Get set to pay more tax on your property; BMC sends out bills

The Brihanmumbai Municipal Corporation (BMC) has started sending out property tax bills for the current year, calculated on the basis of the new capital value system.

The Brihanmumbai Municipal Corporation (BMC) has started sending out property tax bills for the current year, calculated on the basis of the new capital value system.

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The bills have been calculated retrospectively from 2010. This means you will have to pay arrears starting April 2010, and you have less than three months to pay the amount.

On failing to do so, the civic body plans to levy a penalty, wherein you will have to give 2% of the pending amount each month.

The civic body has also announced that citizens would get 21 days within which they can write to the BMC if their property has been incorrectly classified in the records.

According to the rules of the new system, property tax paid by residential properties can double, while tax for commercial properties can increase three times.

However, the civic body has claimed that only 17% of the residential properties are going to pay more tax, while 59% will pay the same amount.

Officials from BMC’s assessment and collection department said extending the deadline was not under consideration yet.

Factors that determine the capital value of your property include user category, base value, nature of the building, floor number etc.