The Brihanmumbai Municipal Corporation (BMC) charges property tax, based on construction of new property, location, age and area. By collecting this tax from the residents, BMC makes a profit of nearly Rs 3,000 crores.
The BMC has made the process of payment of the property tax by Mumbai residents very simple and convenient. Development of a mobile app to facilitate payments of property tax by the Mumbai residents is also under consideration of BMC. This job will be done through Municipal Corporation of Greater Mumbai (MCGM).
Property tax bills can also be paid online by just visiting MCGM's official website. You need to click on "Property Tax New" on the website and then you will be directed to a new page "Citizen Portal Services". Now you can login to your property tax account and proceed paying the property tax online.
Municipal Corporation will send you your property tax bill after assessing the value of your property. BMC sends the property tax bill to individuals stating the property tax bill outstanding which needs to be paid by them. The bill contains the full cash value, assessed value and taxable value of the concerned property.
In Mumbai, the property tax calculation is done on the basis of the annual value of the property. The annual value differs from property to property and hence the annual values of self occupied property and let out property will be different. In case of let out property, the annual value is considered to be the highest of rent or municipal valuation received or fair rent decided by IT department of India. However in case of self occupied property, the annual value is considered to be zero if the property is used to stay by the owner himself or is vacant.
But if the property is then let out on rent for a year or a few months, the annual value will be calculated accordingly. You can calculate your property tax in Mumbai by just visiting the official website of MCGM. After clicking "Property Tax New", you will see the calculator window where you can calculate the tax.
For this you need to input some information like, occupancy type (self-occupied/ rented), date of effect, floor sub-type (attic, loft, mezzanine), floor, construction's year, user sub-category, sub-zone, type and nature of building (kuccha, luxurious, structure etc.), zone, user main category (land, commercial, residential and industrial), floor space index (FSI), building's age, tax code and if water connection availability or non-availability. After filling this information, the annual value of the property will be shown by the calculator.