MCGM Property Tax Mumbai (2024): Meaning, Calculation, Rebates, Online & Offline Bill Payment

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Property tax, also called house tax or municipal tax, is an essential part of the taxation system in India. The local municipal authorities in India are responsible for calculating, imposing, and collecting these taxes to maintain local amenities. The MCGM property tax is an annual tax every Mumbai property owner must pay under the Municipal Corporation Act of 1888. Here is a complete guide for MCGM property tax payment online and offline.

What is MCGM Property Tax?

All property owners in Mumbai holding a domicile certificate must pay the MCGM property tax bill annually under the Municipal Corporation Act of 1888. The tax amount depends on multiple factors like the property type, location, total area, etc. Failing to pay the tax on time attracts additional fines and penalties, usually 2% of the tax amount each month.

MCGM stands for Municipal Corporation of Greater Mumbai, previously known as the Brihanmumbai Municipal Corporation. It is the governing organisation of Mumbai that collects MCGM property tax from each Mumbai resident owning real estate, shops, houses, land, offices, or buildings in the city.

Calculating MCGM Property Tax

The MCGM calculates the MCGM property tax bill using the capital value system. It utilises the property's market value to calculate the applicable tax. The municipal corporation announces the ready reckoner rates each year. It publishes it on the Department of Registration of Stamps website at https://ptaxportal.mcgm.gov.in/CitizenPortal/#/login, based on which the entity calculates the MCGM property tax. Here is how to estimate the MCGM tax based on the unit capital value system.

Property Tax = Capital Value x Property Tax Rate

Use the following formula to calculate the capital value for a residential property:

Capital Value (CV) = BV x UC x NTB x AF x FF x CA

Here

BV = Base Value according to the Ready Reckoner Rate

UC = User Category

NTD= Nature and Type of Building

AF= Age of the Building

FF= Floor Factor

CA= Carpet Area

Here is an example to calculate the MCGM property tax in Mumbai.

Parameter	Value
Ready Reckoner Rate	Rs 40,000/sq m
User Category	Residential (0.5)
NTB	1 (for RCC building)
AF	0.95 (Age Factor 9-10 years old building)
FF	1.0 (1-4 Floors)
Carpet Area	200 sq m
Tax Rate	0.76%

The capital value for this property will be as follows:

Capital Value (CV) = BV x UC x NTB x AF x FF x CA

= 40,000 x 0.5 x 1 x 0.95 x 1 x 200

= Rs. 38,00,000

Total Property Tax = 0.755% of 23,75,000

= Rs. 28,690

MCGM Property Tax Payment Procedure

MCGM allows MCGM property tax payment through both online and offline methods. You can visit a BMC help centre, Office of the Revenues Officer, or Citizen Facilitation Centre in your locality to pay the tax offline. MCGM online payment of property tax is also possible at the official BMC website at https://portal.mcgm.gov.in. Enter your property details and make the tax payment using your preferred payment method.

Property Tax Payment by MCGM

Here are a few things you must know about property tax payment by MCGM:

MCGM uses the capital value system to calculate the MCGM property tax bill.
You can pay MCGM property tax online and offline using your preferred payment method.
Upon payment, the property tax receipt also serves as valid ownership proof.
All residential units below 500 sq ft of area are exempted from MCGM property tax payment.

Online Payments for MCGM Property Taxes

Here are the steps to pay your MCGM property tax online:

Visit the BMC online portal.
Click on the property tax (New) button.
Provide your property account number and captcha to log in.
Enter the required information, verify the details, and click “Make Payment” to pay the tax using your preferred payment method, including credit card, debit card, net banking, or NEFT.

Offline Payment of MCGM Property Tax

To pay the MCGM property tax offline, visit a BMC help centre, Office of the Revenues Officer, or Citizen Facilitation Centre. Fill out a form and pay the tax as applicable. You will receive an MCGM tax receipt that acts as ownership proof for land disputes. You can also use the tax receipt to apply for a property loan or update your property title in the local books.

Rebates for Property Tax in Mumbai

As a taxpayer, you can avail of a rebate on Mumbai property tax in the following cases:

All residential units below 500 sq ft of area are exempted from MCGM property tax payment.
If you own a residential unit of carpet area between 501 sq ft and 700 sq ft, you can avail of a 60% reduction in your MCGM property tax bill.
Property tax exemptions apply to any property in Mumbai used for a charitable purpose or public worship.
Any property dedicated to a foreign state's Diplomatic or Consular Mission as appointed by the Government is exempt from property tax payment.

How Can I Access My MCGM Property Tax Bill Online?

You can get your MCGM property tax bill online via email by filling out a KYC form online. Here is the stepwise procedure:

Visit the MCGM online portal.
Enter your property account number.
Enter the ‘Captcha’ and click ‘login’.
Upload the necessary documents, including your domicile certificate.
Provide your email ID and contact details to receive the property tax bill via email or SMS.
Once approved, you will receive confirmation by email.

MCGM Property Tax Due Date and Penalties and Income Tax Benefits

Recently, the MCGM has extended its property tax due date from 31^st March to 30th June. Failure to pay the tax before the due date will attract a monthly penalty of 2% of the outstanding tax payment. In January 2022, the state legislation exempted property tax on all residential units below 500 sq. ft. of area. Moreover, residential units with a carpet area between 501 sq. ft and 700 sq. ft can claim a 60% reduction in tax rates. Tax exemptions also apply to properties used for charitable purposes and public worship.

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