need to stay updated on the recent changes in property tax rates for different locations in the city. You can also calculate and determine the amount that is due.

Therefore, if you own a property in Mumbai or you are planning to purchase a property in the city, you must understand the significance of MCGM property tax to have an informed approach towards the same.