Mumbai property tax payment dates extend by 3 months
Brihanmumbai Municipal Corporation (BMC) has given a relief to the residents of Mumbai by announcing an extension in dates for payment of property tax.
Now, the last date for paying the new capital value based property tax is extended by three months. However, an official announcement is yet to be made.
For many days, citizens had been in a hassle over the payment of the new property tax after receiving the bills. The bill also included arrears since 2010, which made the total amount look rather daunting.
Earlier, the last date of paying the bills was March 31. But now after many protests by the citizen groups and activists, the extension has been considered by the authorities. Municipal commissioner has decided on the extension of the date by using his special powers.
As per a BMC official, many complaints had been received in the past regarding property tax calculation and payment of property tax bills. They said that paying bills for three years with retrospective effect would put too much financial burden on them.
For the past two years, bills were sent on the basis of property’s rateable value. However, with the new calculation system by capital value, many have protested as the property tax of several buildings has increased.
Earlier, the tax was computed on the basis of rent paid by tenants. As per the new system, the BMC has calculated it on the basis of the capital value. Capital value is calculated by taking into consideration elements such as age of the building, area of the property, nature of construction, ready reckoner rates and so on.
Around 2.7 lakh properties in Mumbai have got bills according to the new system. Along with the bills, notices were also sent so that citizens can point out errors in the bills to the civic body and get them corrected.
Till date, around 30,000 complaints have been received by the BMC asking for amendments/corrections in their bills which were calculated.
The citizens feel that the base value which BMC has considered to calculate capital value of a property is faulty. It is linked to the ready-reckoner rate which is decided by the state government’s town planning department.
The process of deciding ready-reckoner includes clubbing of 400-500 types of plots and are given a uniform rate. The price of a property in Mumbai is dependent on factors like type of construction, facilities and amenities, surroundings (proximity to airport, railway tracks) and noise pollution.
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