The main civic authority in charge of overseeing numerous public services in the Indian city of Mumbai is the Municipal Corporation of Greater Mumbai (MCGM), better known as the Brihanmumbai Municipal Corporation (BMC).
The assessment and collection of property taxes from properties under its authority is one of its main responsibilities. Property owners are required to pay a local tax to the municipal corporation based on the value of their properties. Property tax money is used to pay for a number of public facilities and services, including water supply, trash collection, street lighting, and road upkeep.
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 Pay MCGM Property Tax?
- 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 enter the required details about the property including the property account number and enter the captcha code.
- 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.
- 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.
FAQs
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.
Exemption Of MCGM Tax Payment?
- 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.