After dithering for three years, the civic body on Thur-sday decided to enforce the new property tax rates in Mumbai. It means that most people living in the island city will pay higher tax, while those in the suburbs will get some relief.
The property tax you pay will be based on the capital value of your flat, which will be calculated using the state’s Ready Reckoner rates. The capital value will be revised every five years, but by not more than 40%.
So far the property tax had been calculated as per the rental value of your property, which meant that the tax on properties in the suburbs and new properties across Mumbai was higher than that for old buildings in the island city protected under the Rent Control Act.
Many residences on the island city will have to pay up to two times more, while for commercial units it could be up to three times higher. Flats under 500 sq ft are exempt from the hike.