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Mumbai residents not happy with new property tax system

1 Comment Sub Category:Court,Legal,Mumbai,Property Tax,Realty News Posted On: Feb 06, 2013

Bombay High CourtUnconvinced with the new way of calculating property tax, citizens in Mumbai are planning to move to Bombay High Court regarding the same. The new method is based on  the capital value-based system.

The major concern of the residents lies with the ground realities which affects a property’s price, are not taken into consideration in the ready-reckoner rates. They claim it is where the major fault in the system lies.

The new method of calculating tax and the transition was aimed at reforming the current municipal tax system, due to which a major cause for concern has risen.

Furthermore, the senior citizens are even concerned about the receipt of huge property tax bills with retrospective effect from April 2010.

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 a 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.

Already, the faulty calculation and not taking into account the base price is being contested in an Aurangabad court. Residents who are not happy with the civic body’s reasoning may move to the High Court.

Advanced Locality Management and Networking Action Committee (ALMANAC), Chembur have said that they will move court with the help of residents of Marol. They feel paying an extra amount as tax is totally unacceptable.

Also, the citizens feel that the civic body is taking builders’ side and the whole system is not rational.

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Related Real Estate News:

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Mumbai suburbs against property tax bills

 

One Response to “Mumbai residents not happy with new property tax system”

  1. [...] Mumbai residents against property tax plan to move HC  [...]

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