A complete guide to BMC Property Tax payment (2015)

BMC Property Tax payment

As per a new resolution of the BMC’s standing committee, property owners in Mumbai will have to pay an average increase of 14.52% as property tax from April this year. However, owners of flats that measure less than 500 sq ft will not pay the increase as they have been granted relief by the Chief Minister. Under the new rules, there will be no increase for this section for a period of 5 years; a  respite for around 17 lakh families living in houses which have less than 500 square feet of area.

For the information of our readers, The Brihanmumbai Municipal Corporation (BMC) has changed the property tax calculation from the earlier Rateable Value System (RVS) to the new Capital Value System (CVS).

So, how will the property tax be calculated now? Under the RVS, the tax was calculated based on the maximum amount of rent that the property could fetch in a year. The CVS is based on the market value of the property. Read on for clarifications on tax calculations and to know how to pay these taxes.

Calculation of Capital value:

Market value of property (X) total carpet area (X) weight for construction type (X) weight for age of building

The Ready Reckoner (RR) will help you arrive at the market value. RR is a compilation of the rates that denotes a fair value price for a property set by the state government. The builder may charge a premium over such rates however cannot under sell it. The RR gives the base value. Remember, the stamp duty and registration amount payable cannot be lower than these rates.

Check the ward / zone in which your property falls.

Weights for construction type are calculated in units. Refer below for details:

Bungalows & RCC construction 1 unit

Other than RCC (semi-permanent / chawls) -0 .60 unit

Under construction or vacant land 0.50 unit

Weights for age of building are calculated in units Refer below for details:

Properties constructed before 1945 0.80 unit

Properties constructed between 1945 and 1985 0.90 unit

Properties constructed after 1985 1 unit

Now, how is the property tax calculated?

Capital value of property (X) current property tax (X) weight for user category

A weight for user category is calculated in units. Refer below for details:

Hotels and similar businesses 4 units

Commercial properties (shops, offices) 3 units

Industries & factories 2 units

Residential & charitable institutions 1 unit

Where can you pay the property tax?

You can pay property tax at:

• The Office of the Assistant Revenue Officer
• the BMC Help Centres
• The Citizen Facilitation Centre at all the Ward Offices.

You can also make an online payment. Read on to note down the steps:

Log on to the BMC website:

http://cvs.mcgm.gov.in:7001/MCGM_CVS/

• Enter your account number mentioned in your property tax bill. In case you do not remember your account number, use the in-built search feature.
• Choose the option of payment: half-yearly or annually
• Enter the amount to be paid. You will be directed to the payment mode. Currently only ‘Net Banking’ service is available.
• After the payment is successful, the system will generate a receipt. Print it and store for your record.

Make sure that your record is updated and no ‘outstanding’ is shown against your account. In case of such amiss, the responsibility to get it rectified is on you.