All You Need To Know BMC’s Property Tax Calculator
As the nation is going digital, the government and municipal corporations have now launched online calculators for property tax in India and allowing them to make payments online, too.
Property tax can be paid online by accessing the website of the local municipal corporation. For instance, property owners in Mumbai can go to the portal of the Brihanmumbai Municipal Corporation (BMC), www.mcgm.gov.in, for calculating and then paying the tax online.
MakaaniQ tells you all about the online processes of property tax calculation and payment:
What is property tax?
Property tax is the fund collected as tax, from property owners by municipal corporations, which is used for the development of the locality such as maintenance of roads and provision of civic facilities like street lighting, drainage systems, parks, etc. The tax is levied on an annual or half-annual basis and is paid to the local municipal corporation. The property tax may vary from location to location.
Property tax calculation in Mumbai
Property tax calculation in Mumbai was earlier done on the rate-based value system wherein the charges were determined by the amount of rent collected from a given property in a year. This proved to be a loss for the municipal corporation owing to the artificially low property taxes issued by the Rent Control Board. The BMC has now adopted a capital value-based property assessment and tax calculation system which depends on the stamp duty ready-reckoner rate issued by the government to estimate the property value based on different parameters. This rate is revised annually which helps BMC to arrive at a realistic value.
According to the BMC’s proposal passed on July 7, 2017, buildings with a carpet area of up to 500 sqft are exempted from property taxes. It also proposes a concession of 60 per cent for properties with an area between 500 sqft and 700 sqft. If implemented by the civic commissioner and the Maharashtra government, the property owners will be entitled for this benefit with effect from 2015 to 2020.
Quick guide on property tax calculation
The parameters considered for property tax calculation include the location of the property, the occupancy status (occupied by self or tenant), the property type, the amenities provided, the year of construction, the type of construction, the Floor Space Index and the carpet area. The formula is given below:
Property Tax = Base Value × Built-Up Area × Age Factor × Type of Building × Category of Use × Floor Factor
The capital value of your property is obtained as follows:
Capital value = Market value of the property x total carpet area x weight for construction type x weight for age of the building
The market value is ascertained by the Ready Reckoner (RR). The RR is fixed by the state government and is found out by compiling the fair value prices for properties.
Weights for ‘construction type’, in units
*1 unit for Bungalows and RCC construction
*0.60 units for structures other than RCC (like semi-permanent and chawls)
*0.50 units for under-construction or vacant land
Weights for ‘user category’
*4 units for hotels and similar establishments
*3 units for commercial properties viz. shops and offices
*2 units for industries and factories
*1 unit for residential units and charitable institutions
Weights for the age of property
*0.80 units for properties developed before 1945
*0.90 units for properties developed between 1945 and 1985
*1 unit for properties developed after 1985
According to the BMC website, the weights can change without any prior notice, and so, it is highly recommended that one refers the BMC website before manually calculating the property tax.
Facts about online payment of property taxes
*The payments are done through National Electronic Funds Transfer (NEFT) from banks, net banking or using credit cards and debit cards.
*While making online payment, a property owner should have these details ready with him or her - the Property Account Number (mentioned in the Property Tax Bill), the annual value of the property, classification of the property (viz. residential or non-residential), the zonal classification, the property dimensions and built-up area, the number of floors, the utility bills, the exemptions, etc.
*The Property Account Number can be found out using the Property Account Number Search feature on the portal.
*Details of the property tax bill can be cross-checked with the details given in the portal. Any deviation will be rectified by the ward office.
*Outstanding dues if an, as well as records of offline payments,s can also be tracked using the portal.
*The property tax payment receipt is received after making the payment and serves not only as a proof of payment but also a proof of property ownership.
Websites to pay property tax online in Mumbai: