No property tax hike for 81% of homes in Mumbai

Even as clamour grows over implementation of the new capital value-based property tax system, which leads to inflated bills, records with the Brihanmumbai Municipal Corporation (BMC) show that 81% of the residential Property in Mumbai are unaffected by the system.

In fact, for 27% of these residential properties, the tax bills have reduced as compared to the old rateable value-based system.

Owners of these properties, mostly new buildings in the suburbs, can seek refund from the civic body for the excess tax they have paid under the old system for the past three years.

The change in system has affected only 19% residential properties in the city, with many residents of old buildings and island city having to pay more tax.

“To make an application for refund, citizens can submit the ECS form to the local ward office,” said Rajiv Jalota, additional municipal commissioner. “The new system aims to rationalise tax across the city and bring parity in tax collection.”

The BMC will also adjust the additional tax paid in the subsequent bills.

“For citizens who do not wish to apply for refund now, the amount will be adjusted in their next year's bills,” a senior official from the BMC's assessment and collection department said.

Source (Poorvi Kulkarni, Hindustan Times, 3 Feb 2013, Mumbai) : "No property tax hike for 81% of homes in Mumbai."