Property Tax Dues

April 9, 2020April 12, 2020 Newsline Times 0 Comments

Property tax dues of BMC in Mumbai

BMC has initiated the process to auction 228 properties for defaulting on payment of property tax. you have to clear your dues even if you have a dispute with the municipal corporation on the basis of calculating tax. BMC officials say that one cannot avoid paying the dues due to pendency of dispute, according to the rules.

Among the other defaulters are several builders whom the BMC termed as “habitual defaulters”. A builder’s representative said that the slowdown in the real estate market has impacted them. “Payment of property tax dues is not a priority for several of them,” an official said.

Most of the property tax dues are from the western suburbs (Rs 255 crore), mainly the Bandra-Malad belt, followed by the eastern suburbs (Rs 192 crore) and the island city (Rs 133 crore).

The BMC’s property tax collection has been dropping in the last few years due to defaults and this year, the figures will drop further as the government, as part of its election promises, has decided to exempt flats measuring below 500 sq ft from payment of property tax.

Property tax collection is the biggest revenue source for the BMC ever since octroi was abolished. In the last three quarters, property tax collection showed a 19% deficit compared to last year as the BMC had issued no residential bills amid confusion over a waiver policy for homes under 500 sq ft.

All collection has been only from commercial establishments, an official said. The municipal body had not issued property tax bills to residential units as it has not calibrated its software and other systems to exclude units under 500 sq ft while generating the bills. The BMC started to issue the bills on flats size measuring more than 500 sq ft only last month.

STEPS BMC TAKES WHILE AUCTIONING THE PROPERTIES

> NOTICES: BMC sends notice to defaulter if they fail to clear the dues within 90 days.

> BMC then sends letter to defaulter.

> After 21 days, attachment notice is issued.

WHAT IS ATTACHMENT OF PROPERTY

> For commercial property BMC disconnects both water and power supply.

> If its a residential or educational property, BMC bars its sale without clearing the dues of property tax on it.

> Defaulters can de-attach their properties by paying half of due amount and have to clear balance amount in next property tax bill.

AFTER THE PROPERTY ATTACHMENT

> BMC gives advertisements in newspapers about defaulters and pending dues details.

> BMC auctions assets in the property or even the property to recover its property tax dues and frees the rest of the property.