Latest news with #MumbaiMunicipalCorporationAct
Hindustan Times
9 hours ago
- Business
- Hindustan Times
Mumbai property tax rises by 15% on average; flats under 500 sq ft remain exempt
The Mumbai Civic body, also known as the Brihanmumbai Municipal Corporation (BMC), has restructured property tax in the Mumbai real estate market by an average of almost 16%, according to a statement issued by the corporation. According to BMC, there has been no amendment or increase in the structure or rate of property tax. However, due to ready reckoner rates in Mumbai increasing from FY26, the property tax automatically stands to be increased, owing to the base of capital value going upwards. To cite an example, if the annual property tax for a flat owner was ₹50,000, it would now be above ₹57,500. The Brihanmumbai Municipal Corporation (BMC) has increased property tax for the first time in nearly a decade. The last revision took place in 2015, but the scheduled hike in 2020 was deferred due to the COVID-19 pandemic. Under Section 154 (1C) of the Mumbai Municipal Corporation Act, 1888, the capital value of properties must be revised every five years, which typically leads to an increase in property tax. Also Read: Major relief for homeowners: ITAT rules redeveloped flats not taxable as 'other income' According to the BMC, flats smaller than 500 sq ft have been exempted from property tax since 2022, and the decision taken earlier remains as it is. Hence, the BMC clarified that there is zero levy on these flats. There are 4,00,000 housing societies in Mumbai. BMC individually issues property tax bills to flat owners. The Maharashtra government announced in 2022 that it would waive property tax for flats below 500 sq ft, a move that it said would help citizens save ₹460 crore annually. Also Read: Mumbai's unsold luxury housing inventory rises 36% in Q1 2025 after two-year decline: ANAROCK The BMC announced on May 29 in a statement that it has deferred its much-debated fee on solid waste management, or garbage tax, in view of the increase in property tax. According to the BMC, the user fee was meant to cover the daily collection of solid waste from individual homes as well as commercial and industrial establishments. The levy was proposed in April; the fee ranges from ₹100 to ₹7,500, depending on the size and nature of the establishment. Also Read: Housing sales in top 15 Tier 2 cities fall 8%, sales value up 6% in Q1 2025: Report However, in view of the increase in property tax, Maharashtra Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde decided to defer the levy of the garbage fee.
Time of India
2 days ago
- Business
- Time of India
No change in property tax rates, higher bills automatically due to RR rate revision: BMC
MUMBAI : The Mumbai civic body on Thursday said it has not increased property tax rates and that people received higher bills due to the changes made in the ready reckoner rates for the financial year 2025-26. Ready reckoner rates, also known as guideline values, are minimum property values determined areawise by the government for taxation purposes in Maharashtra . In a release, the Brihanmumbai Municipal Corporation (BMC) also said it stayed the implementation of solid waste management fees after Maharashtra Chief Minister Devendra Fadnavis and Deputy CM Eknath Shinde pointed out that the revised property tax was going to put an additional burden on city residents. Flats smaller than 500 square feet are already exempted from property tax, it pointed out. "The average 15.89 per cent increase in the latest property tax bills came about as under section 154(1)(c) of Mumbai Municipal Corporation Act, capital value of properties has to be revised every five years. While the last revision was carried out in 2015, the update in 2020 was deferred due to the COVID-19 pandemic," the BMC explained. Maharashtra government revised the ready reckoner rates on March 31, 2025. "The current revision comes after a 10-year gap. There is a legal provision that these payments will be automatically revised due to the changes made in the ready reckoner for the financial year 2025-26," the release stated. BMC annually collects property tax from more than nine lakh property owners in the city and suburbs. Notably, elections to the BMC, pending for three years, are expected to be held in the next few weeks following a Supreme Court order. Political party leaders have raised objections to the recent property tax hike. In a post on X, BJP leader and former BMC opposition leader Ravi Raja said, "While common Mumbaikars continue to pay diligently, 481 big defaulters owe Rs 11,000 crore with no serious recovery in sight. Why burden sincere citizens?" Raja also demanded that the civic administration act firmly on chronic defaulters before imposing hikes on honest taxpayers. "The burden of inefficiency cannot be passed on to law-abiding citizen," he asserted.
Time of India
2 days ago
- Business
- Time of India
Recover property tax dues from govt, pvt firms first: BJP to BMC
Mumbai: A day after BMC increased property tax rates by up to 15% in bills raised for over nine lakh properties for 2025-26, former BMC opposition leader Ravi Raja of BJP criticised the civic body for burdening Mumbaikars while failing to recover massive pending dues. Tired of too many ads? go ad free now Raja pointed out that BMC is yet to collect Rs 14,320 crore, including penalties, in outstanding property tax fr-om both govt and private entities, including Mumbai Metropolitan Regional Development authority, J Kumar Infr-aprojects Ltd, Raghuvanshi Mills, and Kanakia Spaces Realty. "Instead of targeting citizens, why not recover what's already due?" he asked. Defending the hike, BMC said that it was the first revision in over a decade and was justified. "BMC has issued revised property tax bills reflecting an average increase of 15.89%. However, BMC clarifies that it has not introduced any changes or hikes in the structure or rates of property tax. The revised bills are a result of changes in the Ready Reckoner rates for the financial year 2025–26, which are legally mandated to be reflected in the bills. These revised bills have been issued in accordance with legal provisions. As per Section 154 (1C) of the Mumbai Municipal Corporation Act, 1888, there is a legal requirement to revise the capital value of properties every five years," BMC stated. "The last revision was carried out in 2015. However, in 2020, amid the Covid pandemic, the revision was deferred on humanitarian grounds, and the law was amended accordingly. Thus, the current revision in property tax bills is taking place after a gap of 10 years." Tired of too many ads? go ad free now A special notice is attached to the revised tax bills, which includes a note stating: "The capital value of the property is provisional." This means the final tax amount is subject to court orders and may change. If a higher amount has been charged, the excess will be adjusted in subsequent bills. Properties measuring less than 500 sq ft are exempt from property tax, and hence no charges are being levied on these properties in the revised bills. The exemption strictly applies to the carpet area — not built-up or super built-up measurements — and is limited to residential properties.
Hindustan Times
2 days ago
- Business
- Hindustan Times
Garbage tax deferred amid property tax hike
MUMBAI: The civic administration has deferred its much-debated fee on solid waste management, or garbage tax, in view of the increase in property tax. The user fee was meant to cover the daily collection of solid waste from individual homes as well as commercial and industrial establishments. Proposed in April, the fee ranges from ₹100 to ₹7,500, depending on the size and nature of the establishment. It was to be levied under the revised Cleanliness and Sanitation Bye-Laws 2025. However, on Wednesday, the Brihanmumbai Municipal Corporation (BMC) announced an increase in property tax of nearly 16%. In view of this additional financial burden on citizens, chief minister Devendra Fadnavis and deputy chief minister and urban development minister Eknath Shinde stepped in to defer the proposed user fee on solid waste collection. It was to be added to the property tax bills. Meanwhile, the BMC has begun issuing revised property tax bills for financial year 2025-26, reflecting an average increase of 15.89%. The civic body clarified that the increase is not the result of any change in tax structure or rates by the BMC, but a statutory revision based on updated ready reckoner rates, which determine the capital value of properties. Under Section 154 (1C) of the Mumbai Municipal Corporation Act, 1888, the capital value of properties must be revised every five years. Although this mandate was implemented in 2015, the scheduled 2020 revision was postponed due to the Covid-19 pandemic. Legal amendments delayed the process, resulting in the current revision taking place after a ten-year interval. Each revised tax bill now includes a special notice stating, 'Capital valuation of the property is provisional, indicating that the final tax amount is subject to pending court rulings,' said a senior civic official. Any changes will be adjusted in future bills, either as a refund or additional charge. To protect low-income property owners, the BMC has reiterated that properties measuring less than 500sq ft will continue to be exempt from property tax. These properties have not been issued revised bills, nor will they be subject to the SWM fee, if and when it is imposed. The property tax increase has been criticised, mostly from former corporators and other political leaders, who said the increase was unfair to citizens. In a letter to municipal commissioner Bhushan Gagrani, former leader of the opposition Ravi Raja condemned the administration's inability to recover dues from large defaulters while burdening regular taxpayers. He said property tax has become the BMC's primary source of income after the abolition of octroi, formerly a major revenue stream. According to Raja, while the administration has shown some efficiency in tax collection, it still fails to recoup massive outstanding dues from major property owners. At present, 481 major defaulters collectively owe the BMC a staggering ₹14,320 crore in unpaid property tax. Prominent among them are Raghuvanshi Mills, Taj Lands End Ltd, Seven Hills Healthcare, MMRDA, Bombay Cricket Association and J Kumar Infra, according to the BMC. Gaothans hit with 40% property tax hike A 40% hike in property tax for gaothan properties, traditional or village settlements within the city, has triggered strong opposition. Civic activist advocate Godfrey Pimenta called it 'illegal', demanding its immediate withdrawal. In a letter to civic chief Bhushan Gagrani, Pimenta noted that his latest six-month bill amounted to ₹19,885, a 40% increase over the earlier rate. He argued that this violates the provisions of the Mumbai Municipal Corporation Act, 1888, which caps such increases at 14.52%, as approved by the civic Standing Committee in 2015. Pimenta also cited state ordinances protecting small residential units (under 500sq ft) from tax increases beyond the 2015 level, and asserted that even as administrator, the municipal commissioner cannot exceed the limits set by law. He has demanded a rollback of the hike and adherence to the 14.52% cap, warning against what he called an 'overreach of the civic body'.
India Today
3 days ago
- Business
- India Today
Mumbai civic body says no change in property tax, but value of houses revised
The Mumbai civic body on Thursday said it has not increased the property tax rates, but people received higher bills this month as the value of houses in the city was revised as per a mandatory legal a release, the Brihanmumbai Municipal Corporation (BMC) also said it stayed the implementation of solid waste management fees after Maharashtra Chief Minister Devendra Fadnavis and deputy Chief Minister Eknath Shinde pointed out that the revised property tax was going to put an additional burden on city smaller than 500 square feet are already exempted from property tax, it pointed out. The average 15.89 per cent increase in the latest property tax bills came about as under section 154(1)(c) of the Mumbai Municipal Corporation Act, 1888, capital value of properties has to be revised every five years, the BMC the last revision was carried out in 2015, the update in 2020 was deferred due to the COVID-19 pandemic. As a result, the current revision comes after a 10-year gap, the civic body elections to the BMC, pending for three years, are expected to be held in the next few weeks following a Supreme Court InMust Watch
