By Advocate Ketan Palshikar | Property Lawyer and Property Manager, Pune
Property tax does not stop because you live abroad. PMC notices do not wait for you to return to India. Fire NOC renewals do not happen automatically. Building compliance obligations do not suspend themselves because the owner is an NRI.
These are the statutory obligations that attach to property ownership in Pune — regardless of where the owner lives, regardless of whether the property is rented or vacant, and regardless of whether anyone has told the owner about them.
For NRI property owners without active management, these obligations go unmet quietly. Property tax goes unpaid and attracts interest at 2% per month. A PMC notice with a 30-day response window sits unread at the property address while the default accumulates. A fire NOC lapses and the society faces compliance consequences that eventually reach the flat owner.
This page describes exactly what statutory compliance obligations attach to your Pune property, what happens when they are not met, and how this management arrangement ensures they are met — without requiring your physical presence in Pune.
On This Page
- Property Tax in Pune — The Complete Picture
- How Property Tax Is Calculated in Pune
- Property Tax Payment — Process and Deadlines
- Consequences of Non-Payment
- PMC and PCMC Notices — Categories and Response Requirements
- Building Compliance Obligations
- Fire NOC — What It Is and Why It Matters
- Water Connection Compliance
- Electricity Connection Compliance
- Mutation — Keeping Revenue Records Current
- What We Handle Under PoA
- What Requires Your Instruction
- Common Mistakes
- FAQs
- Contact
Property Tax in Pune — The Complete Picture
Property tax in Pune is levied by the Pune Municipal Corporation for properties within PMC limits, and by the Pimpri Chinchwad Municipal Corporation for properties within PCMC limits. Properties in other areas — Talegaon, Lonavala, and surrounding municipal council areas — are governed by their respective local bodies.
Property tax is an annual obligation. It is payable by the property owner — not the tenant, not the society, not the managing agent — unless specific arrangements have been made. The fact that a tenant occupies the property does not transfer the property tax obligation to the tenant. The fact that the property is managed by an agent does not transfer the obligation to the agent. The obligation remains with the owner — and under the management PoA, it is discharged by this office on your behalf from the management account.
Property tax in Pune is assessed on the Annual Rateable Value — or capital value in some cases — of the property. The method of assessment has evolved over the years, and properties in Pune are assessed under the capital value-based system introduced by PMC.
How Property Tax Is Calculated in Pune
PMC calculates property tax based on the capital value of the property — determined by PMC’s own assessment — multiplied by the applicable tax rate.
The components of property tax in Pune:
Property tax in Pune is not a single levy — it comprises several components charged together:
- General tax — the primary property tax
- Water tax — for water supply and sewerage infrastructure
- Conservancy tax — for solid waste management
- Education cess — for educational infrastructure
- Employment guarantee tax — a state-level cess
The total property tax bill includes all these components. The combined rate varies based on property type, use — residential or commercial — and location.
Capital value assessment:
PMC determines the capital value of a property based on:
- Ready Reckoner rate for the area — the government’s annual valuation
- Built-up area of the property
- Usage — residential, commercial, industrial
- Age of the building — older buildings have depreciated values
- Floor — higher floors may attract different treatment in some assessments
Residential property tax rates:
For residential properties, the tax rate is applied on a percentage of capital value. PMC periodically revises these rates — the specific current rate should be verified on the PMC portal or with this office at the time of management commencement.
Self-occupied vs rented properties:
PMC’s property tax assessment may treat self-occupied and rented properties differently in some respects. A property that is rented should be correctly declared as such in the property tax records — incorrect declaration can create compliance issues at the point of sale or when PMC conducts verification.
Property Tax Payment — Process and Deadlines
Payment schedule:
Property tax in Pune is payable in two instalments:
- First instalment: Due by 31st May
- Second instalment: Due by 31st December
Payment before the due date qualifies for an early payment rebate — typically 2% on the total tax amount. This rebate is small but represents a saving that is captured under active management.
Payment modes:
PMC and PCMC both offer online payment through their respective portals — pmc.gov.in for PMC properties and pcmcindia.gov.in for PCMC properties. Payment can also be made at citizen facilitation centres, authorised banks, and through various digital payment methods.
Under this management arrangement, property tax is paid online from the management account before the due date. The payment receipt — downloadable from the PMC/PCMC portal — is filed and included in the monthly report for the relevant month.
Verifying the property tax account:
At the start of the management arrangement, the property tax account is verified on the PMC/PCMC portal for:
- Correct property details — owner name, property address, area
- Outstanding dues from previous years
- Correct classification — residential vs commercial
- Any notices or demands on the account
Discrepancies identified at this stage are corrected before ongoing management begins. A property tax account with incorrect owner details or outstanding dues creates complications at the point of sale — and is significantly easier to correct during a vacancy period than under the time pressure of a sale.
Consequences of Non-Payment
Property tax non-payment in Pune has specific, escalating consequences that NRI owners who have not been paying regularly should understand.
Interest on arrears:
PMC levies interest on unpaid property tax at 2% per month on the outstanding amount. This compounds — two years of non-payment at 2% per month creates a significantly larger liability than the original tax amount.
For a property with an annual tax of ₹15,000, two years of non-payment creates:
- Principal arrears: ₹30,000
- Interest at 2% per month for 24 months: approximately ₹14,400 additional
- Total liability before penalties: approximately ₹44,400
This is a real cost of informal management that NRI owners frequently discover when they want to sell and the buyer’s lawyer identifies the arrears.
Penalty:
In addition to interest, PMC can impose a penalty on persistent defaulters. The penalty is separate from the interest and compounds the overall liability.
Distraint and attachment:
PMC has the power under the Maharashtra Municipal Corporations Act to distrain — seize — movable property of a defaulting property tax payer. For a flat owner, this means PMC can, in theory, attach property to recover unpaid tax. While attachment of a residential flat is not common for moderate tax arrears, the power exists and has been used for large commercial property defaults.
Impact on sale:
A property with outstanding property tax arrears cannot be sold without first clearing those arrears. The buyer’s lawyer — in any properly conducted property transaction — checks property tax payment status before advising on the purchase. PMC NOC for sale or building plan approval requires property tax to be current. Outstanding arrears plus interest must be cleared before the sale transaction can proceed.
Impact on society NOC:
Many Pune housing societies require property tax payment proof before issuing NOC for renting or selling. A property with unpaid property tax may face difficulty obtaining the society NOC required for these transactions.
PMC and PCMC Notices — Categories and Response Requirements
The Pune Municipal Corporation issues notices for a wide range of reasons. For NRI owners without active management, every notice that arrives at the property address and goes unread is a potential compliance default.
Categories of PMC notices relevant to NRI property owners:
Property Tax Notices
- Demand notice: Issued when property tax for a period has not been paid. States the amount due and the deadline for payment. Failure to respond by the deadline triggers interest and penalty.
- Assessment notice: Issued when PMC revises the assessed value of the property — which can happen periodically. The owner has the right to object to the assessment within a specified period. Failing to object within the period means the revised assessment is accepted.
- Correction notice: Where PMC identifies an error in the property records — owner name, area, classification — a notice may be issued for confirmation or correction. Failure to respond can result in incorrect records being maintained.
Building and Construction Notices
- Unauthorised construction notice: Where PMC identifies construction that was not sanctioned under the building plan. This can arise from modifications made by the owner, by a previous owner, or by a tenant. Response within the specified period is mandatory — failure to respond leads to PMC initiating demolition proceedings.
- Building plan deviation notice: Where the constructed building deviates from the approved building plan. Similar consequences to unauthorised construction notice.
- Dilapidated structure notice: Where PMC assesses that the building or part of it is in a dangerous condition. This is typically a building-level notice affecting all flat owners — the society is usually the primary respondent, but individual owners may receive notices.
Water and Drainage Notices
- Water connection dues notice: Outstanding dues on the water connection for your flat.
- Drainage connection notice: Compliance requirements for drainage connection to the PMC sewerage system.
- Water connection disconnection notice: Warning that the water connection will be disconnected for non-payment of dues.
Other Statutory Notices
- Fire safety compliance notice: Typically issued to the society for building-level fire safety compliance — but individual flat owners may receive notices where flat-specific issues are identified.
- Encroachment notice: Where PMC identifies encroachment on public land — including cases where a flat’s balcony or extension may encroach.
- Use-change notice: Where a residential property appears to be used for commercial purposes.
Response timelines:
PMC notices specify response deadlines — typically 7 days, 15 days, or 30 days depending on the category. Missing the deadline does not make the notice disappear — it makes the default official and triggers escalation.
Under this management arrangement, all PMC/PCMC correspondence is addressed to this office. Every notice is reviewed on receipt, the response deadline is identified, and appropriate action is taken within the required period.
Building Compliance Obligations
Beyond property tax and individual notices, there are building-level compliance obligations that affect flat owners in Pune housing societies.
Occupancy Certificate
The Occupancy Certificate — issued by PMC at the time of building completion — certifies that the building was constructed in accordance with the approved plan and is fit for occupation. For buildings constructed before OC became a routine requirement, or for buildings where the developer obtained only a Completion Certificate rather than an OC, this is a compliance gap that affects all flat owners.
A flat without OC coverage — either because the building has no OC or because the flat was in a phase not covered by the existing OC — faces complications at the point of sale and in obtaining loans against the property.
This is a building-level compliance matter — not something this management arrangement resolves independently. However, we identify OC status at the start of the management arrangement and flag any gap to you.
Commencement Certificate and Building Plan
The building should have been constructed under a valid Commencement Certificate and in accordance with the approved building plan. Deviations from the approved plan — whether made by the original developer or by subsequent modifications — are building compliance issues that affect the marketability and mortgageability of the flat.
RERA Registration
Buildings commenced after May 2017 are required to be registered under RERA — the Real Estate (Regulation and Development) Act, 2016. RERA registration provides certain protections to flat buyers and creates ongoing compliance obligations for developers during the construction phase. For completed buildings, RERA registration is a past event — but verifying that the project was registered and that there are no outstanding RERA complaints against the developer is relevant due diligence.
Fire NOC — What It Is and Why It Matters
A Fire No Objection Certificate is issued by the Maharashtra Fire Services — or the local fire authority — certifying that a building meets the fire safety requirements specified under the Maharashtra Fire Prevention and Life Safety Measures Act, 2006 and the National Building Code.
Who needs a Fire NOC:
Buildings above a certain height and buildings in certain use categories are required to obtain a Fire NOC. For residential buildings in Pune, the requirement typically applies to buildings above 15 metres in height — generally four floors and above. Many Pune housing societies fall within this requirement.
Renewal requirement:
A Fire NOC is not a one-time certificate. It requires periodic renewal — typically every one to three years depending on the building category. The renewal process involves a fire safety inspection of the building.
Consequences of lapsed Fire NOC:
A lapsed Fire NOC creates a compliance gap for the society. Consequences include:
- Difficulty in obtaining other statutory permissions — building plan modifications, additional construction
- Complications at the point of property sale where buyers’ lawyers check NOC status
- Potential liability in case of fire-related incidents
Who is responsible:
The Fire NOC is a building-level obligation — the housing society is typically the entity that applies for and maintains it. Individual flat owners are affected by the society’s compliance position. Under this management arrangement, Fire NOC status is monitored through society engagement — if the society’s Fire NOC is lapsing, it is flagged at the AGM and through formal society correspondence.
Water Connection Compliance
Every flat in Pune has a water connection — either through the society’s bulk connection or through an individual connection to the PMC/PCMC water supply network. Water connection compliance involves:
Water dues:
PMC/PCMC water charges — whether charged to the flat individually or through the society — must be current. Outstanding water dues lead to disconnection notices and eventual disconnection.
Water connection for vacant flats:
As discussed on the Vacant Property Management page, maintaining a water connection at minimum active status during vacancy is preferable to disconnection and subsequent reconnection. Under this management arrangement, water connection dues are monitored and paid from the management account.
Water connection registration:
The water connection should be registered in the current owner’s name. For inherited properties or properties where the original purchaser’s name has not been updated in PMC records, the water connection may still be in the previous owner’s name — creating complications when dues notices are issued.
Electricity Connection Compliance
The electricity connection for your flat is regulated by the Maharashtra State Electricity Distribution Company — MSEDCL — or by the local distribution licensee in your area.
Electricity dues:
Electricity bills must be current. A disconnected electricity connection requires a reconnection application and fee — and extended disconnection can lead to the connection being permanently severed, requiring a fresh connection application.
Connection in current owner’s name:
The electricity connection should be registered in your name as the current owner. For inherited properties, the connection may still be in the previous owner’s name — which creates practical difficulties and should be updated.
Tenant metering:
Where a sub-meter is installed for the tenant’s usage, the main connection remains in your name and the tenant pays for their consumption either directly or through the management account. The main connection dues — fixed charges, meter rent — remain your obligation.
During vacancy:
The electricity connection is maintained at minimum active status during vacancy. The fixed charges are paid from the management account. Complete disconnection is avoided for the reasons described on the Vacant Property Management page.
Mutation — Keeping Revenue Records Current
Mutation is the process of updating revenue records — the property card at the City Survey Office, and records with the local body — to reflect the current owner’s name after a property transaction.
When mutation is required:
- After purchase of property — title documents show you as owner, revenue records must be updated to match
- After inheritance — property transferred by Will or succession must be mutated in the heir’s name
- After gift — a gifted property must be mutated in the recipient’s name
Mutation in Pune:
For properties in PMC limits, mutation of property records is done at the City Survey Office. For properties in rural or peri-urban areas, mutation is done at the Talathi’s office. For housing society properties, the society’s share certificate transfer is the primary membership record — but the 7/12 extract or Property Card should also reflect the current owner.
Why mutation matters:
- PMC property tax demands are raised in the name shown in revenue records — an unmutated property may have tax demands going to the previous owner’s address
- Property Card is a key title document reviewed in property transactions — an outdated Property Card creates due diligence concerns
- For inherited properties, banks and registrars may require a mutation-completed Property Card before processing subsequent transactions
Under this management arrangement:
Mutation status is checked at the start of the management arrangement. Any pending mutation — for inherited properties, recent purchases where mutation was not completed, or properties where the revenue records have not been updated — is identified and the correction process is initiated.
What We Handle Under PoA
The following statutory compliance matters are handled by this office under the management PoA without requiring your specific instruction for each item:
| Matter | How Handled |
|---|---|
| Property tax — first and second instalment | Paid online before due date from management account |
| Property tax receipt | Downloaded, filed, reported in monthly statement |
| PMC portal monitoring | Property tax account checked monthly for notices or demands |
| Society maintenance — indirect compliance | Paid monthly — society uses funds for building-level compliance |
| Water connection dues | Paid from management account where applicable |
| Electricity connection dues | Paid from management account during vacancy |
| PMC notice receipt | Received at this office, reviewed immediately |
| PMC notice response — routine | Responded to within required period |
| Mutation status check | Verified at start of management, updated as required |
| Fire NOC monitoring | Status checked through society engagement |
What Requires Your Instruction
The following statutory matters require your specific instruction before action is taken:
| Matter | Why Your Instruction Is Required |
|---|---|
| PMC assessment objection | Disputing a revised assessment is a formal legal position — your decision |
| Unauthorised construction notice response | May require disclosure about modifications — your knowledge required |
| Building plan deviation — regularisation application | Significant process with cost implications — your decision |
| Mutation application — inherited property | Requires your personal documents and declarations |
| Water connection name change | Administrative process requiring your identity documents |
| Electricity connection transfer | Requires your documents and application |
| Any statutory proceeding beyond routine response | Legal position and cost — your decision |
| Any expenditure above defined threshold for compliance work | Financial decision — your approval required |
For matters requiring your instruction, we prepare a brief explaining the situation, the options, the implications, and our recommendation — and seek your decision before proceeding.
Common Mistakes
1. Assuming the tenant pays property tax
Property tax is the owner’s obligation — not the tenant’s. Some Leave and License Agreements include a clause making the tenant responsible for property tax — but even with such a clause, the PMC’s claim is against the owner. If the tenant fails to pay under such a clause, the arrears and interest accrue against the owner. Under this management arrangement, property tax is paid by this office from the management account — not delegated to the tenant.
2. Not checking property tax records for accuracy
A property tax account in the wrong name, with an incorrect area, or with an incorrect classification — residential vs commercial — creates compliance and transactional problems. These errors are common in Pune’s older properties and in properties that changed hands without proper record updates. Checking and correcting the property tax records at the start of management prevents these problems from surfacing at the worst possible time.
3. Ignoring PMC notices sent to the property address
A property that is rented has a tenant who may or may not recognise the significance of a PMC notice and forward it. A property that is vacant has no one at all to receive the notice. Under this management arrangement, the PMC records show this office as the correspondence address — so notices reach us directly. This is one of the administrative changes made at the start of the management arrangement.
4. Allowing the property tax account to accumulate arrears over multiple years
Each year of non-payment adds 2% per month interest. A property with five years of property tax arrears may owe more in interest than in principal. Clearing such arrears requires a lump sum that could have been avoided entirely with timely annual payment.
5. Not updating mutation after inheritance
An inherited property where mutation has not been completed has property records still showing the deceased previous owner. PMC tax demands go to the old address. Society records may not reflect the new owner. Bank accounts and other assets linked to the property may still be in the deceased’s name. Mutation completion is a priority task for inherited NRI properties — not something to defer.
6. Treating building compliance as the society’s problem only
Building-level compliance — Fire NOC, OC, building plan compliance — is the society’s primary responsibility. But individual flat owners are affected by the society’s compliance position. A building without a valid Fire NOC, or with significant building plan deviations, affects the marketability and mortgageability of every flat in it. Monitoring the society’s compliance position through AGM attendance and formal society engagement is part of protecting your individual flat’s value.
7. Not maintaining electricity and water connections during vacancy
Disconnected connections are not simply reconnected on request. Reconnection processes involve applications, inspections, and fees — and can take weeks. Maintaining connections at minimum active status during vacancy is less expensive and significantly less disruptive than reconnecting after extended vacancy.
Frequently Asked Questions
1. How do I know if my property tax account is current?
The PMC portal — pmc.gov.in — allows property tax status to be checked online using the property account number or the owner’s name. At the start of this management arrangement, we check the property tax account status and provide you with a clear statement of what is owed — principal, interest, and any penalties — if arrears exist. Going forward, the account is maintained current with payments before due dates, and the receipt is included in the monthly report.
2. My property tax is in my father’s name — he passed away five years ago. What needs to be done?
This is a common situation for inherited properties. The property tax records need to be updated to reflect the current owner’s name through a mutation process at the relevant City Survey Office. This requires: death certificate of the previous owner, proof of succession — Will and probate if available, legal heir certificate or succession certificate if no Will — and application to the City Survey Office with the required documents. Until mutation is complete, PMC tax demands continue to go in the deceased’s name and to the old address. We assist with the mutation process as part of the management arrangement commencement for inherited properties.
3. PMC has revised my property’s assessed value upward and my tax has increased significantly. Can I object?
Yes. A property owner has the right to file an objection to a revised assessment within the period specified in the assessment notice — typically 30 to 60 days. The objection must state the grounds — incorrect area measurement, incorrect classification, incorrect Ready Reckoner rate applied — and be supported by documentary evidence. We review the revised assessment, assess the grounds for objection, and if a valid ground exists, prepare and file the objection on your behalf with your instruction. Missing the objection deadline means the revised assessment is accepted — this is a situation where the notice must reach us promptly, which is why all PMC correspondence is addressed to this office.
4. What is the early payment rebate on property tax in Pune and how is it captured?
PMC offers an early payment rebate — typically 2% of the total tax amount — for payment before 31st May for the first instalment. Under this management arrangement, property tax payment is made before the due date as standard practice, capturing the available rebate. The rebate amount is small in absolute terms for most residential properties — but it is a saving that is captured automatically without any additional action required from you.
5. My property is in PCMC limits — Pimpri Chinchwad — not PMC. Is the process different?
PCMC has its own property tax system — pcmcindia.gov.in — with its own assessment methodology, rates, and payment process. The broad framework is similar to PMC — capital value-based assessment, two instalments, interest on arrears — but the specific rates, online portal, and administrative procedures differ. This management arrangement covers properties in both PMC and PCMC limits and handles property tax compliance for PCMC properties through the PCMC portal and processes.
6. I have not paid property tax for four years. How do I find out what I owe and how do I pay it?
The outstanding amount — including interest — can be verified on the PMC portal. We check the account status at the start of management and provide a complete statement of arrears. Payment of arrears can typically be made online for smaller amounts. For larger arrears, a physical visit to the PMC citizen facilitation centre may be required. Some NRI owners in arrears situations apply for a waiver of interest — PMC occasionally announces interest waiver schemes, and we monitor these and advise you when a waiver scheme is available that applies to your property.
7. Does the tenant have any property tax obligation?
No — not under general law. Property tax is the owner’s statutory obligation. Some Leave and License Agreements include a clause making the tenant responsible for paying property tax — but this is a contractual arrangement between landlord and tenant and does not affect PMC’s claim against the owner. If the tenant is made responsible for property tax under the agreement and fails to pay, the arrears and interest accrue against you as the owner. For this reason, this management arrangement does not delegate property tax payment to the tenant — it is handled directly by this office.
8. What happens if PMC issues a notice for unauthorised construction in my flat — for something I did not do?
Unauthorised construction notices are issued against the property — not necessarily against the current owner personally. If the modification was made by a previous owner, a previous tenant, or a developer who made changes to the sanctioned plan, the current owner still receives the notice. The response to such a notice typically involves: establishing that the modification pre-dates your ownership, providing title documents showing when you acquired the property, and seeking regularisation through PMC’s compounding scheme where available. The process depends on the nature of the modification and PMC’s current regularisation policy. We handle the initial response and advise on the appropriate approach.
9. How often is property tax assessed in Pune? Can my tax amount change year to year?
Property tax in Pune is assessed based on the capital value, which PMC updates periodically — typically linked to annual Ready Reckoner rate revisions. The tax rate itself may also change through PMC’s annual budget. As a result, the property tax amount can change from year to year — sometimes significantly when Ready Reckoner rates are revised upward. We monitor the property tax account annually and flag any significant changes in the tax amount with an explanation.
10. My building does not have a valid Occupancy Certificate. Does this affect my property tax?
Property tax is payable regardless of OC status — PMC does not exempt properties from property tax because they lack an OC. However, the absence of OC affects the property in other ways — complications in sale, difficulty in obtaining home loans, and in some cases PMC may levy a higher tax rate for properties without OC. The OC situation is a building-level matter that affects all flat owners — it is flagged at the start of management if identified, and the society is engaged on the path to regularisation where applicable.
Areas We Cover in Pune
This service covers the entire Pune PMC and PCMC area. Properties in gram panchayat areas or outside Pune district are not covered.
Localities we regularly serve: Kothrud, Aundh, Baner, Bavdhan, Pashan, Wakad, Hinjewadi, Viman Nagar, Kalyani Nagar, Koregaon Park, Hadapsar, Kondhwa, Undri, Karve Nagar, Shivajinagar, Deccan, Erandwane, Camp, Pimpri-Chinchwad, Talegaon Dabhade, Lonavala and surrounding areas within PMC/PCMC limits.
Contact
Advocate Ketan Palshikar
Property Lawyer and Property Manager, Pune
14, Eiffel Square, 1530, Sadashiv Peth, Off Tilak Road, Pune – 411030
Phone / WhatsApp: +91 9325624069
Email: palshikar.ketan@gmail.com
Website: palshikarlegal.in
If your property has unpaid property tax, unread PMC notices, or statutory compliance gaps — the right time to address them is before they compound further. Contact us for an initial compliance audit.
Your property. Our legal responsibility.