LegalKart Editor

LegalKart Editor

LegalKart has an inhouse team of editors who research on the most relevant topics and write articles which can help understand the issue in a simple and easy manner. LegalKart aims to simplify law and make legal accessible to every Indian.

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Brihanmumbai Municipal Corporation (BMC) property tax rates and payment process
Tax

Brihanmumbai Municipal Corporation (BMC) property tax rates and payment process

We have covered several important cities of the country on the important subject of property tax and its payment process. In this post, we share details about property tax for the city of Mumbai, which is also known as the financial capital of India.

 

The local municipal corporation for the city of Mumbai is called as the Brihanmumbai Municipal Corporation (BMC). This body has also been setup by the state government of Maharashtra and is entrusted with the collection of property tax (also known as house tax or municipal tax) from various types of property owners in the Mumbai Metropolitan Region (MMR). The BMC operates in a similar fashion to several other municipal corporations of the Maharashtra state and utilises the tax revenue realised from property owners for extending various civic amenities to the local city residents. Some of the services include development and maintenance of public spaces, parks, sanitation, electrification, drainage management, etc.

 

Besides others, several important points that property owners need to know include:

 

Property Tax Formula used by the BMC/MCGM

 

The BMC/MCGM uses the capital value method for the purpose of property tax calculations. The tax amount is calculated based on the stamp duty rates prevailing in Mumbai. Several factors that the BMC/MCGM considers for calculating the property tax liability of home owners in Mumbai include:

  • location of property – urban, semi-urban, rural, etc.
  • type of property type – residential, commercial or land, etc.
  • type of amenities provided to property owners
  • age of property
  • type of construction type – multi-story, single floor or independent house, etc.
  • occupation status
  • carpet area
  • floor factor


The formula used by BMC for calculating the property tax is as below:

  • Property Tax = Tax Rate X (Base Value Rate / Market Value of Property) X Built-up Area X Age Factor X Building Type X Category of Use X Floor Factor

 

Note: The MCGM (erstwhile, The BMC) strictly advises the property owners to calculate property tax liability correctly. In case of any errors detected by the municipal corporation can lead to penalties as per the provisions of law.

 

 

Modes of Property Tax payment provided by MCGM/BMC

 

MCGM has the following options using with a property owner can make the tax payment:

 

  • Option 1 – Online property tax payment as a guest (without login)
    • Visit the official website of MCGM/BMC
    • Go to the Online Services section
    • Select Pay Property Tax option
    • Enter Property Account Number as asked on the page
    • Click on Make payment option
    • Select your preferred choice of payment – debit card, credit card or net banking
    • Make the payment and note the transaction details carefully
    • Download the payment receipt and save it properly for future use

 

  • Option 2 – Online property tax payment through citizen login portal of MCGM/BMC (as a registered user)
    • Visit the official portal of MCGM/BMC
    • Click on Property Tax (New) button/option
    • Use Property Account Number and CAPTCH to login to the portal
    • Enter the required property related information as asked on the webpage to proceed further. Website shows pending dues, if any.
    • Verify the details and enter the property tax amount for payment
    • Click on Make payment option
    • Select your preferred choice of payment – debit card, credit card or net banking
    • Make the payment and note the transaction details carefully
    • Download the payment receipt and save it properly for future use

 

  • Option 3 – Offline payment mode
    • In this method, the property tax payment can visit the local BMC/MCGM office (also, called as BMC Help Centres).
    • Take the Property Tax payment form from the designated counter
    • Fill all the details properly in the form including all the property and ownership details
    • Attach the payment instrument – cheque or demand draft. Payment can also be made via cash
    • Handover the duly filled form and payment instrument to the dealing clerk or assistant at the designated counter
    • Collect the payment receipt and save it carefully for future reference

 

Need of the Property Tax Adviser or Consultant

 

We have been discussing the importance of a property tax consultant in all our previous posts. As explained previously, property tax calculations are complex and as per guidelines stated in the law it is the responsibility of the property owner to file the property or house tax properly. Any incorrect tax filing is viewed very seriously by the taxation authorities. Hence, it becomes very necessary to take help from a qualified property tax consultant for this purpose. The property tax adviser will not only calculate the tax liability properly and correctly but will also help the owner in filing it properly and as per the taxation guidelines.

 

You should consult a competent property lawyer right away on the LegalKart platform.

Pune Municipal Corporation (PMC) tax rates and payment process
Tax

Pune Municipal Corporation (PMC) tax rates and payment process

In continuation to the property tax series, we are sharing this article on property tax related details for the city of Pune.

 

The local municipal corporation for the city of Pune is called as the Pune Municipal Corporation (PMC). This body has been setup under the state government of Maharashtra and it is entrusted with the collection of property tax from various types of property owners. As done by any other municipal corporation in India, the PMC also utilises the revenue realised from property tax collection for providing various civic services to the local city residents. Some of the services include development and maintenance of public spaces, parks, sanitation, electrification, drainage management, etc.

 

Some of the most important points all property owners in Pune must know are as below:

  • The official website of PMC is https://www.pmc.gov.in/en/ptax
  • Payment of property tax or house tax is mandatory as per law
  • Property Tax is to be paid by the owner on annual basis
  • Property Tax is applicable on residential as well as commercial properties irrespective of whether they are occupied or vacant
  • Only PMC is authorised to collect property taxes in the city of Pune
  • Tax rate in Pune city may be based on the following factors:
    • location of property – rural, urban, semi-urban, etc.
    • type of property – residential or commercial
    • carpet area
    • age of property
    • plinth area

 

Note: Owners are suggested to file property tax online on the official website of the PMC only. Any other website promising tax rebates or concessions may be fake and illegal.

 

What is the formula used by PMC to calculate the property tax?

 

PMC calculates the property tax based on capital value-based method wherein tax assessment is done on carpet area. The formula used by PMC is as below:

  • Property Tax = Base Property Value X Built-up area of Property X Usage Category X Building Type X Age Factor X Floor Factor X Tax Rate

 

It is always prudent to consult a property tax adviser for getting proper tax calculations done. Also, property taxation rates may vary from one property to another in the city of Pune and it is always better to calculate property tax correctly before filing the same with PMC. Any errors detected by the PMC is likely to be considered as an attempt of property tax evasions by the authorities leading to tax notices and penalties.

 

How can a property owner(s) make property tax payments to the PMC?

 

As done by many municipal corporations in India, the Pune Municipal Corporation (PMC) also offers two modes for making the property tax payment:

  • Offline mode
  • Online mode

 

 

Offline Mode of Payment

 

In this mode, the property owner needs to:

  • Visit local office of the PMC with property details.
  • Take prescribed form from the tax payment counter and fill the property and owner details correctly.
  • Submit duly filled form to the payment processing clerk or representative at the designated payment counter.
  • Attach the payment instrument (cheque or demand draft) along with the form. Option of payment via cash may also be available.
  • On receiving the form and payment instrument, the processing clerk issues a tax payment receipt to the owner/payer that is valid subject to clearance of the payment instrument.

 

Online Mode of Payment

 

In this mode, the property owner needs to:

  • Visit the official website of PMC – https://www.pmc.gov.in/en/ptax
  • From the top menu, click on Online Services option
  • From list displayed, go to Pay Property Tax option under Property Tax Related option
  • Once you click, a new page opens that asks the owner to fill details like:
    • Property Type
    • Section ID
    • Peth ID
    • Account No.
  • Once the above step is done, owner needs to fill details like:
    • Name  
    • Ward   
    • Address
    • Previous Owner
    • Current Owner 
    • Property Description
  • On providing these details, the owner needs to mention the following:
    • Property Tax Amount
    • Mobile Number
    • Email ID
  • Now, select the payment gateway of your choice out of the given options and click on Pay Online button.
  • The online payment of property tax can be made via debit card, credit card, net banking or UPI. System may also generate a payment receipt after successful payment.
  • Once online payment is made successfully, transaction details are generated. The user or owner should record or note them properly for future reference. PMC usually takes 3 working days for updating the property tax payment records.

 

Need of the Property Tax Adviser or Consultant

 

As we have explained in several of our previous posts, property tax calculation needs to be correct in all respects and filing needs to be as per guidelines stated in the taxation laws. Only a qualified property tax consultant can do it properly for you. It is not at all advisable to file incorrect property tax returns. The PMC regularly audits the records and if any discrepancy is detected by them, they will issue demand or penalty notices to the owner(s). Most of the times it will be an extremely unpleasant experience to deal with taxation authorities. Hence, it is always a better option to take professional help in the process.

 

You may consult a competent property lawyer right away on the LegalKart platform.

BBMP property tax rates and online payment process
Tax

BBMP property tax rates and online payment process

We have been posting a series of articles on property tax and payment process available in various cities of India. In today’s post, we will share the details about the Bruhat Bengaluru Mahanagara Palike (BBMP) property tax rates and its payment process.

 

Bengaluru is often referred to as the Information Technology and Startups capital of India. The city is attracting a lot of people for high tech jobs that have high earnings potential. As a result, the city’s real estate market has seen a phenomenal growth with more and more people flocking to buy their dream homes.

 

However, as we have explained in several previous posts that, when a buyer becomes the owner of a property, the individual(s) is liable to pay property tax on annual basis to the state government. This is a mandatory requirement as laid by law. The responsibility of property tax collection in the city of Bengaluru lies with Bruhat Bengaluru Mahanagara Palike (BBMP) – the local municipal corporation of the state government of Karnataka.
 

Some of the important points that property buyers must know all the time are:

  • The official website of BBMP is https://bbmptax.karnataka.gov.in
  • BBMP uses Unit Area Value (UAV) method to calculate the property tax liability
  • The UAV depends on:
    • location of property – rural, semi-urban or urban, etc.
    • type of property – residential, commercial, etc.
  • BBMP provides online facility to property buyers for making property tax payments
  • Making property tax payment is mandatory irrespective of the fact whether the property is vacant or occupied
  • BBMP uses the tax collected for providing civic services like maintenance of public spaces, parks, roads, electrification of roads, sanitation, drainage, etc.
  • BBMP levies property tax on the following type of properties:
    • Residential
      • occupied by owner or tenant
      • vacant
    • Commercial
      • factory or go-down or warehouse
      • office or shop

 

How does BBMP calculate the property tax liability?

 

As explained above, BBMP uses the UAV method to calculate the property tax liability. As per the guidelines mentioned by the Department of Stamps and Registration, Bengaluru is divided in 6 zones (A to F), further classified in sub-divisions and ward numbers. The zone wise details are as below:

 

  • For Residential Property

 

Zone

Occupied by Tenant (Rs. per sq.ft.)

Occupied by Owner (Rs. per sq.ft.)

A

5

2.50

B

4

2

C

3.60

1.80

D

3.20

1.60

E

2.40

1.20

F

2

1

  • Commercial Property

 

Zone

Occupied by Tenant (Rs. per sq.ft.)

Occupied by Owner (Rs. per sq.ft.)

A

20

10

B

14

7

C

10

5

D

8

4

E

6

3

F

3

1.5

 

  • Vacant Property or Land Tax

 

Zone

Property Tax (Rs. per sq.ft.)

A

0.50

B

0.40

C

0.30

D

0.25

E

0.20

F

0.12

 

What is the formula used by BBMP for property tax calculation?

 

The formula used by BBMP for property tax calculation is as below:

  • Property Tax = (Gross Unit Area Value – Depreciation Value) X 20% + (Cess)
    • Gross Unit Area Value = Sum of the following:
      • tenanted property area X rate per sq.ft. X 10 months
      • self-occupied property area X rate per sq.ft. X 10 months
      • vehicle parking area X rate per sq.ft. X 10 months
    • Owner(s) may also need to take the depreciation value of property into consideration for calculating the correct property tax amount

 

Note: The property tax calculations tend to be complex and it is always right to involve a qualified and knowledgeable property tax consultant for doing it right. Any miscalculations will only invite unpleasant tax notices from the competent authorities once detected.

 

What is the process of filing BBMP property tax online?

 

A property owner can take the following steps for making the BBMP property tax payment via online mode:

  • Log in to the official website of BBMP - https://bbmptax.karnataka.gov.in
    • Any website appearing similar to that of BBPM and claiming to provide tax rebates may be fake. Property owners must exercise caution and avoid transacting on such websites.
  • The website will ask to enter the Property ID details and full name as registered in property papers to fetch the details of the property for which tax is to be filed.
    • Once the property is registered in an owner’s name, a unique property id is issued by BBMP to the owner that is used for property tax filing purposes.
  • Once you provide the property id, click on fetch and the website will display the details of the corresponding property.
  • Verify the property details properly and then click the ‘proceed’ button.
  • Website will open Form IV where you will have an option to make changes in the property details, if required. If all details are correct, then click the ‘proceed’ button.
  • Website will now open Form V. It is advisable and extremely important to carefully check the details given on Form V.
  • Once the owner verifies all details, proceed to make payment online.
  • Property tax challan is generated and the website asks the user to proceed for making the payment via debit card, credit card or net banking.
  • Once the payment is made successfully, the transaction number is generated. Owner(s) is advised to save the transaction details safely for future reference.
  • The website generates the property tax payment receipt that can be viewed, printed or downloaded after 24 hours of making the payment.

 

In a nutshell, it is fairly simple to file the BBMP property tax online. However, calculating the same properly may be a challenging and tedious task. Also, not all property owners are technology savvy and hence filing the tax online may sometimes become equally challenging.

 

Hence, it is advisable to consult a good property tax consultant who can assist you in making proper calculations and filing of property tax as per the provisions of law.

 

You may consult a competent property lawyer right away on the LegalKart platform.

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