BMC took higher property taxes

Kawal  Kapoor

As you are aware the BMC collected higher property taxes from the coop societies in Mumbai and then has refunded some amount back to the cooperative societies.

This refund is to be given to the individual flat owners.

During this tenure lots of flat owners have changed hands and their flats have been sold to the current owners.

Now the Managing committee came up with this idea of giving the refunds to the flat owners of that tenure , even if they sold their flats and have left and not to the current owners of the flat .

The current owners have purchased the flat with all assets and liabilities,so in this case is the Managing committee right in giving away the tax benefits to the previous owners ,when as the current owners we are open to any retrospective liabilities levied by any government authorities as the previous owners will be happy to receive the refund but by no means they agree to pay any penalties asked from them.

I C Naik

Unlike income tax a Property Tax is levied on the property and if not paid by whosoever, BMC can acquire it and sell to realize unpaid taxes in respect of any property. As the property is in occupation of the current holder he is liable to pay any tax of the past or present. The refund is to a “property” technically. So the current owners are the beneficiaries of the refund. In any case this decision will have to be approved in the general meeting and not in the committee meeting for it is not an issue of management of affairs of the society, but something extraordinary event.

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