Brihanmumbai Municipal Corporation (BMC) property tax rates and payment process
Tax

Brihanmumbai Municipal Corporation (BMC) property tax rates and payment process

We have covered several important cities of the country on the important subject of property tax and its payment process. In this post, we share details about property tax for the city of Mumbai, which is also known as the financial capital of India.

 

The local municipal corporation for the city of Mumbai is called as the Brihanmumbai Municipal Corporation (BMC). This body has also been setup by the state government of Maharashtra and is entrusted with the collection of property tax (also known as house tax or municipal tax) from various types of property owners in the Mumbai Metropolitan Region (MMR). The BMC operates in a similar fashion to several other municipal corporations of the Maharashtra state and utilises the tax revenue realised from property owners for extending various civic amenities to the local city residents. Some of the services include development and maintenance of public spaces, parks, sanitation, electrification, drainage management, etc.

 

Besides others, several important points that property owners need to know include:

 

Property Tax Formula used by the BMC/MCGM

 

The BMC/MCGM uses the capital value method for the purpose of property tax calculations. The tax amount is calculated based on the stamp duty rates prevailing in Mumbai. Several factors that the BMC/MCGM considers for calculating the property tax liability of home owners in Mumbai include:

  • location of property – urban, semi-urban, rural, etc.
  • type of property type – residential, commercial or land, etc.
  • type of amenities provided to property owners
  • age of property
  • type of construction type – multi-story, single floor or independent house, etc.
  • occupation status
  • carpet area
  • floor factor


The formula used by BMC for calculating the property tax is as below:

  • Property Tax = Tax Rate X (Base Value Rate / Market Value of Property) X Built-up Area X Age Factor X Building Type X Category of Use X Floor Factor

 

Note: The MCGM (erstwhile, The BMC) strictly advises the property owners to calculate property tax liability correctly. In case of any errors detected by the municipal corporation can lead to penalties as per the provisions of law.

 

 

Modes of Property Tax payment provided by MCGM/BMC

 

MCGM has the following options using with a property owner can make the tax payment:

 

  • Option 1 – Online property tax payment as a guest (without login)
    • Visit the official website of MCGM/BMC
    • Go to the Online Services section
    • Select Pay Property Tax option
    • Enter Property Account Number as asked on the page
    • Click on Make payment option
    • Select your preferred choice of payment – debit card, credit card or net banking
    • Make the payment and note the transaction details carefully
    • Download the payment receipt and save it properly for future use

 

  • Option 2 – Online property tax payment through citizen login portal of MCGM/BMC (as a registered user)
    • Visit the official portal of MCGM/BMC
    • Click on Property Tax (New) button/option
    • Use Property Account Number and CAPTCH to login to the portal
    • Enter the required property related information as asked on the webpage to proceed further. Website shows pending dues, if any.
    • Verify the details and enter the property tax amount for payment
    • Click on Make payment option
    • Select your preferred choice of payment – debit card, credit card or net banking
    • Make the payment and note the transaction details carefully
    • Download the payment receipt and save it properly for future use

 

  • Option 3 – Offline payment mode
    • In this method, the property tax payment can visit the local BMC/MCGM office (also, called as BMC Help Centres).
    • Take the Property Tax payment form from the designated counter
    • Fill all the details properly in the form including all the property and ownership details
    • Attach the payment instrument – cheque or demand draft. Payment can also be made via cash
    • Handover the duly filled form and payment instrument to the dealing clerk or assistant at the designated counter
    • Collect the payment receipt and save it carefully for future reference

 

Need of the Property Tax Adviser or Consultant

 

We have been discussing the importance of a property tax consultant in all our previous posts. As explained previously, property tax calculations are complex and as per guidelines stated in the law it is the responsibility of the property owner to file the property or house tax properly. Any incorrect tax filing is viewed very seriously by the taxation authorities. Hence, it becomes very necessary to take help from a qualified property tax consultant for this purpose. The property tax adviser will not only calculate the tax liability properly and correctly but will also help the owner in filing it properly and as per the taxation guidelines.

 

You should consult a competent property lawyer right away on the LegalKart platform.

Pune Municipal Corporation (PMC) tax rates and payment process
Tax

Pune Municipal Corporation (PMC) tax rates and payment process

In continuation to the property tax series, we are sharing this article on property tax related details for the city of Pune.

 

The local municipal corporation for the city of Pune is called as the Pune Municipal Corporation (PMC). This body has been setup under the state government of Maharashtra and it is entrusted with the collection of property tax from various types of property owners. As done by any other municipal corporation in India, the PMC also utilises the revenue realised from property tax collection for providing various civic services to the local city residents. Some of the services include development and maintenance of public spaces, parks, sanitation, electrification, drainage management, etc.

 

Some of the most important points all property owners in Pune must know are as below:

  • The official website of PMC is https://www.pmc.gov.in/en/ptax
  • Payment of property tax or house tax is mandatory as per law
  • Property Tax is to be paid by the owner on annual basis
  • Property Tax is applicable on residential as well as commercial properties irrespective of whether they are occupied or vacant
  • Only PMC is authorised to collect property taxes in the city of Pune
  • Tax rate in Pune city may be based on the following factors:
    • location of property – rural, urban, semi-urban, etc.
    • type of property – residential or commercial
    • carpet area
    • age of property
    • plinth area

 

Note: Owners are suggested to file property tax online on the official website of the PMC only. Any other website promising tax rebates or concessions may be fake and illegal.

 

What is the formula used by PMC to calculate the property tax?

 

PMC calculates the property tax based on capital value-based method wherein tax assessment is done on carpet area. The formula used by PMC is as below:

  • Property Tax = Base Property Value X Built-up area of Property X Usage Category X Building Type X Age Factor X Floor Factor X Tax Rate

 

It is always prudent to consult a property tax adviser for getting proper tax calculations done. Also, property taxation rates may vary from one property to another in the city of Pune and it is always better to calculate property tax correctly before filing the same with PMC. Any errors detected by the PMC is likely to be considered as an attempt of property tax evasions by the authorities leading to tax notices and penalties.

 

How can a property owner(s) make property tax payments to the PMC?

 

As done by many municipal corporations in India, the Pune Municipal Corporation (PMC) also offers two modes for making the property tax payment:

  • Offline mode
  • Online mode

 

 

Offline Mode of Payment

 

In this mode, the property owner needs to:

  • Visit local office of the PMC with property details.
  • Take prescribed form from the tax payment counter and fill the property and owner details correctly.
  • Submit duly filled form to the payment processing clerk or representative at the designated payment counter.
  • Attach the payment instrument (cheque or demand draft) along with the form. Option of payment via cash may also be available.
  • On receiving the form and payment instrument, the processing clerk issues a tax payment receipt to the owner/payer that is valid subject to clearance of the payment instrument.

 

Online Mode of Payment

 

In this mode, the property owner needs to:

  • Visit the official website of PMC – https://www.pmc.gov.in/en/ptax
  • From the top menu, click on Online Services option
  • From list displayed, go to Pay Property Tax option under Property Tax Related option
  • Once you click, a new page opens that asks the owner to fill details like:
    • Property Type
    • Section ID
    • Peth ID
    • Account No.
  • Once the above step is done, owner needs to fill details like:
    • Name  
    • Ward   
    • Address
    • Previous Owner
    • Current Owner 
    • Property Description
  • On providing these details, the owner needs to mention the following:
    • Property Tax Amount
    • Mobile Number
    • Email ID
  • Now, select the payment gateway of your choice out of the given options and click on Pay Online button.
  • The online payment of property tax can be made via debit card, credit card, net banking or UPI. System may also generate a payment receipt after successful payment.
  • Once online payment is made successfully, transaction details are generated. The user or owner should record or note them properly for future reference. PMC usually takes 3 working days for updating the property tax payment records.

 

Need of the Property Tax Adviser or Consultant

 

As we have explained in several of our previous posts, property tax calculation needs to be correct in all respects and filing needs to be as per guidelines stated in the taxation laws. Only a qualified property tax consultant can do it properly for you. It is not at all advisable to file incorrect property tax returns. The PMC regularly audits the records and if any discrepancy is detected by them, they will issue demand or penalty notices to the owner(s). Most of the times it will be an extremely unpleasant experience to deal with taxation authorities. Hence, it is always a better option to take professional help in the process.

 

You may consult a competent property lawyer right away on the LegalKart platform.

BBMP property tax rates and online payment process
Tax

BBMP property tax rates and online payment process

We have been posting a series of articles on property tax and payment process available in various cities of India. In today’s post, we will share the details about the Bruhat Bengaluru Mahanagara Palike (BBMP) property tax rates and its payment process.

 

Bengaluru is often referred to as the Information Technology and Startups capital of India. The city is attracting a lot of people for high tech jobs that have high earnings potential. As a result, the city’s real estate market has seen a phenomenal growth with more and more people flocking to buy their dream homes.

 

However, as we have explained in several previous posts that, when a buyer becomes the owner of a property, the individual(s) is liable to pay property tax on annual basis to the state government. This is a mandatory requirement as laid by law. The responsibility of property tax collection in the city of Bengaluru lies with Bruhat Bengaluru Mahanagara Palike (BBMP) – the local municipal corporation of the state government of Karnataka.
 

Some of the important points that property buyers must know all the time are:

  • The official website of BBMP is https://bbmptax.karnataka.gov.in
  • BBMP uses Unit Area Value (UAV) method to calculate the property tax liability
  • The UAV depends on:
    • location of property – rural, semi-urban or urban, etc.
    • type of property – residential, commercial, etc.
  • BBMP provides online facility to property buyers for making property tax payments
  • Making property tax payment is mandatory irrespective of the fact whether the property is vacant or occupied
  • BBMP uses the tax collected for providing civic services like maintenance of public spaces, parks, roads, electrification of roads, sanitation, drainage, etc.
  • BBMP levies property tax on the following type of properties:
    • Residential
      • occupied by owner or tenant
      • vacant
    • Commercial
      • factory or go-down or warehouse
      • office or shop

 

How does BBMP calculate the property tax liability?

 

As explained above, BBMP uses the UAV method to calculate the property tax liability. As per the guidelines mentioned by the Department of Stamps and Registration, Bengaluru is divided in 6 zones (A to F), further classified in sub-divisions and ward numbers. The zone wise details are as below:

 

  • For Residential Property

 

Zone

Occupied by Tenant (Rs. per sq.ft.)

Occupied by Owner (Rs. per sq.ft.)

A

5

2.50

B

4

2

C

3.60

1.80

D

3.20

1.60

E

2.40

1.20

F

2

1

  • Commercial Property

 

Zone

Occupied by Tenant (Rs. per sq.ft.)

Occupied by Owner (Rs. per sq.ft.)

A

20

10

B

14

7

C

10

5

D

8

4

E

6

3

F

3

1.5

 

  • Vacant Property or Land Tax

 

Zone

Property Tax (Rs. per sq.ft.)

A

0.50

B

0.40

C

0.30

D

0.25

E

0.20

F

0.12

 

What is the formula used by BBMP for property tax calculation?

 

The formula used by BBMP for property tax calculation is as below:

  • Property Tax = (Gross Unit Area Value – Depreciation Value) X 20% + (Cess)
    • Gross Unit Area Value = Sum of the following:
      • tenanted property area X rate per sq.ft. X 10 months
      • self-occupied property area X rate per sq.ft. X 10 months
      • vehicle parking area X rate per sq.ft. X 10 months
    • Owner(s) may also need to take the depreciation value of property into consideration for calculating the correct property tax amount

 

Note: The property tax calculations tend to be complex and it is always right to involve a qualified and knowledgeable property tax consultant for doing it right. Any miscalculations will only invite unpleasant tax notices from the competent authorities once detected.

 

What is the process of filing BBMP property tax online?

 

A property owner can take the following steps for making the BBMP property tax payment via online mode:

  • Log in to the official website of BBMP - https://bbmptax.karnataka.gov.in
    • Any website appearing similar to that of BBPM and claiming to provide tax rebates may be fake. Property owners must exercise caution and avoid transacting on such websites.
  • The website will ask to enter the Property ID details and full name as registered in property papers to fetch the details of the property for which tax is to be filed.
    • Once the property is registered in an owner’s name, a unique property id is issued by BBMP to the owner that is used for property tax filing purposes.
  • Once you provide the property id, click on fetch and the website will display the details of the corresponding property.
  • Verify the property details properly and then click the ‘proceed’ button.
  • Website will open Form IV where you will have an option to make changes in the property details, if required. If all details are correct, then click the ‘proceed’ button.
  • Website will now open Form V. It is advisable and extremely important to carefully check the details given on Form V.
  • Once the owner verifies all details, proceed to make payment online.
  • Property tax challan is generated and the website asks the user to proceed for making the payment via debit card, credit card or net banking.
  • Once the payment is made successfully, the transaction number is generated. Owner(s) is advised to save the transaction details safely for future reference.
  • The website generates the property tax payment receipt that can be viewed, printed or downloaded after 24 hours of making the payment.

 

In a nutshell, it is fairly simple to file the BBMP property tax online. However, calculating the same properly may be a challenging and tedious task. Also, not all property owners are technology savvy and hence filing the tax online may sometimes become equally challenging.

 

Hence, it is advisable to consult a good property tax consultant who can assist you in making proper calculations and filing of property tax as per the provisions of law.

 

You may consult a competent property lawyer right away on the LegalKart platform.

What is the difference between RERA-registered, 'approved' and compliant projects?
Property

What is the difference between RERA-registered, 'approved' and compliant projects?

There are many developers who misrepresent facts in their sales and marketing campaigns by claiming that their projects are RERA approved even though they may not be compliant with the norms. Maharashtra Real Estate Regulatory Authority (MahaRERA) is now planning to take action against them.

 

MahaRERA said while such projects may be registered with the regulator and are marketed as such, they may not actually be RERA-compliant. Developers who registered their projects with the regulator but failed to submit documents that are mandatorily required to be filed quarterly, will face action for misrepresentation.

What did MahaRERA find out?


On checking the MahaRERA website, the officials found that while the developer has registered with the RERA, the mandatory quarterly details have not been updated for one or two years, and in some cases, even longer.

 

The MahaRERA official said. “We are going to start taking action against developers of such projects by issuing them notices and seeking clarifications on why action should not be taken. This must not continue and developers are expected to not misrepresent their projects by using the name of RERA.”

 

What is a ‘RERA approved’ project?

 

“There is no concept of a RERA-approved project and actually, it is a RERA-registered project.” Advocate Nilesh Gala, who practices with MahaRERA, said.

 

He said campaigns by some developers suggest that RERA has “approved” their projects so there is no impediment but that is a myth. Most developers do not comply with circulars and RERA guidelines but no action has been taken, Gala said.

 

 

How to check for RERA-registered and lapsed projects?
 

Potential home buyers can check the status of a real estate project through its RERA registration page on the official website of MahaRERA.

 

Registration of projects https://maharerait.mahaonline.gov.in/searchlist/search?MenuID=1069

List of lapsed projects https://maharera.mahaonline.gov.in/Site/1128/Lapsed-Projects

Applicable property tax rates and payment process in Kolkata
Property buying selling

Applicable property tax rates and payment process in Kolkata

In our endeavour to create awareness amongst property or home buyers, we have regularly shared details, in a simplified manner, about complex subjects such as the property tax. It is highly recommended that you read our previous posts to clarify any doubts related to property tax.

 

In this post, we are sharing the details of property tax as levied by Kolkata Municipal Corporation (KMC) and process of payment that property and home buyers can follow to paying the property tax dues.

 

In simple terms, property tax is defined as the mandatory charge levied by the local state government on annual basis. This type of tax is paid by the owner of property to the designated municipal corporation of the district in which the property is located. The tax collected by municipal authorities is used for the purpose of carrying out developmental work like maintenance of parks and roads. The tax also is used for providing civic services including drainage and sewerage management, electrification of roads, etc.

 

It was in December 2016, the state government of West Bengal passed the bill empowering the Kolkata Municipal Corporation (KMC) for simplifying the assessment and collection of property tax. As per the bill, KMC was given powers to assess the owner’s property tax liability for issuing notices to property owners for making timely payments of the mandatory tax. KMC was also authorised to penalise the defaulting and errant home owners as per the provisions of the law.

 

How is the property tax calculated by the KMC?

 

The KMC follows the Unit Area Assessment (UAA) method to calculate the property tax liability of each property located in Kolkata. The property tax calculation and payment system has been automated and the owners also have the flexibility of calculating the property tax liability for a particular year on their own.

 

As per the specified guidelines, Kolkata city is divided into 293 blocks and 7 categories based on type of infrastructure and market value of the property. The general formula used by KMC for calculating the annual property tax liability is as below:

 

  • Property Tax = Base Unit Area X Covered space or Land area X Location Factor X Usage Factor X Age Factor X Structure Factor X Occupancy Factor X Tax Rate (including the Howrah Bridge Tax, if applicable)

 

Type of Property

Tax Rate (In %)

Properties in Underdeveloped Slums

6

Properties in Developed Slums

8

Government Properties

10

Properties of Value more than Rs. 30,000/-

15

Other Properties

20

 

Note: The formula mentioned above appears complex and hence it is advisable to consult a qualified property tax professional for proper tax calculation and filing. Any error(s) committed by the owner of property while calculating self-assessment property tax is viewed as an attempt of tax evasion by the government authorities and may attracts penalties as per the provisions specified in the taxation law.

 

What is process of making property tax payment to KMC?

 

There are two modes of property tax payment that are allowed by KMC for properties that are located in Kolkata – Offline Tax Payment mode and Online Tax Payment mode. Let us have a quick look at both of them.

 

  1. Online Tax Payment Mode

Owners that are savvy with the online payment process can take the following steps to calculate and pay the property tax to KMC on their website:

  • Visit KMC official website – https://www.kmcgov.in/KMCPortal/jsp/KMCPortalHome1.jsp
  • On the left menu, look for Online Services option
  • Then go to Assessment Collection option
  • A new page will open, on which you need to select Make Online Payment
  • Once you click on Make Online Payment, you will get 3 options:
    • Current Demand
    • Outstanding Demand (Letter of Intimation, also called as LOI)
    • Fresh Supplementary
  • Select the correct option and a new page opens that will ask you to provide property tax related details like assessee number, contact number and email id.
  • Once you put these details, you will be taken to the payment gateway, where you can make payment using debit card, credit card or net banking.
  • On successful payment processing, online property tax payment receipt is generated. It is advisable to save the receipt carefully for future reference.

 

  1. Offline Tax Payment Mode

Owners who are not technology savvy and prefer making payments of tax via cheque or demand draft or cash, can use this method of payment. Following steps can be taken for payment of property tax:

  • Visit the local municipal corporation office
  • Take the tax payment form from the designated counter
  • Fill up the form completely and correctly
  • Submit the duly filled form to the processing clerk or representative
  • Handover the payment instrument along with the form – cheque or demand draft or cash
  • Collect the tax payment receipt as issued by the processing clerk or representative

 

Why it is important to take help from a qualified property tax expert?

 

For a common individual, calculating the property tax can be a very complicated and tedious task. Any error made in the self-assessment calculation by the owner will increase the risk of getting penalty notices once the error is detected by the municipal corporation. The reason is simple – any incorrect tax amount paid by the owner tantamount to tax evasion in the eyes of the taxation authorities. Hence, it becomes only pragmatic involve a competent property tax consultant for doing this difficult task for you as the owner. The property tax consultant will not only correctly calculate the tax liability but will also file the tax in compliance with the law.

 

As they say, it is always better that an expert handles the job and do it well. In case you are facing difficulties calculating your property tax liability then you may consult a competent property lawyer right away on the LegalKart platform.

Buyers can complaint against a builder or broker under Gujarat RERA (GujRERA)
RERA Consultation

Buyers can complaint against a builder or broker under Gujarat RERA (GujRERA)

An important point that we need to remember about the RERA Act is that 22 Indian states and 6 union territories have implemented the guidelines since the law was passed.

In today’s post, we are sharing brief details of Gujarat RERA (GujRERA) and the process of registering a complaint against errant builders, agents and brokers.

Brief Background about GujRERA

The full form of GujRERA is Gujarat Real Estate Regulation Authority. The rules came into force in the state of Gujarat on 4th May 2017. The rules were implemented by the state government of Gujarat to monitor the real estate industry with a view to safeguard the interest of property and home buyers. As per directives mentioned in the RERA Act, a local regulatory authority – GujRERA – was setup by the state government of Gujarat with its headquarters based in Gandhinagar.

Also Read:  How to get your property valuation done to ascertain a correct market price

Some of the important points to note about GujRERA are as below:

  • The official website of GujRERA is https://gujrera.gujarat.gov.in
    • It is important to note that there may be websites with similar names, look and feel. These websites may ask for a high fee for registering buyer complaints and promise quick settlements with the builders. However, buyers must know that any website other than mentioned above is absolutely fake and illegal.
  • GujRERA is entrusted with the responsibility of:
    • bringing in accountability and transparency in the real estate industry of Gujarat.
    • providing detailed information about registered or delisted projects, properties, builders and agents.
      • The buyers can visit the official website for checking the details before making a booking with the builder or involving a broker or agent in the property buying process.
  • Type of projects that can be registered under GujRERA include:
    • Residential
    • Commercial
    • Group Housing Societies
    • Plotted Developments
  • GujRERA provides an option of registering complaints against builders, brokers or agents who do not deliver what they had promised while signing a deal with the property buyer.
  • GujRERA also acts as an Appellate Tribunal for aggrieved buyers and hear cases for faster dispute resolution as per provisions stated in the RERA Act.

Also Read:  Stamp duty and registration charges are mandatory: Buyers should take utmost care on this front

What is the process of filing a complaint in GujRERA?

The process of registering a complaint is fairly simple. Any aggrieved buyer can follow the below mentioned steps:

  • Visit the official website of GujRERA (link is given above for reference).
  • On the homepage, the user will see a Citizen tab as highlighted in green colour.
  • Go to the Citizen tab and a menu will appear, showing the Complaint option.
  • Click on ‘Complaint’, the website will ask to login if buyer is an existing user of website using username and password.
  • If buyer is a new user of website, he or she will have to create an account (user name and password) for logging in.
  • Once logged in, the website will open a detailed complaint registration form that buyer needs to fill.
  • Along with the duly filled complaint form, buyer will also be required to provide necessary and proper documents as evidence.
  • Once all the required information is filled and documents are attached, click on the submit button.
  • User/buyer will be taken to the payment gateway, where he or she is required to pay Rs. 1000 as the complaint registration fee.
  • Once the payment is made via debit card or credit card or net banking, the website will generate an acknowledgment number and complaint is officially registered with GujRERA.
  • It is important to note that the aggrieved buyer(s) should keep the reference number or acknowledgement copy safely for future reference.
  • The buyer can visit the GujRERA website for checking the status of the complaint as well from time to time.

Readers also read: Buyers in Maharashtra can verify builder details on MahaRERA before booking the property

Why a property buyer needs to consult a property lawyer?

The matters related to property disputes, especially with the defaulting builders, tend to be extremely complex, stressful and time taking. Many a times, property buyer(s) may also hesitate in involving a property lawyer and tends to think that he or she can tackle the issues themselves. However, the bitter realities are that if a buyer is not able to present the case properly and as per provisions of the RERA Act in the appellate tribunal, it is highly likely that the case will be a lost cause for the buyer. Reason for this is simple – the errant builder(s) will for sure use a competent lawyer as a strong shield to defend themselves at all times. This is will only add to the ongoing level of stress on a property buyer, who is facing the risk of losing the entire life savings.

Read also:  Property Registration Online Procedure and New Rules in India

Hence, it is only advisable and practical to deploy a professional, competent and verify the project or builder to:

  • prepare the buyer’s case properly
  • file the case as per provisions of the law
  • present the buyer’s case in appellate tribunal as per provisions of the law
  • assist the buyer at each step of legal battle with the defaulting builder
  • help the buyer in getting a proper and timely resolution from the designated competent court of law, which is GujRERA in the case of the state of Gujarat.