Property tax is a recurring charge imposed on all property owners annually. It is a significant source of municipal finance that helps in maintaining local government services. Every individual owning a tangible real estate property in Mumbai are liable to pay Mumbai property tax to the Municipal Corporation of Greater Mumbai (MCGM).
MCMG is responsible for administering and collecting property tax in Mumbai. On the other hand, Navi Mumbai Municipal Corporation (NMMC) collects taxes at Navi Mumbai.
A Step by Step Guide on Paying Mumbai Property Tax Online
With rapid digitisation, paying property tax in Mumbai has become convenient. Here is the step-by-step guide for completing this process online:
- Firstly, individuals must log in to BMC online portal
- Head to the ‘Online services’ section and select ‘Pay Property Tax’
- Submit the unique property number. One can find the property account number on the tax receipt
- After entering the property number, select from the three options that will be displayed on the screen: outstanding bill payments, view receipts, and make payment
- Select the ‘Make payment’ option complete tax payment
Real estate owners can also initiate Mumbai property tax payment from MCMG (Municipal Corporation of Greater Mumbai) online portal following these steps:
- Log in to MCMG citizen portal with the property account number. (If an individual is unaware of an account number, enter property name, address, ward etc. instead)
- Now validate real estate details and click ‘Accept’
- The payable tax amount will appear on the screen. Enter the tax amount individuals want to pay
- Finally, click on ‘Online payment’ option and get redirected to the payment page
- Initiate the payment via a preferred mode of payment
After paying property tax, keep a property tax receipt for future reference. The receipt acts as evidence of tax payment and serves as proof of ownership as well.
Similarly, property owners from Navi Mumbai will have to initiate payment for property tax from NMMC (Navi Mumbai Municipal Corporation) portal using property code.
Moreover, civic authority allows homeowners to make property tax payments offline. They will have to head to the office of the Assistant Revenue officer or BMC help centres. Furthermore, one can go to the citizen facilitation centre to pay house tax in Mumbai.
Calculation of Mumbai property tax
Mumbai property tax calculation is dependent on various factors like property location and type, construction age, construction type (single floor, multi-storey etc.), carpet area, FSI (Floor Space Index) etc.
Here is the formula for evaluating property tax in Mumbai:
- Property tax= Tax rate X Capital value
Here, Carpet Value = Weight for the age of building X Weight for the kind of construction X Total capital area X Market value of the asset.
Property’s market worth is dependent on the ready reckoner rate set by the State Government.
Clearing property tax is vital for availing a credit option like a loan against property. Hence, individuals from Mumbai seeking to avail loan against property should clear the tax payment to receive approval from the lender. Moreover, making property tax payments ensures lenders that the property is free from legal disputes.
A property devoid of legal issues and is under regular taxation helps borrowers fetch a high quantum loan amount at an affordable interest rate. The sanctioned amount can be used to meet an array of expenses like funding a child’s education, managing wedding expenses, medical emergencies etc. However, borrowers must qualify for a loan against property by meeting simple eligibility criteria.
All Important Information Related to Property Tax
A property tax receipt is a vital document required while availing a loan against property. It confirms the lender regarding legal ownership. However, borrowers should also know about the list of documents needed to apply for a loan against property.
Apart from keeping the tax paper handy, borrowers should also look into the pre-approved offers extended by prominent financial institutions on financial products like loans against property, home loans etc. These offers expedite and streamline the loan application procedure and save time. Intending borrowers can check their pre-approved offers by submitting their names and contact details.
To sum up, Mumbai tax constitutes a major part of state revenue used to upkeep civic amenities. Property owners have to pay the amount to enhance the functioning of the local community.
To simplify and accelerate the tax collection process, the Mumbai Municipal Corporation (Amendment) Act came into effect in 2016. The owners of residential properties in Mumbai are liable to pay KMC property tax every year.
Here is the procedure of paying property tax in Mumbai in detail.
Online calculation of KMC property tax
Authorities passed the Unit Area Assessment (UAA) in 2017 to remove ambiguity and subjectivity present in the previous system. In this system, owners can calculate the KMC tax themselves.
However, individuals must keep in mind a few points about the Unit Area Assessment.
- There are around 6 lakh taxpayers that fall under this system.
- According to the UAA system, Mumbai is home to 293 blocks, and 7 categories ranging from categories A to G. This categorisation depends on the property’s market value, infrastructure and facilities.
- Every category will have an assigned Base Unit Area Value (BUAV). Here, the BUAV is the lowest for category G and highest for category A.
Under category G, the slum areas of Mumbai have been added. This has been done to reduce tax burdens on economically weaker section people.
Formula to calculate property tax
Authorities calculate the KMC property tax according to the following formula.
Annual Tax= Area of land x BUAV x Occupancy MF value x Rate of Tax (Inclusive of HB Tax) x Structure MF value x Usage MF value x Location MF value
Besides knowing the formula to calculate the KMC house tax, individuals must also know the in-depth process to pay it.
Steps to follow to make a property tax payment online
- Taxpayers need to go to the KMC official website.
- Next, individuals need to navigate to ‘online services’.
- Then, individuals need to select ‘assessment collection’.
- Individuals need to select the ‘make online payment’ option.
- Individuals will then get a few options such as:
- Current PD: Select this option for periodic demand for bills.
- Individuals can select ‘Outstanding LOI: Letter for Arrears’, and it stands for unpaid bills.
- Fresh Supplementary: Individuals can select this option for bills, which have undergone changes.
- Once individuals have selected a relevant option, they need to provide their assessee number, email ID and contact number.
- Next, individuals need to click on the ‘pay’ option.
- The final step for individuals is to make KMC online tax payment. After payment, they can get a copy of their e-receipt or print it.
Individuals residing in Mumbai must timely pay KMC tax online. Not paying the taxes timely would result in legal actions and harassment. Individuals looking forward to availing a loan against property should also clear their taxes. Not doing so would decrease the chances of their loan approval.
Individuals can secure a loan against property to meet multiple financial requirements. However, before getting LAP, individuals must be aware of the charges and interest rates of their LAP. They should be aware of the factors that affect their interest rate for their LAP.
Apart from that, individuals must know the eligibility criteria needed for availing a loan against property. Knowing the eligibility criteria would make it easy for borrowers to understand how much loan they can acquire.
Several financial institutions provide pre-approved offers to their existing and new customers. These offers are available on various secured and unsecured loans. Borrowers can quickly check their pre-approved offers by entering their names and contact details.
That is all for individuals residing in Mumbai who want to pay KMC tax. They can follow the steps given above to do the needful.
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