Published On: Sat, Aug 8th, 2009

Property Tax : Mumbai

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From July 1,2008, it will be mandatory to property owners, who rent out their property in Mumbai, to pay 83 per cent of half of the rent amount as property tax to the Brihanmumbai Municipal Corporate (BMC).
The BMC Act 155 makes it mandatory for landlords to submit detail of rent agreement. The act has come in the action after huge losses in unrealised property tax from rented properties for about seven years. Currently, people who rent out their properyt submits details of rent agreement only at the sub-registrar’s offices in the city and most of them do not even bother to inform BMC.
Municipal Commissioner Jairaj Phatak said that many peorperty owners owned multiple flats and provide fake and incomplete detail at sub-registrar office to evade tax. The BMC has decided to take action on errant landlords, and thretened to cut off water supply and seal properties of those who do not pay the due tax, said V Radha, Joint Municipal Commissioner.

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  1. Mita Mehra says:

    Is V Radha (Joint Municipal Commissioner) in the BMC mad? Does this person mean that people who give their flats out on leave and license in Mumbai are not supposed to earn any income from the rent of the flat? In effect the rediculous BMC property tax system requires landlords to pay 41.5% of annual rent to BMC as property tax. Further, the landlord also pays income tax of 30%. What is left is 28.5% of the annual rent as income. From this 28.5 % of the annual rent the landlord pays 1 month rent as brokerage to the broker. What rent is remaining after making all these payments. I would like to ask Jairaj Phatak, Pathan and Radha, do they in their heart of hearts believe that this high property tax on flats given out on leave and license is fair? Also, societies are paying the BMC officials from the collections and assessing department to overlook flats on leave and license. This is a apt way of increasing corruption in the already very corrupt BMC.

  2. INQALLAB says:

    Please tell me the appropriate advocate to fight against this LEGAL EXTORTION OF CHARGING HIGH PROPERTY TAX 

  3. jitendra says:

    Mr Inqalab,what final action you have taken to get out of this rut.Did you manage to get hold of a lawyer.Please write so that all are benefitted.
    jitendra

  4. arif says:

    What about those who are for some reasons completly dependable on rental incomes like senior citizens,handicapped and with chronic medical conditions spending thousand of rupees a month ?

  5. Kadir says:

    We are cheque paid for Gram Panchayat in the for of tax bt can you tell me is is property tax or not?

  6. Dharm Parikh says:

    Well Y dont you look at the other side. If the taxes are increased to these levels, all our rich class will invest their money into other financial investments.
    Mumbai is presently facing a huge shortage of affordable housing…Mainly due to all our rich people investing into property making it out of reach to buy for the common man. I think its a great move and such a move will encourage in affordable housing.

  7. Rakesh says:

    Hi,
    I would like to know whether Bombay High Court granted interim stay on Service Tax has been removed or still it is in stay?

    Thank you

  8. Aspi says:

    When you give shop on rent in Mumbai,what tax do you have to pay and at what percentage?

  9. farida lakha says:

    i would like to know [1] whether any stay has been granted by judiciary against BMC in respect of recovery of property tax on rented property [2] person affected by this may pl contact me over email.

  10. Devendra says:

    My dad had sold his flat but society is not giving noc reason telling you cannot sell your flat within a years time is that true.Second thing now we had done stampduty & registration so can he cancel that document if yes what will be the charges. 
    Waiting for your kind reply asap.
    Thank You.

  11. Ashit says:

    has mumbai high court granted approval on this high tax charge by BMC or the matter is on hearing. what should i do further as this is totaly unjustice for property owner.

  12. Supratik says:

    Properties are no longer called an asset. It has became a huge liabilities now a days in Mumbai.

  13. DESSAI says:

    Join Property owners association(tel 23853436) to get information daily.Join the mass protest to be held in 1st week March in front of Municipal office VT.Lawyers feel that we raise our v0ice against Corporaters And MlAs who have proposed this tax.

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