Land Owners Of Upto 500-Sqft Don't Have To Pay Property Tax In Mumbai

Here is good news for those living in Mumbai. If you are living in a unit in that falls under the jurisdiction of the Birhanmumbai Municipal Corporation (BMC) and measures up to 500 square foot (sqft), you are exempted from paying property tax.

The Maharashtra Cabinet on March 8 to approved a proposal that was moved by the BMC earlier. 

On the same day, the Cabinet also decided to give tax benefits to co-operative housing societies on the government, semi-government and private land, to encourage them to go for self-re-development. Apart from that, it allotted land to 103 societies for a period of 99 year lease. These societies will now be on ownership basis. Due to the decision, residents can sell off their houses or go for re-development.

Last year, Maharashtra Chief Minister Devendra Fadnavis had told the state Legislative Assembly that if the BMC came up with a detailed proposal to extend this benefit to buildings measuring 750 sqft, the state government was willing to give it a go-ahead. 

“Unlike other civic bodies, BMC's finances are good and it can afford to give such concession to the residents," the CM had said.

The move to provide property tax waiver to flats measuring up to 500 sq ft would benefit about 17.58 lakh property owners. If the waiver is extended to those living in homes measure 700 sqft, 21 lakh more people will not have to pay property tax. The government exchequer will have to bear a loss of Rs 70 crore an annum to extent the largesse.

The Municipal Corporation of Greater Mumbai (MCGM) collects property tax of about Rs 5,500 crore every year. However, with the latest move, the authority will have to take a revenue hit of about Rs 350 crore.

With inputs from Housing News