Updated on: Jan 13th, 2022
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6 min read
The municipal corporation of Mumbai which is responsible for collection and administration of property tax and maintaining civic amenities is known as Brihanmumbai Municipal Corporation (BMC) in Marathi and Municipal Corporation of Greater Mumbai (MCGM) in English. However, Navi Mumbai is maintained by ‘Navi Mumbai Municipal Corporation’ (NMMC).
BMC was constituted under the Bombay Municipal Corporation Act, 1888 and is India’s richest municipal corporation. BMC follows capital value-based system for property tax calculation like Pune. Capital value is based on market value of the property.
The property tax is a percentage of the capital value of the property.
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
Property tax can be computed online at BMC website by entering Ward, Zone, locality, area, usage, occupancy type, total carpet area, year of construction, floor type etc.
Property tax can be paid both offline and online in Pune.
Online payment– BMC/MCGM:
Online payment- Navi Mumbai/NMMC: Taxes to NMMC can be paid online by visiting NMMC portal and entering ‘property code’.
Offline payment: If you do wish to make the payment manually, it can be paid at nearest assistant revenue office or BMC helps centers or citizen facilitation center at all ward offices.
Income Tax Implications
Remember to claim the municipal taxes paid during the year as a deduction from your house property income.
Computation of property tax under NMMC.
Property tax rates of BMC based on user category.
Various multiplication factors like age factor, usage factor etc
The BMC and NMMC are responsible for property tax payment and civic amenities in Mumbai and Navi Mumbai respectively. Property tax in BMC is based on capital value, calculated online. Payment can be made offline or online. Exemptions include properties for worship, Diplomatic Missions, and small houses. Municipal tax paid is deductible from house property income in Income Tax. Users can choose bank/payment gateway for online payment of property tax.