MCGM Property Tax: Overview

MCGM is also known as Brihanmumbai Municipal Corporation or BMC. The Municipal Corporation of Greater Mumbai collects property tax from its citizens every year. Property tax is one of the main sources of revenue for the Government. Hence, anyone owning property or a piece of land in Mumbai will be liable to pay the tax levied by MCGM. MCGM property tax is utilised to maintain and develop localities with better roads, sewage system, beautification of parks, etc.

Property tax payers of Mumbai can visit the official website of the corporation and pay their taxes online. They can also download a dedicated app to stay updated about the latest news and notifications from MCGM.

The Municipal of Greater Mumbai recorded a historical collection of property tax payment in 2021. As per officials, from April 2020 to March 2021, they have collected property tax worth Rs.540.28 crore only from K-east wards (Andheri, Jogeshwari, etc.)

However, it is essential for every property owner of Mumbai to know the process of paying this tax to avoid penalties.

Steps to Pay MCGM/BMC Property Tax Online

Citizens of Mumbai can pay MCGM property tax online and offline. Following is the online process to pay MCGM property tax.

  • Step 1: Visit the official MCGM property tax payment portal.

  • Step 2: Fill up an online KYC form if you have not yet. Enter Property Account number and authenticate to log in to the portal.

  • Step 3: After entering this portal, check any outstanding balance, view ‘Receipts’ or ‘Make Payment’ online.

  • Step 4: If you do not know your Property Account Number, go to ‘Search’ after entering ward name, property address, etc.

  • Step 5: After checking the due tax, enter the amount you want to pay (payment adjustment follows FIFO method).

  • Step 6: Once the payment is made, MCGM property tax bill download is mandatory. Remember that a property tax receipt is proof of payment and also proof of ownership of a property. You can also go to ‘Online Services’ and download it from the ‘Receipts’ section.

Alternatively, you can also pay MCGM property tax offline at Citizen Facilitation Centres located at every ward or Assistant Revenue Officer's office or BMC Help Centre.

BMC also announced that property taxpayers can now get their MCGM property tax bill delivered to their registered email ID. However, to avail this facility, they need to complete KYC formalities first. Besides tax, citizens will also get other news updates from MCGM through email and SMS.

The following table contains some basic information about MCGM.

Property tax summary Details
Name Municipal Corporation of Greater Mumbai
Known as MCGM or BMC
Area covered (sq. kilometres) 603
City name Mumbai
State name Maharashtra
Total population (approx.) 2.2 crore
Official website https://ptaxportal.mcgm.gov.in/CitizenPortal/#/login

How to Calculate MCGM Property Tax Online?

MCGM uses Capital Value System (CVS) to determine MCGM property tax for each taxpayer. This Capital Value again depends on market value of the concerned property. Following is the formula to derive capital value.

Capital value = Total carpet area * Property’s market value * Construction type weightage * Property age weightage

The table below contains the weightage as per ‘construction type.’

Property type Unit
RCC constructions or bungalows 1
Chawls or semi-permanent 0.60
Vacant land or under-construction 0.50

Similarly, “property age” carries the following weightage.

Year of construction Unit
Before 1945 0.80
Between 1945 and 1985 0.90
After 1985 1

After getting the capital value of properties, MCGM property tax is calculated using this formula below.

MCMG Property Tax = Capital value of property * Applicable rate of property tax * User category weightage

For instance, 4 units for properties like hotels and similar businesses, 1 unit for charitable or residential properties and likes.

However, to simplify the process, MCGM also offers an online property tax calculator. Following are the steps to use this calculator -

  • Step 1: Go to Citizen Portal Services of MCGM

  • Step 2: Enter details such as carpet area, ward, zone, Tax code, FSI, use main category, etc. and click on ‘Calculate’

Within seconds you can view the BMC property tax details before paying online. If you fail to pay annual property tax, a certain interest will be accrued on unpaid amount plus a penalty.

Rebates on MCGM House Tax

In 2020, MCGM offered a rebate of 5% on outstanding balance and penalties. However, they also proposed a complete waiver of interest and penalties. If this plan is approved in the general body meeting, almost 2.83 lakh taxpayers are expected to reap the benefits.

However, in general, property taxpayers can also avoid paying penalties by taking authorisation from the Superintendent of their ward. Remember that authorisation is valid only for the same day. After that, citizens have to make MCGM property tax payment online as per FIFO system.

Exemption of MCGM Tax Payments

MCGM also offers some property tax exemptions, which started in January 2019. Following properties are exempted from paying MCGM property tax in Mumbai.

  • Properties measuring less than 500 sq. ft.

  • Properties used for charity and public worship.

  • Establishments belonging to Consular Mission of other states, specified by Government.

  • 60% concession on properties measuring from 500 to 700 sq. feet.

Primarily, the exemptions and concession were proposed only on general components of MCGM property tax. However, Mumbai’s civic body is planning to reintroduce tax on small units below 500 sq. feet, as well, to address revenue loss.

These are the most important pointers that residents of Mumbai need to know about property tax. It is also crucial for them to clear MCGM property tax dues before the last date - 31st March.

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