How To Pay MCGM Property Tax And How Are The Taxes Calculated?

Municipal Corporation Greater Mumbai (MCGM) is the local body entrusted to impose, evaluate, and collect MCGM property tax. MCGM property tax payment is a recurring liability for property holders in Mumbai. MCGM, the richest civic body in the country, collects BMC property tax every year, and the proceeds are applied to the maintenance and development of civic amenities. Moreover, sewer, water benefits, and street taxes are also collected in tandem with property tax. 

This tax is collected annually and half-yearly. MCGM property tax is subject to revision every five years; the last revision, due in 2020, was postponed due to the covid-19 pandemic.

MCGM Property Tax

Both commercial and residential property owners in Mumbai are liable to the Brihanmumbai Mahanagarpalika property tax. However, property owners with floor areas up to 500 square feet are eligible for 100% relief from Mumbai property tax payment. The State Government has waived property tax on properties up to 500 square feet off floor area in the Union budget of 2022. Nevertheless, a large section of society still falls under the purview of property tax in Mumbai, and citizens should make payments within the due dates to avoid penalties.

How to Pay MCGM Property Tax Online?

MCGM property tax Mumbai can be paid both via the online and offline convention mode. First, let’s know how to pay your MCGM property tax online. 

Step 1: Open the MCGM online portal using the link: portal.mcgm.gov.in.

Step 2: Find the tab that says ‘pay property tax’ under the tab ‘online services’. 

Step 3: On the next page, enter your property account number. 

Step 4: You will find the option to view the bills pending for payment and to pay property tax Mumbai online; select the latter one. 

Step 5: Make MCGM property tax payment online using any of the electronic modes of payment. 

Your BMC property tax online payment will be processed within a few seconds. 

Alternatively, citizens can also pay MCGM property tax online using the new MCGM citizen login portal:

Procedure to pay MCGM property tax on the MCGM citizen login portal:

• On the website of MCGM, click on the property tax (new) button, and you’ll be automatically redirected to the citizen property tax payment page. 
• Enter your property account number and feed the captcha code. 
  • If you don’t have a property account number, you can use the search option listed on that page. 
  • It will ask you for your ward number and property address. On entering the values, you will get your property account number. 
  • Use it to log in. 
• You can find a detailed description of your pending property tax dues on the next page. 
• Enter the amount you are willing to pay or the total payable amount and make the payment. 

Also Read: Pradhan Mantri Awas Yojana (PMAY): Benefits, Features And More

How to Pay Your MCGM Property Tax Offline?

Even though MCGM is taking huge strides to provide taxpayers with the ease of online payment, it understands that not everyone is comfortable with online payment channels. 

Thus, MCGM has kept the offline payment procedure intact, and taxpayers can still pay their MCGM property tax bill offline. 

To pay your BMC property tax payment offline, visit any of the three locations of MCGM near you.

• BMC help centres
• Office of the Assistant Revenue Officer
• Citizen Facilitation Centre of your ward.

How to calculate MCGM property tax?

Unlike other property taxes from different municipal bodies across the country, property tax in MCGM is calculated on the property’s capital value. 

Earlier tax calculation was based on a rent value system. However, when MCGM saw that they were running low on revenue collection owing to artificially low property rent charges, they revamped the process. 

The current property tax Mumbai rules consider a bundle of factors, including property location, type(residential or commercial) or land, stage of construction, occupancy carpet area, Floor Space Index (FSI), and amenities provided. 

These factors are assigned different weights, and based on the calculations of ‘capital value’, the MCGM property tax payable with the underlying rate is determined. 

Mathematically, this is done as: 

MCGM Property tax = capital value x Mumbai property tax rate

Capital value is given by: 

CV = Market value of the property x total carpet area x weight allotted to construction type x weight allotted to the age of the building x weight allotted to user category.

Note: The tax base comprises several state and national cesses like municipal educational cess, state education cess, and employment guarantee cess. 

You can do this calculation with just a few clicks using the MCGM property tax calculator available on the website of MCGM. 

• Open the property tax calculator available on the website of MCGM. 
• Fill the details marked with ‘*’ like the type of building, carpet area, nature of construction, ward, floor, etc.
• Proceed by clicking the ‘calculate’ to get your BMC property tax Mumbai. 

What’s the Due Date for the MCGM Property Tax Payment?

Earlier, the due date used to be the close of the relevant financial year; however, now, you can pay your MCGM property tax by 30th June every year. 

Failing to pay property tax would attract a penalty of 2% per month from the month succeeding the due date. 

2% might sound nominal, but the penalty amount will keep increasing every month or part thereof for which you delay the payment.

MCGM Property Tax Receipt or Challan

The receipt of your MCGM property tax payment online payment is generated on the online portal soon after you make the payment. You can download the receipt. 

However, if you wish to download old tax receipts, you can do that in the following manner:

• Open the MCGM citizen portal property tax online portal.
• Proceed with ‘online service’.
• Look for the option called ‘property tax details’ in the menu and open it. 
• Click on ‘receipt of’ and download the receipts of your previous online BMC property tax payments. 

Remember, only the receipts of those payments that are made online will be available on the portal. 

For accessing proof of your offline payments, you can visit their respective payment centres and ask them for a payment challan. 

How to Change Owner’s Name for MCGM Property Tax Online?

MCGM provides the facility to change the property owner’s name in the property tax records. 

A need for a name change may arise when you are required to furnish your property tax bill as proof somewhere, for instance, along with your loan application. However, you cannot do so because the property tax bill is not on your name or contains spelling mistakes. 

Here, you can use MCGM property tax name change facility. 

Simply forward an application to the Revenue Commissioner’s office along with the sales deed or share certificate, and your application will be processed within a few days. No fees will be charged, nor are you required to produce the property card. Once your request has been processed, an intimation will be sent via email or SMS. 

How to View MCGM Property Tax Bills online?

All your property tax bills, cleared and pending, are available on the online portal of MCGM. 

To view your pending property tax liability:

• Visit the official website of MCGM. 
• Enter your property account number and fill in the captcha to proceed to the next step. 

You will receive an OTP on your registered mobile number; enter the OTP to proceed with the MCGM property tax bill download.

How to MCGM Property Tax Bill in your Email?

One can understand the level of convenience MCGM is determined to provide to its taxpayers with the fact that they are sending property tax bills, alerts, and notifications to the inbox of taxpayers. 

To receive your property tax bills by email, you must complete your KYC. Once your KYC formalities are completed, follow the steps to get your MCGM portal property tax bill by email:

• Go to the MCGM Citizen Portal.
• Enter your unique property account number, and feed the captcha to ‘login’.
• Upload the attested copy of the documents asked. 
• Provide the email ID on which you wish to receive MCGM property tax bills and alerts. 

You’ll  soon start receiving notifications, alerts, and property tax bills on your registered email ID. 

Exemption from MCGM Property Tax Payment

MCGM property tax is not applicable on all properties. MCGM always looks to relieve residents with small properties from property taxes, and MCGM has expressly exempted the following class of properties from property tax:

• Properties that are exclusively used for public worship like temples, mosques, etc. 
• Properties exclusively used for charitable purposes. 
• Properties owned by a Diplomatic or Consular Mission of any foreign state or Government. 
• Earlier this year, MCGM announced a 100% waiver of property tax on flats measuring upto 500 square feet of carpet area. The civic body informed this decision would benefit around 16.15 lakh residents. 
• Flats measuring 500 to 700 square feet in floor area are entitled to a 60% concession on Brihanmumbai Municipal Corporation Property tax. 

Rebate on MCGM Property Tax

MCGM issued a notice in December 2020 providing a 15% rebate on property tax to housing societies. 

This rebate is available to the extent of 15% of general tax in property tax. Housing societies that process their dry and wet waste, recycle grey water, or implement rainwater harvesting are eligible for this rebate. This rebate shall also be available to housing societies based on their mechanism for disposing waste. 

Also Read: PCMC Property Tax: Guide To Calculate & Check Status Online

The Early Bird Incentive Under MCGM Property Tax

It’s a natural human tendency to clear bills close to the last date. Thus to receive some property taxes in advance, MCGM developed the early bird scheme. 

The scheme offers a 2% tax concession for those payers who are liable to pay property taxes on a half-yearly basis, provided they pay their dues before 30th June. 

Moreover, a 4% tax concession is available for citizens who pay their second property tax instalment by 30th June. 

However, there’s a precondition attached to this, which is that there should be no outstanding tax for the citizens availing early bird scheme. 

Final word

MCGM Property tax is your contribution to the betterment of your municipality; the streets, roads, sewage, health infrastructure, parking facilities, etc., are all backed by the revenue MCGM receives from property taxes. Property tax payments also give you a legal shield against all property-related frauds, because you can always produce your property tax receipt as proof of your continued ownership of the property. Moreover, the online payment facility has made paying property tax much more convenient and transparent. You can efficiently pay your property tax from the MCGM property tax portal and save the receipt for future reference.

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FAQs on MCGM Property Tax

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.