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How to Pay MCGM Property Tax
The property tax is a direct tax and can be paid to the municipal corporation of the state. The maintenance of civic amenities is the first and foremost responsibility of the state government and hence the collection is done by the municipal corporations on behalf of them. The property tax has to be paid annually and is subject to penalties and charges if not paid on time. The municipal corporations collect the funds from the taxpayers and remit them to the state governments in the country. One of the oldest municipal corporations in the country is MCGM.The municipal corporation which takes care of the infrastructure and all the civic amenities in Mumbai is called the Brihanmumbai Municipal Corporation (BMC) in Marathi and the Municipal Corporation of Greater Mumbai(MCGM) in English. Navi Mumbai is maintained by the Navi Mumbai Municipal Corporation(NMMC). BMC is India's richest municipal corporation and the method they use for calculating the tax is the capital value method. It was constituted under the Bombay Municipal Corporation Act, 1888. The process for paying taxes has been made simple and can be completed online.
Your home, a building or a store are all examples of properties. A parking lot is also an example of a property. There is no distinction between a house or a residential property in the Income Tax Act. All properties are taxed as income from house properties under the Income Tax Act.Exemptions from payment of Property Tax
- The residential properties which have an area of up to 500 square feet are exempt from paying property tax.
- The properties which are used for charitable or religious purposes are also exempt.
- In case the area of the property ranges between 500-700 square feet, a concession of 60% is provided to the taxpayer.
- Properties which belong to a diplomatic/consular mission of a foreign state are exempt from property tax.
In general, all religious places and charitable institutes are exempt from paying property tax. The motto behind this is to encourage the presence of these institutions in society.
Computation of Property Tax
The property tax is a percentage of the capital value of the property
Property tax = tax rate * capital value
The capital value = Rate of base value * total carpet area/area of land in case of vacant land * building type * age factor * usage factor * floor factor
The base value is based on the ready reckoner which is used by the revenue department.
The BMC property tax can be calculated online using the details like carpet area, location usage etc.
Steps for payment of Tax
The online portal is accessible to all taxpayers.
The online payment of tax option is to be chosen for the same.
Each property has a number and the number has to be mentioned to either pay tax online or view or print the earlier paid tax receipts.
The BMC also has a citizen logging portal which can be used to log in for payment of tax.
The property number can be searched after filling in the ward number and searching the address of the building
Once all the details are entered, the pay tax option is displayed and after clicking on accept,
The total outstanding tax liability is displayed for the taxpayer.
The payment can be made based on the FIFO method and the taxpayer can choose the amount to be paid.
BMC websites support only online payments and bank transfers. Thus payments can be made using any of these methods.
The receipt can be saved by the taxpayer and used for any further requirements in future.
Any receipt can be printed in the future using the receipts section of the account.
Due Date and Penalty
The due date for payment of property tax is 30th June every year. The tax has to be paid once every year.
A charge or penalty of 2% is charged on non-payment of the tax.
Property Tax Rates
| Bungalows and RCC | 1 unit |
| construction | 0.60 unit |
| Other than RCC | 0.50 unit |
| Under construction or vacant | - |
| land | - |
Old System v/s New System
The old system of taxation was rate-based where the property tax was fixed based on the rent collected from a particular property every year.
The BMC however earned a very low revenue as per this system as the artificially low charges were given by the Rent Control Board
The new system is based on the value depending upon the ready reckoner rate as given by the corporation.
This rate helps to evaluate a property based on various parameters.
The BMC calculates and revises the rates annually to have a realistic value of the same.
Paying Property Tax in Navi Mumbai
The authority for payment of property tax in Navi Mumbai is the Navi Mumbai Municipal Corporation (NMMC). This authority also has an online system where taxes can be paid, bills can be paid and the receipts for the same can be availed. The system can generate bills, calculate taxes and also process payments in a very short time.
NMMC has nine zones under it. They are Airoli, Belapur, Dahisar Mori, Digha, Ghansoli, Nerul, KOparkahirane, Turbhe and Vashi.
The taxpayers falling under these zones have to pay tax to the Navi Mumbai Municipal Corporation.
The website provided by NMMC is very user friendly and has a lot of options such as choosing the language you are comfortable in and also a birdseye view of the whole site.
Steps to pay Online Tax to NMMC
- Visit the official website of NMMC
- The payment page has an option of entering the property code before you pay the tax.
- After entering the property code, all the personal details such as the mobile number, address, ID proof etc. have to be entered.
- Once all the details are filled in, the option to pay tax online can be selected.
- The payment redirection page will offer you options to choose the payment method for the payment of tax.
- A receipt ID and information will be given once the tax is paid by the taxpayer.
- A copy of the receipt has to be kept for the record by the assessee.
Calculation of Property Tax for NMMC
The property tax for NMMC is also calculated based on the value of the property. The other factors which affect the tax are the type of property, annual rent and also additions and extensions of the property.
For residential purposes, it is 38.7% of the relatable value of property
For non-residential purposes, it is 68.33% of the relatable value of property
Relatable value can be calculated after arriving at the annual value and deducting 10% of statutory deductions.
FAQs
1. What does MCGM stand for?
MCGM refers to Municipal Corporation of Greater Mumbai
2. Can property tax be paid online?
Yes, property tax can be paid online by visiting the official sites of Municipal Corporations.
3. How to search for property codes on MCGM website?
The property code can be found after entering the ward number and address by the assessee.