How to Pay PMC Property Tax Online and Offline?

Introduction

It is the Pune Municipal Corporation (PMC) that collects property tax from owners of residential and commercial properties within the limits of the city. Since these taxes form the second-largest source of revenue for the PMC, they are used for infrastructure development, like schools, improvement of sanitation, maintenance of roads, other civic amenities, etc. Property tax of PMC is a compulsory tax and they charge fines for the delay in payments.

This provides for the continuing development of the city and improvement of public services. Timely payment of property tax does not only ensure penalising the taxpayers but also aids in streamlining the civic functions leading to better amenities for citizen.

Methods to Pay PMC Property Tax

Tax payment process has become easy and convenient with PMC as it allows both online and offline payments. The e-Governance system, through which property owners can now make payments online from anywhere, is the thumbnail version of the entire process, which used to be cumbersome. It is a system that is intended to conserve time and energy as well as provide open transaction details. Taxpayers also have the option of visiting specific offices to make payments in person, a preferred way for those who may not be comfortable with digital payments. As a result, PMC consistently integrates new payment gateways to improve the user experience, including for online transactions, as well as for offline collection centres.

PMC Property Tax Online Payment Process

Follow these steps to pay your property tax online:

• Visit PMC's Official Website - Go to the PMC website, which opens in Marathi by default. Change the language to English using the drop-down menu at the top right corner. Ensure you are on the official government website to avoid fraud.
• Select 'Pay Property Tax' - Click on 'Online Services' and then select 'Pay Property Tax' under 'Property Tax Related'. A prompt will appear regarding redirection to an external source. Click 'OK' to proceed.
• Click on 'Pay Online' - This will open a form where you need to enter your details.
• Fill in the Required Details - Enter your Section ID, Peth ID, and Account Number, then submit the form. Double-check the details entered to avoid errors.
• Make the Payment - Once the property owner details appear, enter the amount, email ID, and mobile number. Choose a preferred payment gateway and complete the transaction. Save the transaction confirmation for future reference.

Payments can be made via debit card, credit card, UPI, net banking, or digital wallets.

PMC Property Tax Offline Payment Process

For offline payment, property tax can be paid in cash, cheque, or demand draft made in favor of 'The Assessor and Collector of Tax, PMC Pune.' Payments can be made at:

• Any of the 30 PMC ward offices
• Citizen facilitation centers linked with PMC
• Authorized branches of HDFC Bank, Cosmos Bank, ICICI Bank, and Bank of Maharashtra
• Self-payment kiosks set up by PMC
• Special mobile counters introduced during peak collection periods

To ensure a hassle-free experience, taxpayers should carry necessary documents, such as previous receipts or a copy of their tax bill, when visiting offline centers. Additionally, PMC officials are available at these centers to assist taxpayers with any queries related to tax assessment, payments, and rebates.

How to Calculate PMC Property Tax?

The Pune Municipal Corporation (PMC) collects property tax according to the property's capital value, using a formula that takes into account the location, usage and built-up area among other factors. The formula is:

Property Tax = Value of Property x Rate

Where: Capital Value = Base Value * Built-up Area * Use Category * type of building * Age Factor * Floor Factor

Self-occupied properties and rental properties have different bookkeeping capital values. PMC has also launched an online property tax calculator for taxpayers to use to check their dues. Knowing whether to expect a payment of taxes or whether an appeal may be necessary can be vital for property owners. Determining tax amounts also allows owners to plan their budgets appropriately, minimising the risk of late payment and financial penalties.

PMC Property Tax Payment Deadlines & Penalties

• First Half of the Year: Payment due by May 31st (for April 1st - September 30th period)
• Second Half of the Year: Payment due by December 31st (for October 1st - March 31st period)

Late payment attracts a 2% monthly penalty with effect from 1st July for the first half-year and 1st January for the second half-year. Property owners must establish reminders and conduct timely payments to avoid penalties. Delays can incur financial penalties, but they could also lead to legal issues. However, property owners that are in default of payments for prolonged periods are subject to legal proceedings, including the seizure of the property or further fines from municipal authorities.

PMC Property Tax Incentives

PMC offers incentives to encourage timely tax payments:

• 10% rebate on general tax for properties with an annual rateable value up to Rs. 25,000.
• 5% discount for properties with an annual rateable value above Rs. 25,000.
• Additional rebates of 5%-10% for residential properties with solar power, vermiculture, or rainwater harvesting systems.
• Early payment bonuses may also be introduced in certain financial years as a measure to increase timely compliance.

Property owners should check for eligibility to maximize their savings and support environmentally sustainable initiatives. These incentives encourage citizens to pay on time while promoting green initiatives that benefit the entire city.

How to Download a PMC Property Tax Receipt?

Taxpayers can access their tax receipts online:

• Visit the PMC website.
• Click on 'Tax Receipt'.
• Enter details such as property type, Section ID, Peth ID, and Account Number.
• Click Submit, and the receipt will be displayed for download.
• Save the receipt for future reference, as it serves as proof of payment.

Having an electronic copy of the tax receipt is crucial for financial records, especially when selling a property or applying for loans that require proof of timely tax payments.

PMC Property Tax Exemptions

However, PMC provides exemption to property tax for all buildings that are used for religious worship or which are registered as a charitable institution/trust of the Charity Commissioner. Moreover, tax concessions may also be considered for properties used by war widows, disabled and people belonging to economically weaker sections, subject to production of relevant documents. Property owners who think they might be eligible for an exemption should apply ahead of time with supporting documents so as not to be improperly billed.

Latest News on PMC Property Tax Collection

At Rs. 1,845.91 crores, PMC posted its highest property tax collection in five years for the period up until March 31st, 2022. This was a rise of 10.92% over the previous year, and 70.22% over 2017-18.

The number of property owners who paid using the online payment gateway was 5.81 lakh, which is almost 64% of the total. Taxpayers opted for online payment, especially so, since COVID-19 pandemic. Other payment methods were cheque (Rs. 670.14 crores) and cash (Rs. 179.89 crores).

The increase in tax collection was partly driven by the Maharashtra government's property registration rebate scheme that spurred realty transactions. Public Tax Awareness of PMC departments has also contributed to enhanced tax compliance. As part of this commitment, the PMC anticipates continued growth in compliance rates and revenue generation through ongoing digital initiatives and incentives.

Final Thoughts

PMC property tax powers the lifeblood of essential services and infrastructure in the city, including roads, drainage, education, healthcare, and more. With penalties looming and incentives available, taxpayers should not lose sight of the benefits of timely payment of dues. Whether on the internet or offline, PMC has simplified the entire process so property owners can pay for license fees more easily than ever before. However, timely tax payments are not just about ensuring revenue for the state, but also for making Pune a better managed metropolis. Responsible property tax payments helps the city grow while improving the quality of life of its residents.