Guidelines for seeking 40% rebate in property tax

Background

1. In 1970, the PMC law committee passed a proposal to give concessions to those property owners who occupy their own properties. 

2. The civic administration gives a 40% tax rebate to such property owners. However, the department said there is no need to continue with the concession as they are facing revenue losses due to the rebate (Oct 2021 - post covid crises)

3. The state government also observed that the PMC appears to be giving more property tax concessions than any other civic body. At present, there are 12 lakh property owners in the city. As many as 10 lakh properties are residential and the remaining are commercial and plots. Out of the 10 lakh residential properties, around 5 lakh receive the 40 per cent rebate in property tax.

4. If the property is rented out, then the owners have to pay full property tax. All concessions given to properties have been removed from 2018 after a state government decision and many citizens have received retrospective bills with arrears added.

5. As on 5 May 2023 the PMC has appealed to the citizens that they need to submit a form PT3 to continue to avail this rebate, else they shall levy a full tax liability on the said property owner (reference)

Current Situation

1. Starting 15 May 2023, property tax bills have been issued to all owners. 

2. Check your bill here - https://propertytax.punecorporation.org/prop_tax_bill.aspx

3. Check past bill payment history and taxable value here - https://propertytax.punecorporation.org/PropPaidDetail.aspx

4. In SOJ A1 A2, following are the indicative figures AFTER rebate, provided you do not have arrears from previous years.

   • 2BHK - 12000-12500

   • 2BHK refuge - 11500-12000

   • 2BHK with garden - 13000-13500

   • 3BHK - 15500-16000

   • 3BHK with garden - 17000-17500

5. If your property tax bill is higher by 25-40% you will need to complete the following procedure

Action items for SOJ A1 A2 flat owners whose property tax bills are high

1. Pay your existing bill - yes, the high amount bill is to be paid - and the excess amount AFTER rebate will be adjusted in forthcoming years.

2. Print the documents and fill by hand with blue pen. Block letters only.

3. If you have bought the flat from previous owner, you will need to ensure that new (current) owner name reflects on the property tax bill.

4. Fill the attached form PT3 - 3 pages - both English and Marathi forms are available, sample how to fill is provided

5. Fill the society NOC - 1 page - (3 copies) - (1 copy society, 1 copy owner, 1 copy PMC)

6. Attach xerox copy of index 2

7. Attach xerox copy of latest PMC property tax bill + receipt of payment

8. Attach xerox copy of latest light bill + receipt of payment

9. Attach xerox copy of address cum ID proof - any one (voter card, passport, ration card, gas card / latest MNGL bill, driving license)

10. Submit above documents to security supervisor for sign and stamp from the secretary

11. You can then submit all above documents to any PMC ward office / tax collection center (locations) - with Rs 25 PMC office charges

12. We recommend you submit the form as soon as possible, last date being 30 Sep 2023.

Rebate is not applicable if

1. If you have already been receiving a 40% concession on your Property Tax, there is no need to apply again. Bills with concessions for the 2023-24 fiscal year will be available after 15th May 2023.

2. If your have more than 1 property within PMC limits that you pay property tax for, seek rebate for the one which has maximum property tax bill - you can seek 40% rebate on only 1 property  within PMC limits

3. If your flat is rented out or on lease, with or without rent agreement, you cannot apply for this rebate

4. If your flat is vacant / unoccupied, you may still apply for this rebate, discretion would lie on PMC to grant the rebate or not, upon inspecting your MSEB light bill

5. Homeowners who had earlier availed the concession, but have paid non-discounted increased bills from 2019 will receive a refund of the excess amount in four phases.

6. Homeowners who were previously ineligible for this 40% discount (due to having tenants or using the property for commercial purposes, etc.) will have to apply for the exemption if they have discontinued commercial use and started using the property for residential purposes.

7. For constructions that have received their completion certificate after 01/04/2019, homeowners will have to apply for the 40% exemption in Property Tax.