Pay double property tax if own illegal property

Pay double property tax if own illegal property

By Accommodation Times News Service

Be ready to pay double property tax if you own an “illegal” property. The Brihammumbai Municipal Corporation will start collecting penalties for unauthorized structures at twice the property tax levied on the entire area. A recent circular directed by BMC its assistant and assessor and collector to get a list of all the unauthorized structures from assistant municipal commissioners of all the 24 wards. These assistant and collector will issue notice to the respective owners to pay the penalty. Deputy Municipal Commissioner Milin Sawant said, we have issued the circular, we are expecting the notices to be issued soon. Former commissioner Sitaram Kunte had levyed this penalty in his budget speech last year under the section 152 (A) of the Mumbai Municipal Corporation (MMC) Act in 2010. The act states that if you have made illegal extension for 300 square feet you will have to pay property tax for 600 square feet; one also has to pay arrears for the last five years.

BMC officials said that citizens who are having illegal property will have to pay retrospectively from 2010, the year the amendment was introduced. In 2010 the BMC also shifted from rateable value based system to capital value based system for collecting property tax. Under the capital value based method property tax is collected based on the market value of the plot.

When contacted an official he said, the assessment will be undertaken by the assistant commissioners and the building and factory department of the respective wards based on former approvals. We will seek information from the ward offices who know the area well. If a particular structure has not got relevant approvals from the authority it will be deemed illegal.

ases. In the first phase we plan to rehabilitate 600 tenants and 300 commercial tenaments.


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