The Brihanmumbai Municipal Corporation (BMC) has approved a proposal to increase the property tax exemption limit for residential units in Mumbai, expanding the relief from homes measuring up to 500 square feet to those up to 700 square feet.
The resolution, which was passed unanimously in the municipal body, is expected to provide financial relief to thousands of households across the city. The decision has been seen as a key policy move by the ruling Mahayuti alliance and the newly elected city leadership, and it aligns with an earlier election promise made by the Shiv Sena–Maharashtra Navnirman Sena alliance.
Until now, residential units measuring up to 500 square feet were exempt from property tax in Mumbai. With the threshold increased to 700 square feet, a larger number of middle-class families are expected to come under the exemption bracket. However, civic officials estimate that the measure could lead to a revenue shortfall of nearly ₹700 crore for the municipal corporation.
According to the resolution, the decision takes into account the financial challenges faced by middle-income households, particularly those living in redeveloped chawls and slum rehabilitation housing. Many families receive new homes through redevelopment or cluster redevelopment schemes but continue to face high living expenses in the city.
The document outlining the decision cited multiple reasons for extending the tax relief, including rising household expenses and the increasing cost of maintaining residential properties. “Middle-class families find it difficult to afford property taxes along with rising maintenance and repair charges for 500-square-foot flats. High expenses for education, healthcare, and family upkeep often leave residents with no choice but to sell their flats and move outside of Mumbai. Increasing the limit to 700 square feet is essential to ensure that the original Mumbaikar can afford to stay within the city limits,” said BMC sources.
The proposal for the tax exemption was initially introduced in the municipal house by Yashodhar Phanse of Shiv Sena (UBT). After receiving approval, the proposal will now move through the administrative process before being implemented.
“The proposal will be sent to Zonal Officers for administrative processing. It will then move to the Law and Judiciary Department for legal scrutiny. Once verified, the proposal will be submitted to the Municipal Commissioner for a final signature. Following the BMC Commissioner’s approval, an official circular will be issued, making the tax exemption for homes between 500 and 700 square feet legally effective,” stated sources.
Observers say the change could provide financial relief to many households in Mumbai once it is formally implemented.
Source: IANS
