New property tax system in Mumbai discussed by owners
With the new property tax system in place, the Property Owners’ Association (POA) has called for a meeting, in which they asked the BMC to reconsider the new tax system.
The new capital value-based property tax system has not gone well with the owners/landlords as it does not offer any cap for buildings that got occupation certificates after April 2010.
The new system has brought in legal disputes and has caused a recurring liability on owners and even tenants. In five years, when the cap on existing tax is removed, it will increase by 40% which will be very difficult for the owners to bear.
Under the Maharashtra Rent Control Act, tax has to be paid by tenants through landlords. If it is not paid within time, then the civic body can attach the property of the landlord and if tenant does not pay the tax within time, then the BMC will attach the tenancy and not the entire property in Mumbai.
Now, the housing societies in Mumbai are confused. Many societies have not even circulated copies of the bill to tenants or flat owners, recovering the tax amount is far from thinking. Due lack of clarity, the residents are worried whether the
BMC would charge a 2% penalty for delayed payments.
Action for Protection of Tenants Rights has requested the BMC to open a facilitation centre in each ward office to verify the data and clarify issues voiced by tenants to save potential litigation.
As per data, the civic body has to send property tax bills to about 2.7 lakh properties in Mumbai with march 31 as deadline.
Also, in case of office spaces, out of 92,000, 80,000 will have to pay higher tax under the new system as compared to what they paid under the previous rateable value system.
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