Property Tax in Mumbai

Last Updated at: October 22, 2019
Property Tax

Property tax is charged in Mumbai based on the construction of a property, its location, age of construction and carpet area. The Brihanmumbai Municipal Corporation (BMC) receives nearly Rs. 3,000 crore by collecting property tax from its residents. Earlier, built up area of a property was considered as one of the key component of measuring property value in Mumbai. But, recently, the BMC revised the parameter of calculating property tax and includes carpet area as one of the key components of calculating your property tax.

This new initiative taken the BMC is expected to increase the property tax collection in Mumbai by 14.5% in 2015-16 form it previous estimation of 27%. This new rule will remain effective for the coming next five years with effect from April 1, 2015. As per the new tax rules, there will be a 40% increase in property tax rates in Mumbai, both on residential properties having less than 500 square feet and constructed before 31st March, 2015 as well as on commercial properties. The word ‘property’ in this context refers to all tangible real estate under the ownership of an individual and includes houses, office buildings and premises rented to third parties. Property tax, as a concept has been around for centuries and is acknowledged across the globe, with records of farmers and peasants paying tax on their properties even in the middle ages.

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Classification of Property Tax

Property is classified into four categories, which help the government estimate tax based on certain criteria. The different property divisions are mentioned below.

1. Land–in its most basic form, without any construction or improvement.
2. Improvements made to land–this includes immovable manmade creations like buildings and warehouses.
3. Personal property–this includes movable man-made objects such as cranes, cars or buses.
4. Intangible property.

How to Pay Property Tax

In Mumbai, you can calculate your property tax online by visiting the official web site of Municipal Corporation of Greater Mumbai. Once you click on the “Property Tax (New)” box, it will redirect you to the calculator which will help you calculate your property tax instantly. What you have to do is to put the following information in the calculator – ward no, zone, sub-zone, occupancy type (self-occupied/ tenements), user main category (commercial, land, residential and industrial ), date of effect, user sub-category, floor, floor sub-type (mezzanine, loft and attic ), year of construction, nature and type of building (luxurious, kuccha structure etc.), age of building, tax code, floor space index (FSI) and whether water connection available or not. Once you put all the above–mentioned details, the calculator will immediately reveal the amount you need to pay as property tax in Mumbai. Interest is charged on property tax, if the property tax remains unpaid or pending for a given period of time.

Frequently Asked Questions

when should i get my income tax return

The taxpayers can view status of refund 10 days after their refund has sent. You have to type the PAN number and select the assessment year to check. You need to finish e-filing to get faster income tax return. Learn More about Income Tax filing

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In February 2018, the government has classified businesses with a turnover between Rs. 75 crores and Rs. 250 crores as MSME (Micro, Small and Medium Enterprise). Learn more about SSI/ MSME Registration