How To Pay PMC Property Tax Online And Offline?
The Pune Municipal Corporation (PMC) collects the city’s property tax from owners of residential and commercial real estate. PMC property tax collection is its second-largest revenue source and stands applicable to most of the properties and vacant land within the Municipal corporation boundaries. The funds collected are used for building schools, improving sanitation, etc.
How to Pay PMC Property Tax?
The Pune Municipal Corporation has gone digital to enable taxpayers to pay PMC tax online in an entirely paperless way as part of the implementation of e-Governance services. The website is accessible in English and regional languages like Marathi. However, by going to the appropriate ward offices, one can also pay the property tax offline as mentioned earlier. In order to facilitate the payment of PMC property taxes, we have described both processes step-by-step which are as follows:
PMC Property Tax Online Payment Process
Follow these steps to pay PMC property tax online:
- Go to PMC’s official website.
Visit the official website of PMC. The webpage will open in the Marathi language by default. If you want to change the language to English, go to the top right corner and select English from the drop-down box.
- Select ‘Pay Property Tax’
Select ‘Online Services’ and click on ‘Pay Property Tax’, which is an option under ‘Property Tax Related’.A prompt will pop up asking if you are ok with being taken to an external source. Click on ‘OK’, and you will be redirected to a new window.
- Select ‘Pay Online’
Now, select ‘Pay Online’. A form will open.
- Fill out the Forms
Fill out the details including Section ID, Peth ID, and Account Number. and click on submit.
- Make Payment
The Property Owner Details should appear on the screen, and you need to fill in the Property Dues details, including the amount, email id, and mobile number of the applicant. Select your preferred payment gateway type and finally click on Pay Online.
PMC Property Tax Offline Payment Process
In offline mode, property tax is accepted in cash, cheque, or demand draft that is drawn in favor of ‘The Assessor and Collector of Tax, PMC Pune’. To pay the tax in offline mode, one can visit any of the following places:
- One of the 30 PMC’s wards offices
- A citizen facilitation centre linked with the PMC
- Bank branches of HDFC Bank, Cosmos, ICICI Banks, and Bank of Maharashtra that the PMC has authorized
- Self-payment kiosks to pay taxes set up by the PMC
How to Calculate PMC Property Tax?
Property tax is the portion of the actual value of the property owned by a person based on the ready reckoner rate used by the revenue department to determine the amount of stamp duty.
The Pune Municipal Corporation allows individuals to compute the amount of the PMC tax bill payment to be made via the online portal, the information based on the property’s age, the locality, the usage, the area, the kind, and the total plinth area. There are online resources also available for PMC property tax rates.
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PMC Property Tax Calculation Formula
According to reports, the PMC covers approximately 10 lakh properties, including homes and vacant lands. The corporation assesses the carpet area of the property and applies a capital value-based system to calculate taxes.
The formula given below can be used to compute PMC property taxes manually:
Property Tax = Capital Value x Tax Rate,
Capital Value = Base Value x Built-up Area x Use Category x Building Type x Age Factor x Floor Factor
Online resources provide information on the various properties’ tax rates and can be searched easily on the web. It is to be noted that a self-occupied property’s capital value differs from a rental property’s capital value. According to the Income Tax Department of India, the capital value shall be equivalent to the rent received or the maximum municipal valuation for properties that are rented out.
The amount due for the PMC tax bill payment can be computed via self-assessment. This can be done using the PMC property tax calculator from the PMC’s online portal. All you need to do is add data such as the carpet area, location, type of property, usage, construction year, and total plinth area. Using the tax calculator can ease the tax payment process. Here’s the PMC property tax calculator, fill in the relevant details to compute the amount due.
Deadline for PMC Property Tax Payment
For the first half of the year (from 1st April to 30th September), the deadline to pay the PMC property tax is May 31st. For the second half of the year (from 1st October to 31st March), property owners must pay the remaining balance by December 31st. If the PMC property tax is paid after the due date, a penalty of 2% is applied monthly starting on July 1st for the first half-year and January 1st for the second half-year.
Additionally, there are the following tax incentives available if PMC property taxes are paid in full before the deadline:
- If the Annual Rateable Value is up to Rs.25,000, owners of residential/non-residential/open plots registered specifically as residential buildings are eligible for a 10% rebate on general tax. Owners are eligible for a 5% discount if the Annual Rateable Value exceeds Rs.25,000 (i.e., Rs. 25,001 and above).
- Residential properties that have vermiculture, solar power, and rainwater collection systems are eligible for a 5% municipal tax discount for any one of these facilities and a 10% discount for any 2 of these projects on Municipal Taxes (excluding water and government taxes).
How to Get a PMC Property Tax Receipt?
The ‘Tax Receipts’ option on the website also allows taxpayers to access their previous PMC property tax challan. It is advisable to obtain the PMC corporate property tax receipt in order to prevent any confusion about the payment of taxes. Here’s how to get a PMC property tax payment receipt:
Step 1: Visit the official website of PMC.
Step 2: Click on ‘Tax Receipt’
Step 3: Enter the property type, Section ID, Peth ID and Account number. Hit Submit.
The property tax receipt will be displayed on the screen. Download it for future reference.
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PMC Property tax payment Exemptions
Properties used for worship or religious purposes, including those registered with the charity commissioner as a charitable institution/trust are exempt from the purview of PMC property taxes.
PMC Property Tax Payment Due Dates, Penalty and Incentives
For the first half of the year (from 1st April to 30th September), the deadline to pay the PMC property tax is May 31st. For the second half of the year (from 1st October to 31st March), property owners must pay the remaining balance by December 31st. If the PMC property tax is paid after the due date, a penalty of 2% is applied monthly starting on July 1st for the first half-year and January 1st for the second half-year.
Additionally, there are the following tax incentives available if PMC property taxes are paid in full before the deadline:
- If the Annual Rateable Value is up to Rs.25,000, owners of residential/non-residential/open plots registered specifically as residential buildings are eligible for a 10% rebate on general tax. Owners are eligible for a 5% discount if the Annual Rateable Value exceeds Rs. 25,000 (i.e., Rs. 25,001 and above).
- Residents with vermiculture, rainwater collection systems, and solar power systems are eligible for a 5% municipal tax discount for any of these facilities and a 10% discount for any 2 projects on Municipal Taxes (excluding water and government taxes).
Latest News on PMC Property Tax
According to a recent report, until March 31st, 2022, PMC was at a 5-year high of Rs.1,845.91 crores worth of PMC property tax collection was recorded, as opposed to the previous year (valued at Rs.1,664.15 crores) is an increase of 10.92% and a staggering 70.22% increase from the fiscal year 2017-18 (valued at Rs.1,084.39 crores)
Vilas Kanade, the chairman of the property tax division, declared that the PMC successfully collected Rs.1,845.91 crores in property tax. From April 1st, 2021, until March 31st, 2022, the tax was paid by 861,671 different property owners. The property tax division also reported an increase of 71,220 in the number of taxpayers this year. Among the taxpayers, most people choose to pay their taxes online owing to the Covid-19 pandemic and the following lockdowns.
5.81 lakh property owners decided to pay their taxes online, and the property tax agency reports that a total of Rs.935.21 crore was collected this way. 1.11 lakh property owners paid their taxes by check for a total of Rs.670.14 crore. 1.46 lakh property owners paid a total of Rs.179.89 crore in cash as their preferred method of tax payment.
Following a period of relaxation brought on by COVID-19, the real estate market experienced a surge following the Maharashtra government’s property registration rebate program. In 2021–2022, the department’s revenues increased to a record level because of this plan.
According to city engineer Prashant Waghmare, PMC received Rs.2,002 crores worth of income till March 31, 2022, which is 169% more than the target. Due to lockdown and pandemic, PMC only collected Rs.507 crores in income from building permission in 2020–21.
Final Word
Used for the provision of basic facilities and general development, taxpayers are motivated to pay property taxes regularly by the PMC. PMC property tax must be paid online or offline before the due date. Calculation of the tax liability can be easily done via self-assessment by using the formula or by simply visiting the online portal and accessing the tax calculator. Several payment gateways are supported to ease out the payments for online taxpayers and numerous locations are available for the people who prefer going and making the payment in person.
FAQs
Ans: The documents required are as such:
– Documents establishing ownership like Sale deed / Index II / 7-12 extract/ City survey extract
– Documents issued by Building Permission Department:
a. Building Permission Certificate / Occupancy Certificate
b. Building Completion Certificate
c. Approved plan
Note: No extra fees are charged for the assessment of property tax, however, the owner MUST communicate with the corporation within 15 days of completion of construction / actual data of occupation of property.
Ans: In the event that such permission is obtained, the property is assessed at the prevailing rate as non-residential property. However, the applicable Property Tax is two times additional as per the Maharashtra Municipal Corporation Act, Section 267A, if the residential property has received a completion certificate or not.
Ans: It takes anywhere from 15 days to 45 days, based on if objections are received.
Ans: Yes, on payment of the entire sum due by 31st May of the current year, if the Annual Rateable Value is up to Rs. 25,000, owners of residential/non-residential/open plots registered specifically as residential buildings are eligible for a 10% rebate on general tax. Owners are eligible for a 5% discount if the Annual Rateable Value exceeds Rs.25,000 (i.e., Rs.25,001 and above).
Ans: Yes, there is a 2% monthly fine in the event that there is a delay in making the payment for the tax dues.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
