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Now, pay property tax directly to Brihanmumbai Municipal Corporation

Applicable to all buildings that have acquired occupation certificate after April 1, 2018

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Now, flat owners can pay property taxes directly to the Brihanmumbai Municipal Corporation instead of taking the intermediate route of paying them through the housing society authorities. The new decision will be applicable to buildings which have acquired an occupation certificate (OC) after April 1.

Additionally, it will also enable the BMC to increase the collection of property taxes which draws the highest revenue for the civic body.

The new tax, which can be paid through the BMC's online portal, will prove to be beneficial for the flat owners who often suffer due to delays in the procedure. Often, the flat owners pay the taxes to the society within the stipulated date but delays in payment by the society garner additional charges and other legal actions.

The civic body took the decision in lieu of the long withstanding demand of the citizens to levy property taxes as per its area in the building. In case the flat is unsold, the builder will have to pay the taxes. 

However, once the flat is sold, the new owner will be directly paying the taxes.

Earlier, the BMC had allowed flat owners to pay property taxes individually even if an OC is dated before April 1 with the aid of a No-objection (NOC) certificate from the society authorities.

However, of the total 28 lakh flats in Mumbai, only 1.42 lakh flat owners are paying taxes independently.

Currently, there are around 2.75 lakh buildings in Mumbai and approximately 150 new buildings acquire an OC every year.

"The decision of the BMC to levy individual bill requires being appreciated by one and all. This will immensely help to prompt property taxpayers", said Dharmin Vinod Sampat, Secretary for Co-operative Societies Residents' Users and Welfare Association.

"Through the new system, the residents will be benefited by the 'early bird discounts' by paying the tax in advance, "informed the Deputy Municipal Commissioner, Sanjay Mukherjee.

BMC'S HIGHEST SOURCE OF REVENUE

  1. Property tax collection became the highest source of revenue for the BMC after the discontinuation of octroi and the introduction of GST
     
  2. BMC set a target of collecting Rs 5,200 crore as property tax in 2017-18
     
  3. However, it has managed to collect Rs 5,132 crore only
     
  4. There are around 28 lakh flats/shops under the BMC’s jurisdiction
     
  5. Of the 28 lakh flats, only 1.42 lakh flats pay property tax independently.
     
  6. Every year, around 150 new buildings get an OC.
     
  7. All buildings getting an OC from April 1 onwards will have an independent property tax bill for every flat
     
  8. Property tax dues worth over Rs 9,000 crore from over 4,000 properties have accumulated with the BMC so far
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