BMC Set to Meet Rs 6,200 Crore Property Tax Target for FY25

BMC Set to Meet Rs 6,200 Crore Property Tax Target for FY25

BMC Set to Meet Rs 6,200 Crore Property Tax Target for FY25

Mumbai’s civic body, the Brihanmumbai Municipal Corporation (BMC), is on track to meet its property tax target for the financial year 2024-25, having already collected Rs 6,011 crore or 97% of the revised target of Rs 6,200 crore by the morning of March 31. The collection this year is the highest ever recorded by the BMC, surpassing the previous year's total of Rs. 4,856 crore, which was lower due to delayed bill issuance.

BMC officials are confident that by the end of the day, the remaining 3% of the target will be met. A significant portion of this year’s collection includes overdue payments from the previous year, where property tax bills had been issued but were not settled on time, contributing over Rs. 1,600 crore to this year’s collection.

In the 2025-26 civic budget, the property tax revenue target for FY 2024-25 was revised upward to Rs. 6,200 crore, an increase from the earlier projection of Rs. 4,950 crore. For the upcoming financial year (2025-26), the BMC has proposed a target of Rs. 5,200 crore. Property tax remains the largest source of revenue for the BMC, with taxes collected from over 9 lakh properties across Mumbai.

The abolition of octroi and the introduction of GST led to a shift in the city’s revenue reliance, placing greater emphasis on property tax collections. Former BMC corporator Ravi Raja emphasized that collections could rise further if the BMC took stronger action against tax defaulters, including large companies, mills, and developers who delay payments. He suggested that BMC could seize properties of persistent defaulters, using the collected funds for the benefit of Mumbai residents.

Interestingly, BMC has not increased property tax rates since 2015, although rules mandate rate hikes every five years. Due to the COVID-19 pandemic in 2020, the proposed rate increase was deferred, and subsequent attempts to raise rates have been stayed by the government.

About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

LinkedIn - https://www.linkedin.com/in/sandeepsadhmpe/