Properties, Homes & more

Property tax in the island city of Mumbai (from Colaba to Sion and Mahim) will double from the next financial year. But many residents, who live in old buildings, have little to worry about as they currently pay a measly 50 paise per sq ft. Besides, for houses less than 500 sq ft, there will be no change in property tax.

While the new capital value-based system will be introduced in the island city initially, it will be implemented in the suburbs a little later. Civic officials, however, refused to commit on the date. In the city, the property tax will only double as the law clearly states that it cannot be more than two times the present tax. In the suburbs, on the other hand, it will reduce by at least 30%.

At present, suburban residents pay as much as Rs 4 per sq foot as property tax. Property tax is the second largest source of revenue for the Brihanmumbai Municipal Corporation (BMC). The BMC has prepared a digital map of the city, mapping all 3.15 lakh buildings. It will use the maps to prepare the new property tax bill. Under the new system, property tax will be charged based on the age of the building, type of construction and usage.

The civic body will soon appoint an agency, which will survey every building to ascertain the exact area, age and other factors. This information will then be super-imposed on the GIS map. Once the values are known, it will be easy even for citizens to calculate their property tax. They can then make the payments online. Only in the case of a dispute, where the civic body and the citizen do not agree on the amount, will they need to approach the BMC.