House Tax Payment Deadline Alerts in Mumbai: Staying on Top of Your Financial Obligations

In Mumbai, Residential properties, be they tenanted or owned and utilised by the owner, must pay property tax through the BMC portal. With legalities also come imperative timelines, which must be adhered to since failure to comply attracts heavy penalties. 

This blog will focus on imperative information surrounding house tax payments in Mumbai. Additionally, we will also look into some FAQs on the same. 

What is MCGM Property Tax? 

Homeowners in Mumbai are liable to pay a property tax annually. In Mumbai, this is governed by the MCGM. Property tax is to be paid by all individuals who are legal owners of properties in Mumbai. This article will focus on the property tax applicable to residential properties. 

This property tax is non-uniform and varies from location to location. 

This tax is calculated by means of the Capital Value System (CVS). This method calculates the property tax as a percentage of the property's total market value. This market value is determined by the Maharashtra State Government and depends on the property's location. It is revised annually and then published on the website.  

Mode of house tax payment in Mumbai

The civic organisation in Mumbai, viz., the MCGM, provides home15-digit owners with both online and offline options for payment of property tax. 

The Offline Way

To traverse this tax payment route, you must visit the local Municipal Council Office. The requisites for the same are your 15-digit Property/ Account number. This number can be found mentioned on all your property tax receipts. 

The Online Way

First, register yourself on the BMC Portal if you haven't already. Visit the website and click the register button to begin the registration process. To successfully do the same, you need to enter property details and your name and choose a username and password. Once you are done filling in this information, you will receive a mail from the BMC. 

Second, it is time to use the online property tax calculator on the BMC website. Fill in the necessary details such as property details, area, building use, and also age of the built mass. Ensure you enter all of this information carefully since this helps calculate the property tax. 

Third, generate the property tax bill. Log on to your account by entering your username and password and then click on the generated tab. Apart from entering property details, you will also have to enter the property tax amount, and once you are done entering the same, the property tax bill will be generated. 

Fourth, make the payment. To do the same, log on to your BMC account and click the 'Pay Property Tax' option. This will lead you to the payment gateway, where you can choose the payment mode best suited to you. Once the price is successful, you will receive a confirmation message from the BMC. 

Fifth, and also the most crucial step to conclude this procedure- you must now download the property tax payment receipt. 

From the two routes you may take to successfully pay property tax, it is advisable to opt for the online route considering the benefits such as standing in queues, stepping out and spending time and money on the commute, eliminating the chance of human error! 

Penalties following late payment of property tax 

It must be noted that the last date for house tax payment in Mumbai is the 30th of June of every year. Until 2013, this deadline was to be 31st March. However, following many complaints and opinions on the newly amended property tax system, the civic body had decided to extend the date to 30th June. Failing to abide by this deadline leads to a penalty of 2% per month on the unpaid amount. Hence, one must be extra careful of these deadlines to avoid paying additional charges. 

Issuance of Legal Notice to Parties issuing dud Cheques

To get away with paying property tax, the BMC encounters multiple cheques that bounce. The BMC previously sent legal notices to defaulters who had issued cheques during financial year 22-23. 

Who are exempt from the payment of property tax in Mumbai? 

Property owners whose property size with areas up to 500 sq. ft. are exempt from the payment of property tax. 

Final Word 

All property owners who own properties with areas more than 500 sq. ft. must make house tax payment in Mumbai before the 30th of June of every year. Failure to do so attracts penalties. The BMC offers two ways to do so: the online and offline methods. Considering the advantages, opting for the online route whenever possible is advisable.