Latest bmc tax for leave and licnse flats in mumbai
Atish
(Querist) 24 July 2012
This query is : Resolved
Dear Sir,
There was a legal issue going on in the court of Mumbai as the BMC was charging an exhobitent tax for those flats which were given on Leave and License.
I believe there is a judgement coming ythrough now that the charges will be on some pro rata basis on the property value.
As I am not in Mumbai I am not well versed with what has been happening.
In case there is a web site that could give me the information I will appreciate it.
The property I am enquiring about is in South Mumbai and is a society constructed between approx. 1975 to 1980.
Would it be possible to inform me of what would now be the tax on an approx. 1350sq.ft area flat in that area on per year basis.
Regards
Atish
ajay sethi
(Expert) 24 July 2012
Rajshri Mehta, TNN Sep 21, 2011, 04.02am IST
According to the BMC proposal, property tax would be computed at 1.95% of the capital value for offices, 3.91% for banks, and 0.41% for residences where there is a metered water connection. The rate of tax would be as high as 8.44% of the capital value in old buildings that do not have an occupation certificate or a water connection.
The new tax would be calculated on the basis of the current market value of the property (the capital value) based on four factors—price, area, age, and the type of property. Currently, Mumbaikars are charged according to the rental value of their property; in other words, property tax is calculated on the basis of the hypothetical rent it would fetch.
The proposed tax is very high compared to the 0.19% tax for all properties recommended in a report submitted by the Tata Institute of Social Sciences, the BMC-appointed consultant. Property experts estimate that taxes for new residential buildings would translate into as much as Rs 20.24 per sq ft per month, which means Rs 20,240 for a 1,000-sq-ft flat. The lowest would be in the Borivli area where one would have to shell out Rs 2,690 at Rs 2.69 sq ft per month for a 1,000-sq-ft flat. Similarly, for new offices, the highest municipal tax would be Rs 120 per sq ft or Rs 1,20,000 for 1,000 sq ft; and the highest municipal tax for banks would be at Rs 290 per sq ft or Rs 2,90,000 for 1,000 sq ft. The proposed tax is several times higher than that in Delhi, Hyderabad, Bangalore and Kolkata.
