Mumbai: The Brihanmumbai Municipal Corporation (BMC) reported a record-breaking Rs 6,172 crore in property tax collection, achieving 99.54 per cent of its Rs 6,200 crore target, as the financial year 2024-25 came to an end on Monday. This marks the highest-ever property tax collection by India’s largest civic body, reflecting a 30 per cent increase compared to the Rs 4,856 crore collected in the previous fiscal.
BMC had collected nearly Rs 6,171.75 crore by 10 pm on March 31, with only a Rs 21 crore shortfall remaining. Property tax is levied on over seven lakh properties in Mumbai, making it one of the corporation’s most major revenue sources.
Factors Behind Record Collection
Senior officials attribute this year’s success to consistent follow-ups, enhanced recovery measures and citizen compliance. According to Gajanan Bellale, Civic Assessor and Collector, the annual property tax collection target typically increases by 10-12 per cent. This year, additional efforts in sending notices, recovering unpaid dues and attachment proceedings contributed to the surge in revenue, reported the Indian Express.
BMC also managed to recover Rs 1,600 crore in outstanding dues from the previous fiscal, pushing the actual tax collection beyond Rs 7,500 crore. Officials acknowledged that delays in bill generation had impacted last year’s collection, but this year’s timely actions helped recover arrears.
Initially, the BMC had estimated Rs 4,950 crore in property tax revenue for 2024-25, but this was later revised to Rs 6,200 crore in the February budget. Over the past years, tax collections have fluctuated, with Rs 4,994 crore collected in FY 2022-23 and Rs 5,208 crore in FY 2021-22. For 2025-26, the civic body aims to collect Rs 5,200 crore.
Growing Liabilities & Unchanged Tax Rates
The increase in tax revenue comes at a time when the BMC faces financial strain due to several large-scale infrastructure projects. Despite this, property tax rates in Mumbai have remained unchanged since 2015, though regulations mandate a hike every five years. A scheduled revision in 2020 was postponed due to the COVID-19 pandemic and no increase has been implemented since.
In addition to property tax, the BMC is exploring other revenue sources, such as solid waste management (SWM) fees and taxes on commercial units in slum areas. Currently, property tax remains the second-largest revenue source for the civic body, following water and sewerage charges.
Mumbai’s Real Estate Boom: Highest Stamp Duty Collection In March
March 2025 witnessed an unprecedented surge in Mumbai’s real estate activity, with 15,603 property registrations, a 10.3 per cent year-on-year increase. According to the report, data from the Inspector General of Registration (IGR), analyzed by Knight Frank India, showed that stamp duty collections for the month soared to Rs 1,597 crore, the highest ever recorded in a single month.
Residential properties accounted for nearly 80 per cent of registrations, making March the most active month for the city’s real estate market. Compared to February, property registrations jumped by 29 per cent, while stamp duty revenue increased by 71 per cent.
For the entire fiscal year 2024-25, Mumbai recorded 1,43,948 property registrations, marking a 9 per cent increase from the 1,32,723 registrations in the previous fiscal. These numbers reflect the city’s robust demand for real estate despite economic uncertainties.
