Suddenly, we are reminded of an asinine municipal decree that many of us did not even know existed! In Mumbai, we are expected to shell out nearly 30% in terms of taxes to the BMC on rents collected by us over our leased properties. How corny and unfair is that.
I have two huge, huge issues with this fatwa on real estate in the city. One, having paid humungous amounts on stamp duty, registration and other hurtful taxes, what business is that of the municipality on what we do with our assets? What business do they have eyeing monies we make on our assets, especially given that we already will pay income tax on the rents? Has anyone even bothered to ask what becomes of the stamp duties we pay, how much of that goes into lining the pockets of the corrupt babus and netas? And now, this!
Here’s what will happen if we don’t protest against this totally irrational levy: The landlords will jack up their rents to pass on the burden to the apartment renters, and this is another body blow on the middle class citizens of this city, who stay on rentals cos they can’t afford to buy prop in the first place. Is the BMC trying to drive the middle and lower middle class out of this city?
Two, many discouraged landlords will quit giving out their flats on rent
(don’t forget many building societies already charge higher maintenance on rented premises), thus leaving a whole lot of houses vacant. In short, a lose-lose situation for the aam aadmi.
Sadly, I don’t have access to the mass media to bring this issue to the fore. If you do, dear reader, please use that power to make sure this fatwa is scuttled immediately. Apathy has thus far got us nowhere. Now it will drive us out of this city.
7 comments:
Dear Anil,
BMC collects taxes worth 1.83paise per sq ft as per carpet area in the name of providing us the facilities that go with the taxes. Our property is leased by MHADA to the developer for 99 years, and so inspite of purchasing the flats, we are still leased under the MHADA.
milisept29@yahoo.co.in
For your information, the area I live in is still under the MHADA which has not been handed over to the BMC. But we do pay our taxes to BMC or else we wil have to pay 35% penalty if not paid within the stipulated time. Inspite of not having any BMC facilities, Myself and the residents of charkop sector 8 have been fighting this issue for over a year. and finally we have been given a date by the Mayor of Mumbai on 6th May at 11.30 a.m. at the Mayor's chamber to sort out the issue with the BMC and the MHADA coming face to face for the first time. Wish me luck that our luck clicks.
milisept29@yahoo.co.in
Hi Anil,
One fine day all businessmen/woman will leave Maharashtra for other shores. Then who will they have to tax?
Poor farmers dying/commiting suicides in Maharashtra. Now the am admi will follow.
So Cheers, and let them have their way, because cowards the likes of your old establishment will never want to offend, by carrying such protests. On the contrary they give them a nice platform, and boost their egos.
NAT
i suspect that the bmc has an independent department that probes into every aspect of a mumbaikars life to unearth non taxed avenues and then goes on a rampage.
this latest decree is hugely unfair!
an additional and ongoing tax on assets that we have already paid all kinds of taxes on!
and apart from ranting and raving on this blog, i am going to be able to do little else
Is this some kind of ploy by the Govt to drive out the middle class honest tax paying families from Bombay city?? Oh well..that leaves only the super rich and the slums..maybe the idea is for their vote banks the slums to then take over the flats left over by the people in this city. Either way..it is the middle class which is suffering..not the "poor" slums nor the rich.
At this point I want to add one point-near my house at Nahar Amrit Shakti(near Powai) if u pass the slums adjoining Lake Homes..(the road leading to the Powai Police Station) u will see lots of slums lining one side of the road. Let's not call these people-"poor",ok?? Kindly pass them carefully and you will observe one of them having even a Split Aircon of LG brand no less outside their "hut"..!!
what do u say abt this??!! has anyone in the Govt thought abt the kind of income these people must be making?? How we are being cheated..!!
If u read this post..pls pls do reply my view.
Most landlords doNOT declare the amount of rent they collecting. Lakhs of tenants pay thier rent - Half by cheque ( white) and half by cash (black). So while you are right in puring out your anguish on the BMC, dont you think that the landlords have to be more honest in the first place???
hi chikaboo, agree with you: it's always the middle class that gets hit, be it economy, or be it bomb blasts.
and sowjanya, you have a point, but let me add that with the latest decree, many landlords will deal 100% in cash. so you decide who's the real loser in the end.
sir..am not sure landlords will deal with tenants by taking 100% cash. its no big deal. many people claim HRA by still making fake reciepts etc to claim from the company..and so it will be with this case too.
people have and always will manage to find some loophole to exploit until the babus figure that out and play spoilsport to it..!!
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