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

Mumbai is the financial capital of India, with a population of around 21.7 million people. Thus, in a fast-paced city like Mumbai, the Municipal Corporation of Greater Mumbai (MCGM) effectively manages the accumulation of property tax. It is a form of revenue that every property owner is mandated to pay as per the conditions applicable.

Hence, MCGM property tax is one of the crucial factors contributing to Mumbai's infrastructural progress. It is a significant source of revenue for the State Government, which is used to develop the areas under the city's specific jurisdictions.

Read the blog till the end to find out more about the same. The blog will focus on the following:

• Introduction of MCGM Property Tax
• Formula to compute MCGM Property Tax
• Computation of MCGM Property Tax
• How to pay MCGM Property Tax
• Exemption of MCGM Property Tax
• Due Date of payment and applicable penalties
• MCGM Property Tax receipt
• MCGM Property Tax Payment Status
• How to download the MCGM Property Tax Bill
• Conclusion

What is MCGM Property Tax?

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.

Therefore, it levies tax on all city property owners who hold a domicile certificate. 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.

It is also important to note that different percentages of tax rates apply to different locations in the city. Besides, several other factors, such as property type, zone, etc., determine your property tax amount. You must learn about such factors to ensure you pay the right tax amount on time and avoid any legal obligations or penalties.

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 is the User Category of the property.

NTD refers to the Nature and Type of the property.

AF is the Age Factor of the property.

CA stands for the Carpet Area of the property.

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:

• Visit the official website of the Municipal Corporation of Greater Mumbai.
• Navigate to the option called “Property Tax” under the “Popular” section.
• You will be redirected to a new page where you need to log in to your account with your credentials.
• Now go to the property tax calculator option.
• 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.
• Preview the details provided and click on “Calculate”. The screen shall display your due MCGM property tax.

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.

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.

Due Date and Penalty Charge

The due date for paying the MCGM property tax in Mumbai is 30th June every year. The last date to pay the property tax is mandated by the State Government every financial year. Hence, it is advisable to research and ensure the same. This is because property owners can get penalty charges in case they fail to pay the tax before the last date.

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.

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:

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

MCGM Property Tax Payment Status

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

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

MCGM Property Tax Bill Download

The MCGM portal for property tax does not offer an option to directly download the property tax bill. However, property owners are still allowed to access and view it online through the following steps:

• Visit the official website of the Municipal Corporation of Greater Mumbai.
• Navigate to the “Popular” Section and click on it.
• Select the option called “Property Tax (New)”.
• You will be redirected to a new page where you need to log in to your account with your credentials.
• Once you locate your property by providing the details like property type, zone, year of construction etc. you can see an option called “View Bill”.
• Click on the option and you can see the MCGM property tax bill.

Even though you cannot download it, you can take a screenshot and print it out to keep it as a hard copy.

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.

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