Property Tax in Mumbai

Mumbai Property tax system will be given a face-lift soon to remove the inequality in the system as different tax are charged to the properties located in suburbs and island city. The whole property tax system in Mumbai works on the Mumbai Provincial Municipal Corporation Act, 1949. It is one such act on property that imposes various taxes on the property in Mumbai. Except for the burial grounds, land used for public worship and public charity all other properties and land need to pay tax under this act. The Mumbai city is divided into wards and property tax rates are fixed ward-wise by Mumbai Municipal Corporation. For the property tax assessment purposes area of property is considered. Different system is followed to do the tax assessment of buildings of schools, colleges, charitable institution, open land in the city. Bombay Municipal Corporation (BMC) Act is used to calculate property tax. According to this, property tax is calculated on the basis of the rent the property is likely to earn. After doing the assessment the property tax appraisal is done which means placing the value on property.

Mumbai Property Tax Rules

The full liability of paying property tax lies on the shoulder of the holder of the property even if he has given property on rent. In Mumbai city the owners need to file property tax returns annually. The property tax return form will ask for detailed information on the size of the property, its location, age of building etc. The Municipal Corporation of Greater Mumbai also known as Brihanmumbai Municipal Corporation (BMC) has its official website on property tax and is one of the richest corporation in India. It gives information on how, when and where to pay property tax.Property tax in Mumbai becomes due twice a year. First on the 1st of April and second on the 1st of October every year. Concessions are granted in percentage if taxpayers pay tax on time.

In case property tax in not paid on time demand notice is served to the holder of the property. Further if taxpayer does not pay tax within 15 days of the served notice a warrant is issued and the property is seized. In case to transfer the property tax, the original holder of the property has to give notice of transfer of property to the Mumbai Municipal Corporation. Only after getting the notice the tax will be transferred otherwise it will be levied on the same person. The owner of any illegal building or apartment in Mumbai is required to pay double the amount of property tax. The extra amount is charged as a fine on them.

There are many property tax consultants and firms in Mumbai, which give property tax advice. These knowledgeable consultants specialized in the area of law can represent you in court related to any matter concerning property.

They can make property tax appeal on your behalf if there is any disparity. They even help to calculate property tax. In case property tax levied on you is not according to your estimate you can always seek the help of consultant or give full details in writing to the society. These particular societies in the distinct ward will take up matter with Municipal Authorities of that area in Mumbai. If they find any appeal made by you is correct then you will get some relief from property tax. To further reduce the burden of paying tax in one go many banks provide the facility of property tax loan in Mumbai. The loan taken can be returned back in easy installments. So it is better to give your property tax on time as all this money is used for the development of your city. Property tax services are also available online. You can check the official website of Municipal Corporation of Greater Mumbai for further detail.