Property tax

SAMIR SHAH (Querist) 19 March 2020 This query is : Resolved
i had purchased a premises in March 2016 in mumbai which was commercial. i converted it to residential flat and accordingly it was changed in bmc's record and i started getting property tax on residential basis. now bmc has come down with differential liability on the basis of capital value for the period from 2015-2016 till date there are 2 queries:-
1. 4 flats are of same size as my flat all residential but capital value for all the flat differ. is it possible?(its 4 floor bldg. with lift)
2. while considering the property tax which is considered as 0.775% of capital value for residential units, the other flat owners are given a benefit of levying only 40% additional tax over there existing tax. but in my case since the unit was previously used for commercial purpose and the tax was more than what it is now for residential purpose the benefit of 40% additional tax over existing tax considering the unit as residential is not considered and given. I am levied rate at 0.775% of capital value directly.

Please do guide at the earliest

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A Mumbai property owner is seeking clarification on a differential property tax demand for a commercial premise converted to residential. They question why flats of the same size have different capital values and why they are not receiving the same 40% additional tax benefit as other residential units, despite having official permission for conversion. Advice suggests that if the conversion was done with due permission, they should not be discriminated against and should formally represent their case, potentially escalating to legal action if necessary.

Raj Kumar Makkad (Expert) 19 March 2020
1. Yes, it is possible because the capital value of the commercial property always remain in multiplication of the residential.

2. You cannot claim equity if you had not converted the property residential from commercial with due permission.

SAMIR SHAH (Querist) 19 March 2020
thanks for your instant reply sir.

1. all the flats said are now residential with same area then too capital value differs.

2.All the conversion from commercial to residential is done with due permission from society as well as bmc.

Raj Kumar Makkad (Expert) 19 March 2020
If conversion is on the basis of due permission then you cannot be discriminated at any cost. Reply the said notice wisely and if don't get fruits of the reply, engage a local lawyer, serve a legal notice and then challenge the same before competent court of law.

T. Kalaiselvan, Advocate (Expert) 20 March 2020
1. It is possible for the authorities to levy the charges as per the commercial value of the property.
2. Since you have got it converted to residential property, based on the documentary evidences of the competent authority approving the conversion of the property from commercial to residential, you may make a representation in writing to the competent authority explaining the circumstances and quote the rules that the property should be assessed on the basis of the residential status alone and not on the commercial basis.
Let them cite the relevant rules and refuse to accept your request, you can approach high court with a writ petition seeking to set aide the orders of the commissioner in this regard and pass directions to the authorities concerned to assess the property on the residential value alone since the conversion of the same was approved by the authorities concerned

Rajendra K Goyal (Expert) 20 March 2020
Discrimination can not be done by the Municipality. Reply the notice through your lawyer and deny the liability. If Municipality proceeds, take help of law.

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