Delving into the Tax Code: An In-Depth Guide to Maharashtra Property Tax

Achieving financial stability is a significant milestone, and investing in real estate can help you get there. Owning a property not only saves you from rental expenses but also creates an asset that can appreciate in value over time. However, it is important to remember that regular maintenance and repair costs should be factored into the budget, as well as timely payment of property taxes. Fortunately, the state government has introduced a convenient digital payment system that enables homeowners to pay their Maharashtra property taxes online without any hassle. Here is a handy guide to understanding property taxes and how to pay them online in Maharashtra.

What is property tax?

Property tax is imposed by the local municipal corporation where the property is located. For example, if your flat or apartment is located in Mumbai, the property tax is payable to the Municipal Corporation of Greater Mumbai (MCGM). Similarly, if the property is located in Pune, the tax is levied by the Pune Municipal Corporation. Owners of all properties and open lands within the municipal corporation limits are liable to pay property tax.

The revenue collected by the local government or municipal corporation as property tax is ploughed back into the infrastructural development of the city in the form of repairs and maintenance of roads, providing water connections and drainage systems, constructing parks, etc.

How to pay property tax in Maharashtra?

Property tax can be paid online through the websites of the respective municipal corporations. For example, if you own a property in Mumbai, you can log on to the MCGM portal at https://ptaxportal.mcgm.gov.in/CitizenPortal/#/login and pay using the assessment number on your property tax bill. If your property is in Pune, you can log on to the https://www.pmc.gov.in/en/ptax portal to make the payment. You will need to register on the municipal corporation website with your mobile number and email and can make the payment through any of the digital banking systems. In smaller towns of the state, payment can also be made offline at the corporation office through cash, cheque, and demand draft.

What is property tax assessment based on?

Property tax must be paid bi-annually or twice a year. When you buy a new property, you must apply for an assessment. The Maharashtra property tax assessment is based on the following factors -

• Type of property - residential, commercial, land, industrial, or mixed property
• Carpet area of the property
• Value of property as per the Ready Reckoner rate
• Type of construction

Documents required for a new assessment application –

• Documents proving ownership, such as the sale deed, Index II, city survey extract, 7-12 extract, etc.
• Approved Plan
• Building completion certificate
• Occupancy certificate (flat or apartment) or building permission certificate (individual house or building)

The municipal corporations in Maharashtra do not charge for the initial assessment of a property, but the application must be made within 15 days of completion of construction.  

If the property is resold or inherited, the new owner must make an application for transfer of property tax as well. The application must be accompanied by relevant documents such as a will or sale deed.

Maharashtra property tax FAQ

• Who pays property tax, and what properties are taxed? 

Property tax is imposed on various types of properties, such as residential, commercial, and industrial properties, as well as open land. If you own any real estate properties within the municipal corporation limits, you are liable to pay taxes.

• Is the property tax based on carpet area or built-up area?

The assessment of property tax is based on the carpet area of the property. Previously, residential societies were responsible for the payment of property tax, but now it is mandatory for every individual property owner to pay property tax for their own house, flat, apartment, or land.

• How can a property owner get the property tax bill?

Property tax bills are sent by regular post. They can also be downloaded by logging on to the corporation's website. The tax payment receipt can be downloaded through the website. Delay to pay the bill on time will attract a fine. Any grievance related to the assessment amount can be logged with the municipal corporation in writing or through the website.

• Are any properties exempt from property tax?

Places of worship, public spaces, and properties belonging to charitable trusts are exempt from property tax.

• Can the property tax amount change?

Municipal corporations undertake periodic reassessment of property taxes. Any remodelling or addition to the house or building can also attract additional tax.