Property Tax : Mumbai
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.1075