Property Tax in Mumbai

BMC was constituted under the Bombay Municipal Corporation Act, of 1888 and is India’s richest municipal corporation. Like Pune Municipal Corporation, BMC follows a capital value-based system for property tax calculation. In this system, property taxes are based on the market value of the property. Taxes can be paid either online or over the counter, but it is noteworthy that paying within the due date is crucial to avoid penalty.

BMC Property Tax Due Date

• The due date for payment of property tax in BMC is 30th June.
• Penalty is charged at 2% per month in case of delay in payment beyond the due date on the outstanding amount of property tax.

Steps for Payment of Property Tax in Mumbai

Property tax can be paid both offline and online in Mumbai. 

Online payment– BMC/MCGM:

• Visit the BMC online portal
• Under the ‘Citizens’ tab click on ‘property tax’
• Enter the property account number (indicated on the upper portion of the old property tax receipt) and log in to your account.
• If you do not know the property account number, click on ‘search’ instead of login, and enter the ward, name, and address of the building to search.
• Once logged in, verify the details of the property that is displayed and click on ‘accept.’
• The total outstanding amount year-wise will be displayed
• Enter the amount you wish to pay (please note payment will be adjusted on a FIFO basis) and click on ‘online payment.’
• Payment can be made through net banking, credit card or debit card, and you can choose a bank /payment gateway name and click on ‘pay now’ and make the payment
• Save the receipt for future use.

Online Payment-Navi Mumbai/NMMC: Taxes to NMMC can be paid online by visiting NMMC portal and entering ‘property code’. 

Offline Payment: If you wish to make the payment manually, you can do so at the nearest assistant revenue office, BMC help centres, or citizen facilitation center at all ward offices. You can pay through various modes, such as cash, cheque, UPI, etc. Once you make the payment, you will receive a receipt for future reference.

Exemption/Concession from Payment of Property Tax

• Property exclusively used for public worship/charitable purpose
• Properties belonging to the Diplomatic or Consular Mission of a foreign State as specified by the Government
• Houses/Flats measuring less than 500 square feet are exempt from property tax payment.
• 60% concession on property tax for flats/houses measuring between 500 to 700 sq ft
• Residential properties owned by ex-servicemen/war widows.

Formula for Property Tax Calculation - Mumbai

Property tax is charged as a percentage of the capital value of the property. However, it depends on various factors, such as the type of property (e.g., residential or commercial), the usage of the property (self-occupied or rented), age, and size. 

Property tax = Tax rate * Capital Value 

Where capital value = Rate of base value* Total carpet area/area of land in case of vacant land * building type* age factor* usage factor* floor factor.

Base value is based on the ready reckoner that is used to calculate stamp duty by the revenue department.

Whereas,

• Building type refers to whether the building is residential or commercial.
• The age factor refers to the period since the construction.
• Usage factor depends on whether the property is used by the owner or the tenant and
• The floor factor refers to the floor at which the property is located.
  
  Property tax can be computed online at BMC Property Tax Calculator by entering the Ward, Zone, locality, area, usage, occupancy type, total carpet area, year of construction, floor type etc.

Income Tax Implications 

Remember to claim the municipal taxes paid during the year as a deduction from your house property income.