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May 2018

All you need to know about BMC’s property tax calculator

All you need to know about BMC’s property tax calculator

As the country is going digital, the municipal corporations and the government have launched some online calculators for the property tax in India which allows them to make the payments online as well.
Also, the property taxes can be paid online by making use of the website of the local municipal corporation. For example, the property owners in Mumbai can go to the portal of the Brihanmumbai Municipal Corporation, www.mcgm.gov.in for calculating and paying taxes online.
Here is all you need to know about the online processes of the property tax calculation and payment-
What is property tax?
Basically, property tax is the fund collected as tax from owners of property by municipal corporations which is used for development of locality like maintenance of roads, provision of the civic facilities such as drainage systems, street lighting, parks, etc. The tax is levied on the annual or the half-annual basis and is paid to local Municipal Corporation. The property tax may vary from one location to another.
Property tax calculation in Mumbai
Property tax calculation in Mumbai was previously done on rate-based value system wherein the charges were unwavering by the amount of rent collected from the provided property in a year. This proved to be the loss for Municipal Corporation owing to artificially low taxes of property assessment and tax calculation system which basically depends on stamp duty ready-reckoner rate which is issued by the government to estimation property value based on the different parameters. The rate is revised every year which helps BMC to arrive at the real value.
As per the BMC’s proposal passed on 7th July 2017, buildings with the carpet area up to 500 square feet are exempted from the property taxes. Also, it proposes a concession of 60% for properties with the area between 500 to 700 square feet. If it is implemented by the civic commissioner and Maharashtra government, the owners of the property will be entitled to the advantages with the effect from 2015 to 2020.
A quick guide to the calculation of property tax
The parameters considered for the calculation of property tax including property location, the occupancy states, the year of construction, property types, amenities provided, types of construction, carpet area and floor space.
The formulas are as follows-
Property tax= built-up area x base value x age factor x category of use x building type x floor factor
The capital value of the property is obtained as follows-
Capital value= total carpet area x market value of property x weight for age of building x weight for construction
The value of the market is ascertained by Ready Reckoner (RR). This RR is fixed by the state government and found out by compiling fair value rates of properties.
Weights for user category
• 1 unit for housing units and charitable institutions
• 2 units for factories and industries
• 3 units for commercial properties viz. offices and shops
• 4 units for hotels and similar establishments
Weights for construction types, in units
• 0.50 units for under-construction or vacant land
• units for structures other than RRC
• 1 unit for RCC construction and bungalows
Weights for the age of the property
• 0.80 units for developed properties before 1945
• 0.90 units for developed properties between 1945 & 1985
• 1 unit for developed properties after 1985
As per the BMC website, the weights can change without any advance notice and thus, it is recommended highly that people refer to the BMC website before manually calculating property tax.
Facts about online payment of property taxes
• The payments are done through the National Electronic Funds Transfer for banks, net banking or using the debit cards and credit cards.
• While making the online payment, the owner of property should have these details ready with her or him- Property Account Number, classification of property, annual value of property, zonal classification, built-up area, property dimensions, number of floors, exemptions, utility bills, etc.
• Property Account Number can be found out by using the Property Account Number Search feature on the portal
• Outstanding dues if any, records of the offline payments can be tracked using the portal
• Property tax payment receipt is received after making payments as well as serves not only the proof of payments but proof property ownership
• Details of property tax bill can cross-checked with details providing in the portal. Any deviation will rectify by ward office


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