MUMBAI: The Brihanmumbai Municipal Corporation (BMC) has to refund Rs 895 crore to citizens who have paid extra property tax based on provisional bills sent to them since 2010, before the final ones based on the capital value system were sent early this year.
Nearly 86,000 cases are eligible for a refund, as the final bills generated under the new system are lower than the provisional ones. The refund is applicable to approximately 20,000 of the 2.71 lakh properties BMC sent bills to.
Senior civic officials said the refund will either be sent to them or will be adjusted in this year’s final bills, depending on the amount.
“We were supposed to send the refunds by June 30. If there is a delay, we will have to pay a 6% interest on the refund amount,” said a civic official.
Of the 85,000 bills for which a refund is due, at least 39,000 bear amounts less that Rs 1,000. Of the 39,000 cases, the refund for most is Re 1-Rs 5. The refundable amount for these 39,000 cases totals Rs 21 lakh, which BMC will adjust in this year’s bills that are being sent to all.
Most cases of refund are from the suburbs, with the western suburbs being higher. BMC has refunded Rs 70 crore in 210 cases in the eastern suburbs, while Rs 200 crore has been refunded in the western suburbs.
It was issuing provisional bills on the basis of a property‘s rateable value since 2010, and the tax has to be adjusted depending on the final bill sent this year. Citizens whose property tax has increased after BMC implemented the new capital value system can pay their bills by September 30.
Under the new method, property tax is being calculated on the basis of the capital value of the plot. Earlier, it was computed on the basis of rent a property could fetch.