BMC Property Tax Online- Vital Aspects

When it comes to BMC property taxes, you need not worry at all. One of the most popular searches is BMC online property tax payment and queries covering how to pay BMC property tax online. The entire procedure for BMC property tax payment is quite seamless and hassle-free by all means. There are only a few methods to be implemented with regard to BMC online tax payment and you only have to make sure that you save the BMC property tax receipt for future reference. This is a vital aspect of the BMC tax payment procedure that you should always know.

The BMC stands for the Brihanmumbai Municipal Corporation in Marathi and MCGM (Municipal Corporation of Greater Mumbai) in English. Navi Mumbai, however, is governed under the NMMC which stands for the Navi Mumbai Municipal Corporation while other authorities like the KDMC (Kalyan Dombivali Municipal Corporation) also exist. The BMC was established under the 1888 Bombay Municipal Corporation Act and is the wealthiest municipal corporation in India. The capital value based framework is followed for calculating property taxes like the city of Pune. You should always check the BMC property tax bills of previous years carefully for noticing changes in tax rates. At the same time, knowing the formula for calculation of BMC house taxes is essential.

Formula for Tax Calculation

The property tax is basically a percentage of the property’s capital value. The formula to be followed is Property Tax = Tax Rate * Capital Value. Here Capital Value will be worked out through this system- 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 calculated on the ready reckoner rate already used for stamp duty calculation through the revenue department. You may calculate property tax online at the BMC website through entry of aspects like the zone, ward, usage, locality, total carpet area, occupancy type, construction year, floor type and so on. The due date for property tax payments is 30th June at the BMC and penalties are chargeable at 2% every month if there are delays in payments beyond the due date for the outstanding property tax payment. This is the basic framework that you should use for the BMC assessment bill and also for BMC tax payment online.

Paying BMC Property Tax Online

The procedure for payment of BMC online tax is quite simple. You can readily pay BMC tax online with a few helpful steps. Post payment, as mentioned, the BMC property tax payment receipt will be generated and you should save this for future reference. The BMC tax receipt is a handy document and you should ensure that you also use the BMC property tax calculator given online. Here are the steps to be followed:

1. Go to the online BMC portal
2. Go to Online Services before clicking on Pay Property Tax.
3. Enter the property account number (shown in the upper segment of the old property tax receipt) and select whether you wish to view outstanding bills or view the receipts or make payment and then click likewise.
4. You can also login with the property account number at the BMC Citizen login portal.
5. If you do not know this number, click Search and enter ward, building address and name for this purpose.
6. Upon logging in, verify all the details and then click accept.
7. You will find the year-wise total outstanding amount shown on the screen.
8. Enter the amount payable and click Online Payment.
9. BMC website only has support for net banking currently and you can choose the payment/bank gateway before clicking Pay Now and making your final payment likewise.
10. Save your receipt for usage in the future.
11. You may also print the receipt given through the BMC online website. Choose to view receipts under online services.

NMMC or KDMC payment methods are separately applicable at their respective online websites. You can also manually pay at the nearest assistant revenue office or the BMC help center/citizen facilitation center across all the ward offices. Exemptions and concessions are given to properties which are exclusively used for charitable purposes and public worship, those belonging to diplomatic/consular missions of foreign states as specified by Government, homes/flats sized at less than 500 square feet and 60% concession is applicable on property taxes for houses/flats that measure 500-700 square feet. You can claim municipal tax payments as deductions on house property income.

You can also get your BMC property tax bill on your email as per the recent announcement by the organization. You can fill up the KYC (know your customer) form online and all alerts, tax bills and notifications will thereafter be sent to the email ID likewise. Upon completion of KYC formalities, this procedure will be activated accordingly. You have to go to the MCGM Citizen Portal and enter property account number, enter the captcha code and click login before uploading all vital documents and submitting the attested copy as well. Enter your email ID and contact information for getting property tax alerts via SMS and email. Upon approval, you will obtain the email confirmation likewise.

Is BMC Mulling Higher Property Taxes?

Owners of property in Mumbai may have to pay slightly higher taxes soon with the BMC (Brihanmumbai Municipal Corporation) pondering over a proposal to collect taxes on the basis of latest ready reckoner rates. The Standing Committee of the BMC has already received the Assessor and Collector department’s proposal. If this is approved, then it will be implemented till 31st March, 2025. The Corporation has proposed a ready reckoner based rate applicable from 1st April, 2021. This may increase present rates of property taxes by up to 14%.

Ready reckoner rates help in calculation of market values of immovable properties such as residential, land, industrial and commercial. It is also a factor for property tax calculation. Mumbai alone has 4.2 lakh owners of properties and out of this around 1.37 lakh property owners have home sup to 500 square feet. The last revision was done for 5 years in the year 2015. Based upon the amendment stated in the Mumbai Municipal Corporation Act, a property tax assessment revision is done for every 5 years and this may also be done at the end of a 5-year period. The fresh revision was slated for 2020-25 although the BMC thought of not revising it in the last year, taking the coronavirus pandemic into account.

With this revision in place, the BMC may increase property taxes by up to 40%. Based upon the proposal however, the BMC will not be revising property tax rates for the four years since there is a case pending at the Supreme Court and its outcome may impact revised regulations as per the Head of the Assessor and Collection department. The proposal still remains pending and if approved, the revenues of the BMC may go up by a whopping Rs. 1,000 crore for FY2021-22. The proposed regulations will not affect properties sized up to 500 square feet. It will also give relief to hotels registered under the tourism ministry. They will receive industrial status, ensuring rebates in electricity, water tax, sewerage charges, development taxes and property taxes overall.

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