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as on October 14, 2024
Abhishek rajesh naikude
Pune, Maharashtra 411033
Experts In:PMC , Property Tax , Property Tax NOC
Working Hours: 08 AM to 9 PM
Pune Property Tax Guide: Rates, Calculation & Impact
Explore Pune's property tax system, including rates, calculation methods, and its impact on income taxes. Expert tips for homeowners and investors in Pune real estate.
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Introduction
Imagine owning a beautiful home in the vibrant city of Pune, only to be caught off guard by a hefty property tax bill. For many homeowners and potential buyers, property tax remains a confusing and often overlooked aspect of real estate ownership.
But fear not! This guide will demystify the complexities of property taxation in Pune, helping you navigate the intricacies of income taxes, property tax calculations, and more.
Pune, known for its thriving real estate market and rapid urban development, has a unique property tax structure that every resident should understand.
Whether you're a first-time homebuyer or a seasoned property investor, knowing how property tax works can significantly impact your financial planning and decision-making.
In this comprehensive guide, we'll explore the ins and outs of property tax in Pune, from its calculation methods to recent reforms and exemptions. We'll also delve into how property tax relates to your overall income taxes and provide valuable insights on using tax calculators to estimate your taxable income.
What is Property Tax?
Property tax is a levy imposed by local governments on real estate owners based on the value of their property. It's a crucial source of revenue for municipalities, funding essential services such as road maintenance, waste management, and public schools. In Pune, property tax is collected by the Pune Municipal Corporation (PMC) and plays a vital role in the city's development and maintenance.
The Importance of Property Tax in Pune
Property tax in Pune contributes significantly to the city's revenue, accounting for a substantial portion of the PMC's annual budget. These funds are essential for:
1. Infrastructure development
2. Maintenance of public spaces
3. Provision of civic amenities
4. Implementation of urban development projects
Understanding and paying your property tax on time not only keeps you compliant with local laws but also contributes to the overall growth and well-being of Pune.
The Important Role of Property Tax in Pune's Development
Property tax in Pune isn't just a financial obligation for property owners; it's a vital contributor to the city's growth and quality of life. Let's delve deeper into why property tax is so important for Pune:
1. Urban Infrastructure Development
A significant portion of property tax revenue goes towards improving Pune's infrastructure. This includes:
- Road construction and maintenance
- Development of public transportation systems like the Pune Metro
- Building and maintaining bridges, flyovers, and underpasses
- Creating and upgrading pedestrian walkways and cycling tracks
For instance, the ongoing Pune Metro project, with an estimated cost of over ₹11,000 crores, relies partly on property tax revenue for its funding.
2. Public Services and Amenities
Property tax funds essential public services that benefit all Pune residents:
- Waste management and sanitation services
- Street lighting
- Public parks and gardens maintenance
- Fire and emergency services
The PMC's annual budget for these services often exceeds ₹1,000 crores, highlighting the importance of consistent property tax collection.
3. Education and Healthcare
A portion of property tax revenue is allocated to improving educational and healthcare facilities in Pune:
- Maintenance and upgrade of PMC-run schools
- Support for primary healthcare centers
- Funding for public hospitals and clinics
For example, the PMC allocates approximately 15-20% of its budget to education, which is significantly supported by property tax revenue.
4. Environmental Initiatives
Pune's efforts to become a more environmentally friendly city are partly funded by property tax:
- Implementation of the Swachh Bharat Mission
- Development of green spaces and urban forests
- Funding for air and water quality improvement projects
The PMC's recent initiative to plant over 1 million trees across Pune is an example of how property tax contributes to environmental conservation.
5. Smart City Projects
As part of the Smart Cities Mission, Pune is undertaking various projects to enhance urban living:
- Installation of smart traffic management systems
- Implementation of e-governance initiatives
- Development of integrated command and control centres
These projects, costing hundreds of crores, rely heavily on the city's tax revenue, including property tax.
Property Tax Rates in Pune vs Other Cities
To better understand Pune's property tax structure, let's compare it with other major cities in India:
City | Residential Rate | Commercial Rate |
| Pune | 13-30% of AR | 15-40% of ARV |
| Mumbai | 10-50% of ARV | 20-60% of ARV |
| Delhi | 10-20% of ARV | 10-20% of ARV |
| Bangalore | 20-25% of ARV | 25-30% of ARV |
As we can see, Pune's rates are competitive with other major cities, striking a balance between generating necessary revenue and maintaining affordability for property owners.
How is Property Tax Calculated in Pune?
The calculation of property tax in Pune involves several factors and can seem complex at first glance. Let's break it down step by step:
1. Annual Rateable Value (ARV)
The primary basis for property tax calculation in Pune is the Annual Rateable Value (ARV). The ARV is determined by factors such as:
- Location of the property
- Type of construction
- Age of the building
- Carpet area
- Usage (residential, commercial, or industrial)
2. Tax Rates
Once the ARV is determined, different tax rates are applied based on the property's usage:
- Residential properties: 13-30% of ARV
- Commercial properties: 15-40% of ARV
- Open plots: 5-10% of ARV
3. Additional Charges
On top of the base tax rate, several additional charges are applied:
- Tree cess: 1% of property tax
- Education cess: 1% of property tax
- Fire protection charges: 2% of property tax
- Water benefit tax: 5% of property tax (for properties with PMC water connection)
4. Rebates and Discounts
The PMC offers various rebates to encourage timely payment and eco-friendly practices:
- 10% rebate for early payment (within the first three months of the financial year)
- 5-10% rebate for rainwater harvesting systems
- 5-10% rebate for solar water heating systems
To illustrate, let's consider an example:
Suppose you own a residential property in Pune with an ARV of ₹1,00,000. The base property tax would be 25% of the ARV, which is ₹25,000. After adding the additional charges and applying potential rebates, your final property tax bill might range from ₹26,000 to ₹30,000, depending on various factors.
Recent Reforms in Pune's Property Tax System
In recent years, the PMC has introduced several reforms to streamline the property tax system and improve collection efficiency:
1. Online Payment System
The PMC has launched an online portal for property tax payment, making it more convenient for property owners to pay their taxes from the comfort of their homes.
2. GIS Mapping
The implementation of Geographic Information System (GIS) mapping has helped the PMC identify unassessed properties and improve tax collection.
3. Unique Property Identification Number (UPIN)
Each property in Pune is now assigned a UPIN, which helps in better tracking and management of property records.
4. Regularization Scheme
The PMC has introduced schemes to regularize unauthorized constructions, bringing more properties under the tax net.
These reforms have not only improved the efficiency of tax collection but also made the process more transparent and user-friendly for property owners.
Understanding the connection between Property Tax and Income Tax
While property tax is a local tax, it's essential to understand its relationship with income tax, which is a central government levy. Here's how they intersect:
1. Deductions Under Section 80C
Property tax payments can be claimed as a deduction under Section 80C of the Income Tax Act, 1961. This deduction can help reduce your taxable income and, consequently, your income tax liability.
2. Income from House Property
If you earn rental income from your property in Pune, it's considered "Income from House Property" for income tax purposes. The property tax paid can be deducted from the rental income before calculating the taxable amount.
3. Capital Gains Tax
When selling a property, the property tax paid during ownership can be added to the cost of acquisition, potentially reducing the capital gains tax liability.
Understanding these connections can help you optimize your overall tax planning strategy. It's advisable to consult with a tax professional or use a reliable tax calculator to accurately determine your taxable income and potential deductions.
Using Tax Calculators for Property and Income Tax Estimation
In today's digital age, various online tools can help you estimate your property tax and income tax liabilities. Here are some popular options:
1. PMC Property Tax Calculator: The official PMC website offers a property tax calculator that estimates your tax based on your property details.
2. Income Tax Calculator: The Income Tax Department of India provides an official income tax calculator on its website.
3. Taxable Income Calculator: Several financial websites offer comprehensive calculators that factor in various deductions and exemptions to estimate your taxable income.
These calculators can be invaluable tools for financial planning, helping you budget for your tax expenses and identify potential savings opportunities.
Property Tax Exemptions in Pune
The PMC offers several exemptions and concessions on property tax to certain categories of property owners:
1. Ex-servicemen and their widows
2. Freedom fighters
3. Persons with disabilities
4. Properties used for charitable or educational purposes
5. Properties owned by government bodies
It's important to note that these exemptions are subject to specific conditions and may require proper documentation for approval.
The Impact of Property Tax on Pune's Real Estate Market
Property tax plays a significant role in shaping Pune's real estate landscape:
1. Investment Decisions: Property tax rates can influence investors' choices between residential and commercial properties.
2. Property Values: Areas with lower property tax rates may see higher demand, potentially driving up property values.
3. Urban Development: Efficient property tax collection contributes to better infrastructure, making certain areas more attractive for real estate development.
4. Affordable Housing: Tax incentives for affordable housing projects can encourage developers to enter this segment.
Understanding these dynamics can help both buyers and sellers make informed decisions in Pune's competitive real estate market.
Tips for Managing Property Tax in Pune
1. Stay Informed: Keep track of any changes in property tax rates or policies announced by the PMC.
2. Pay on Time: Take advantage of early payment discounts to reduce your tax burden.
3. Verify Assessment: Ensure that your property's ARV is accurately assessed. If you believe there's an error, you can file an objection with the PMC.
4. Maintain Records: Keep all property tax receipts and related documents safely. They may be required for income tax filing or when selling the property.
5. Explore Rebates: Implement eco-friendly measures like rainwater harvesting to avail of additional rebates.
6. Seek Professional Advice: Consult with real estate experts or tax professionals for personalized guidance on property tax management.
Conclusion
Property tax in Pune is a crucial aspect of real estate ownership that impacts both your financial planning and the city's development. By understanding how it's calculated, staying updated on reforms, and leveraging available tools and exemptions, you can effectively manage your property tax obligations.
Whether you're a current property owner or planning to invest in Pune's real estate market, having a clear understanding of property taxation is essential. It not only helps you make informed decisions but also ensures that you contribute responsibly to the city's growth and development.
For expert guidance on navigating Pune's real estate landscape, including property tax considerations, turn to Foot2Feet. As a leading construction services and consultation firm in Pune, Foot2Feet offers comprehensive support for all your real estate needs. Visit www.foot2feet.com to learn more about how they can assist you in making smart property decisions in Pune.
Frequently Asked Questions (FAQs)
1. How often is property tax collected in Pune?
A: Property tax in Pune is collected annually, with the financial year running from April 1st to March 31st.
2. Can I pay my property tax in installments in Pune?
A: Yes, the PMC allows property owners to pay their tax in two installments – one in April-May and another in October-November.
3. What happens if I don't pay my property tax in Pune?
A: Failure to pay property tax can result in penalties, legal action, and potential property seizure by the PMC.
4. Are there any differences in property tax rates for new and old constructions in Pune?
A: Yes, the age of the building is a factor in determining the Annual Rateable Value (ARV), which affects the property tax calculation.
5. Can NRIs owning property in Pune pay their property tax online?
A: Yes, NRIs can use the PMC's online portal to pay their property tax from anywhere in the world.
UDCPR 2020 Chapter 13 is all about the Special Provisions for Certain Buildings as per mentioned in the UDCPR
This is Applicable to all Planning Authorities and Regional Plan Areas except Municipal Corporation of Greater Mumbai, Other Planning Authorities/Special Planning Authorities/ Development Authorities within the limit of Municipal Corporation of Greater Mumbai, MIDC, NAINA, Jawaharlal Nehru Port Trust, Hill Station Municipal Councils, Eco-sensitive/Eco-fragile region notified by MoEF & CC and Lonavala Municipal Council, in Maharashtra.
Rule No. 13.4 Grey Water Recycling And Reuse
Grey Water - This refers to wastewater from bathrooms, sinks, showers, wash areas, etc.
Applicability - These Regulations shall be applicable to all Developments/Redevelopments/part Developments for the uses as mentioned under Regulation No.13.4.1 to 13.4.6 and shall have the provision for treatment, recycling, and reuse of Grey Water. The applicant shall along with his application for obtaining necessary layout approval / building permission shall submit a plan showing the location of Grey Water Treatment Plant, furnishing details of calculations, implementation, etc. This Plan shall accompany with the applicant’s commitment to monitor the system periodically from the date of occupation of the respective building.
13.4.1 For Layout Approval/Building Permission
i) In case of Residential layouts, area admeasuring 10000 sq.m. or more, in addition to 10% open space, prescribed in the bye- laws, a separate space for Grey Water Treatment and Recycling Plant should be proposed in the layout. This may be proposed in amenity space as per Regulation No.3.5.
ii) On the layout Plan, all Drainage lines, Chambers, Plumbing lines should be marked in different colour and submit the layout for approval to the Authority.
iii) The recycled water shall be used for gardening, car washing, toilet flushing, irrigation, etc. and in no case for drinking, bathing, washing utensils, clothes etc.
iv) A clause must be included by the owner/developer in the purchase agreement that the purchaser, owner of the premises/organization or society of the purchasers shall ensure that :
a) The recycled water is tested every six months either in a municipal laboratory or in the laboratory approved by the Authority or by State Government and the result of which shall be made accessible to the competent authority / EHO of the respective ward office.
b) Any recommendation from the testing laboratory for any form of corrective measures that are needed to be adopted shall be compiled. Copy of any such recommendation and necessary action taken shall also be sent by the testing laboratories to the Competent Authority / EHO of respective Wards.
c) Maintenance of the Recycling Plant should be done by the Developer or Housing Society or Owner.
13.4.2 Group Housing/Apartment Building
In the case of a Group Housing scheme or a multi-storeyed building having 100 or more tenements, Grey Water Recycling Plant as mentioned in Regulation No.13.4.1 above, should be constructed. In the case of EWS/LIG tenements, this shall be provided for tenements of 150 or more.
13.4.3 Educational, Industrial, Commercial, Government, Semi-Government Organizations, Hotels, Lodgings, etc.
For all above buildings having built-up area of 1500 sq.m. or more or if water consumption is 20,000 litre per day whichever is minimum, then provision for Grey Water Treatment Plant as mentioned in Regulation No.13.4.1 is applicable.
13.4.4 Hospitals
Those Hospitals having 40 or more beds, Grey Water Recycling Plant as mentioned in Regulation No.13.4.1 is applicable.
13.4.5 Vehicle Servicing Garages
All Vehicle servicing garages shall ensure that the Grey water generated through the washing of vehicles is treated and recycled back for the same use as mentioned in Regulation No.13.4.1.
13.4.6 Other Hazardous uses
All other Establishments/Buildings where chances of Waste Water generated containing harmful chemicals, and toxins are likely and where such water cannot be directly led into municipal sewers, the concerned Competent Authority may direct the Owners, and users of such Establishments and buildings to treat their Waste Water as per the directions laid in Regulation No.13.4.1.
13.4.7 Incentive
The Owner/Developer/Society setting up and agreeing to periodically maintain such Grey Water Treatment and Recycling Plant entirely through their own expenditure shall be eligible for an incentive in the form of fiscal benefits in Property Tax to the extent of 5% to Tenement holder/Society.
13.4.8 Penalty Clause
Any person/Owner/Developer/Organization/Society violating the provisions of these bye-laws, he shall be fined Rs.2,500/- on the day of detection and if the violation continues, then he shall be fined Rs.100/- for every day as concrete action after written Notice from Authority.
If any person/Owner/Developer/Organization/Society fails to operate as determined by the Authorised Officer of the Authority and from the observations of test results and/or physical verification) the Recycling plant, then he will be charged a penalty of Rs.300/- per day and disconnection of the Water connection also.
Related Regulations
You can visit our other blogs related to Regulations 13 through the below-mentioned links:
Rain Water Harvesting in UDCPR 2020
Provisions for Barrier-Free Access in UDCPR 2020
Solid Waste Management in UDCPR 2020
Planning to start a constructional project? Good! But do you really know following things?
what you need to do to reach the construction phase? One may have various question in mind. like
What are the things to consider before building a house?
Different stages of building construction?
Is there any list of preconstruction services ?
What are pre construction planning stages ?
A lot of us think that construction of a building only needs architects, a bunch of labors, electrician, plumbers, and money. Well, we don’t blame this way of thinking since we have always been portraying this picture when construction is concerned. But every construction project begins only after clearing all the essential legal pre-construction activities. This pre-construction process is little difficult but it make your home or building legally strong & sound.
Tip – 1
Legal clearance of Land to get site control
The major benchmark before starting any construction process is to gain the complete site acquisition. Complete all the legal process that would define you as the site owner or something that legally gives you the site control. If you are thinking for the reason of its importance let us tell you that mostly the financing sources are unable to release the funds unless and until you have the site control.
These includes – 7/12, property card, Land demarcations, Title & search report, All mutation entries (ferfar), Society allotment letter, sale deed etc
Tip -2
Obtain the project financing
No project can stand strong if the finances are poor. So before starting any of the construction processes make sure you have strong financing in place. But what does actually in place mean? Not every penny can be ready and in hand, the least you could on your end is make sure your financing parties will deliver your need on time effortlessly. There are a lot of banks that offer constructional and another financing for a single project.
Not all Pre-constructional planning phases are in sequence so need to keep the department of financing alert as anything might come up anytime.
For financing you may need following documents –
Land ownership documents (given in tip -1 ), Pan card, Aadhar card, 3 years IT return statement, project estimate, Blue prints, documents of mortgage, salary slip (if any) etc.
Tip – 3
Architectural construction documents & Approvals
Before starting any pre-construction activity the third-party approvals are very important since you cannot start any construction without approval from local planning authority. A general contractor or your architect can get it done on your behalf. Generally, your project will be reviewed by three main entities –
– Approval plans & Building drawings
– Construction team & their licences (contractor, architect, plumber, structural engineer)
– Health & safety related assurance
– Precautions to be followed during construction
– Building rules of local area
Tip – 4
Site Clearance and Installation of safety measures.
Building foot-print & 2m surrounding space should be cleared on site to start construction. Approach road to the construction area should be cleared so that construction equipments like RMC, JCB, Piling Machine, trucks carrying building material can reach the construction area easily.
Any accident happened on site can bring legal stay on project. Hence appropriate measures for labour safety must be taken.
Tip – 5
Be Ready with Precise Project Management Plan
As you move forward by finalizing the different components of the project you need to invest your time tailoring the elite project management practices and plans to execute it. If you want to keep your project on track your team must know what the plan is and get ready to deliver it efficiently.
Schedule your activities considering climatic conditions eg- complete under ground activities like foundation & footing before Rainy season. Plan your activities considering various speed up techniques, like 3rd floor slab & 1st floor brick work can be done simultaneously.
Tip – 6
Appointment of Good Consultants –
There is a great difference between knowing something and analyzing something. We recommend you to select consultant’s who not only listen you but analyze your needs properly. Here is list of various consultants for your construction –
Design Architect, Liasoning agency, Structural Consultant, Civil Contractor, Site Supervisor, Plumbing and Electrical consultant (MEP), Landscape Architect, Interior Designer.
Tip – 7
Estimate of Time
Estimate time required for completion of your project. This time must be calculated on real experiences of your surrounding projects. This will help you to plan your shifting (if you are currently using land for some purpose). All your day to day activities like office, job etc will be disturbed during this time. Time estimate will help you to manage it well.
Even during construction you will have to keep follow up to your schedule so that everything is done on time.
UDCPR has a Unified rule, which means that instead of having numerous regulations for every city/region in the state, it is better to have a single rule for all cities in Maharashtra.
But due to some geological conditions or some other restrictions the regulations may vary a bit for some regions in Maharastra.
For Example, the Coastal Region, Hilly Region, Densely Populated Region, and Gaothan can't have the same type of rules, and the rules differ according to them.
UDCPR 2020 Chapter 5 is all about Additional Provisions for Regional Plan Areas.
This is Applicable to all Planning Authorities and Regional Plan Areas except the Municipal Corporation of Greater Mumbai, Other Planning Authorities/Special Planning Authorities/ Development Authorities within the limit of Municipal Corporation of Greater Mumbai, MIDC, NAINA, Jawaharlal Nehru Port Trust, Hill Station Municipal Councils, Eco-sensitive/Eco-fragile region notified by MoEF & CC and Lonavala Municipal Council, in Maharashtra.
Rule No. 5.4 For Kolhapur Regional Plan
Rule No. 5.4.1 Committed Development
Instead of Regulation No.5.1.3(i) and (ii), the following regulations shall be applicable for committed development -
i) Regarding Committed Development outside the previously Sanctioned Regional Plan of Kolhapur - Ichalkaranji Region :- All development permissions/layout approval granted by the District Collector/Concerned Revenue Authority or any development proposal for which tentative or final approval has been recommended by the concerned Town Planning Office and is pending with the concerned Revenue Authority for demarcation or for final N.A. approval on 12/09/2016 i.e. the date of board resolution for publication of draft R.P. shall continue to be valid for that respective purpose along with approved Floor Space Index.
Provided that it shall be permissible for the owner to either continue with the permission in toto as per such earlier approval and for that limited purpose, erstwhile regulation shall apply or apply for grant of revised permission under the new regulations. However, in such revision of cases, the premium, if any, shall not be applicable, for the originally approved land use and FSI only.
ii) Regarding Committed Development within the ambit of the previously sanctioned Regional Plan of Kolhapur - Ichalkaranji Region.
The development permission/layout approval granted by the District Collector/concerned Revenue Authority within the ambit of the sanctioned Regional Plan of Kolhapur - Ichalkaranji prior to the publication of the Draft Regional Plan, Kolhapur and if the said Development permission/layout is as per the provisions of sanctioned Regional Plan of Kolhapur - Ichalkaranji Region then such permission/layouts shall be treated as valid permission for the respective sanctioned use. These permissions/layouts, if submitted for revised approval, then it should be corrected as per the present sanctioned regulations of the Regional Plan of Kolhapur Region.
a) The development permission/layout approval granted by the District Collector/concerned Revenue Authority within the ambit of the sanctioned Regional Plan of Kolhapur - Ichalkaranji and if the said development permission/layout approval is contradictory or adverse to the provisions of sanctioned Regional Plan of Kolhapur - Ichalkaranji Region or Draft Published Regional Plan of Kolhapur Region then such permission/layout shall be treated as illegal and to be canceled with immediate effect.
Note :- The layouts that are approved before publication of the Regional Plan but do not fulfill the requirements of the then DCR, such as road width, open space, etc., but are saved as per the above special regulation; in such cases, the building permission shall be granted with 75% of FSI permissible in such zones.
Related Regulations to Rule No. 5 -
You can visit our other blogs related to Regulations 5 through the below-mentioned links:
Additional Rules for Regional Plan Area than Basic UDCPR Rules in UDCPR 2020
Additional Regulations for Thane, Raigad, Palghar Regional Plan in UDCPR 2020
Additional Regulation for Ratnagiri in UDCPR 2020
Additional Regulations for Satara in UDCPR 2020
Additional Regulations for Hingoli, Buldhana, Washim, Yavatmal, Nanded Regional Plan in UDCPR 2020
Additional Regulations for Raigad in UDCPR 2020
Additional Regulations for Solapur in UDCPR in 2020
Additional Regulations for Pune in UDCPR 2020
Additional Regulations in Aurangabad in UDCPR 2020
UDCPR 2020 Chapter 14 is all about the Special Schemes as per mentioned in the UDCPR
This is Applicable to all Planning Authorities and Regional Plan Areas except Municipal Corporation of Greater Mumbai, Other Planning Authorities/Special Planning Authorities/ Development Authorities within the limit of Municipal Corporation of Greater Mumbai, MIDC, NAINA, Jawaharlal Nehru Port Trust, Hill Station Municipal Councils, Eco-sensitive/Eco-fragile region notified by MoEF & CC and Lonavala Municipal Council, in Maharashtra.
Rule No. 14.3 Affordable Housing Scheme
i) The Authority may permit the implementation of the Affordable Housing Scheme in accordance with the provisions of these Regulations. Affordable Housing Scheme (hereinafter referred to as ‘the Scheme’) shall be permissible only on the lands situated within the limits of the Municipal Corporation.
a) Affordable Housing Scheme shall be permissible in Residential Zone only and on plots having access from an existing or proposed Development Plan Road having a width equal to or in excess of 18.0 m. or an existing road in respect of which Regular Line of Street has been declared under the relevant provisions of Maharashtra Municipal Corporation Act, for a width of 18.0 m.or more. However, in the case of a proposed road, the land under the said proposed road shall be acquired before the approval of building plans for the Affordable Housing Scheme.
b) The minimum plot area for the Affordable Housing Scheme shall be 4000 sq. m., excluding areas under D.P. Roads and D.P. Reservations, if any.
c) The plot under the Scheme shall be independent, unencumbered and contiguous.
d) The Scheme shall not be permissible in congested areas, demarcated as such on the Development Plan.
e) Maximum permissible FSI (including the basic FSI of 1.00) under the Scheme shall be 3.00 on the gross plot area, including mandatory layout recreational open space and Amenity Space. The FSI to be utilized shall be in the proportion of 1:3 for the Affordable Housing Component and the Free Sale Housing Component on 1⁄4th and 3⁄4th part of the land respectively. Thus, affordable housing and free sale housing shall be proposed on the same plot of land but in two separate, independently buildable pockets.
f) Under the Affordable Housing Scheme, up to 15%of the total built-up area of the Affordable Housing Component may be used for construction of shops / commercial use as per the direction of Urban Local Body and such commercial built-up area shall be handed over to the concerned ULB free of cost.
g) An Affordable Housing Unit shall be a self-contained dwelling unit of 27.88 sq.m. carpet area. However, the carpet area of a Housing Unit shall be 160 sq.ft./25 sq. mt. where the construction under the Rental Housing Scheme/Affordable Housing Scheme, as the case may be, has already commenced.
h) The amenity space for Affordable Housing shall be as per these regulations and it shall be proportionately provided in the area earmarked for the Affordable Housing Component and the area kept for the Free Sale Housing component.
Provided that where the Scheme is to be implemented on a plot in an Industrial Zone where the Planning Authority has duly permitted Residential users under the relevant provisions of the Development Control Regulations :-
i) No further area shall be required to be kept as amenity space under this Regulation for the Scheme if the area prescribed to be kept as amenity space while permitting residential users in the Industrial Zone is equal to or more than 10% of the gross plot area.
ii) Only the balance area shall be required to be kept as amenity space under this Regulation for the Scheme if the area of amenity space prescribed by the Planning Authority, while permitting residential users in the Industrial zone, falls short of 10%.
ii) a) Notwithstanding anything contained in the relevant provisions of the Development Control Regulations for the respective Municipal Corporation regarding the provision of Amenity Space in general, and also regarding permitting Residential users in Industrial zones, it shall be obligatory on the Developer / Owner to develop the amenity space for users (hereinafter referred to as prescribed amenity users) such as School, Play Ground, Garden, Health Care Facilities, Multipurpose Hall, Auditorium, etc. with the approval of Authority as per the specifications prescribed by the said Authority, subject to the condition that at least 50% of such amenity space shall be kept for open users, before seeking Occupancy Certificate for the Free Sale Housing Component of the Scheme, failing which the land under such amenity space shall be handed over free of cost to the Planning Authority and such land shall be developed by the Authority for the aforesaid prescribed amenity users only.
No compensation in the form of TDR shall be admissible to the Owner/Developer for the development of such prescribed amenities under this Regulation.
b) Irrespective of whether the Owner / Developer develops the prescribed amenity users as per the provisions of Clause (ii) above or fails to do so, the process of handing over the land under such amenity space, along with the developed prescribed amenities, where such prescribed amenities have been developed, shall be completed within one month from the date of application by the Developer / Owner for seeking Occupancy Certificate for the free sale housing component of the Scheme and if such handing over process is not completed within the said period, the occupancy certificate for the free sale housing component of the Scheme shall be withheld by the Authority till such amenity space, along with developed prescribed amenities, where such prescribed amenities have been developed, is handed over to the Authority.
c) Under the Affordable Housing Scheme, there shall be a welfare hall and a Balwadi at the rate of 30.0 sq.m. for every multiple or part of 200 residential units and an office for the Co-operative Housing Society at the rate of 30.0 sq.m. per every multiple or part of 500 residential units which shall be treated as a part of Affordable Housing Component and shall not be counted towards the FSI while computing 3.00 FSI on the site and shall be given along with layout / D.P. roads and shops, free of cost to the concerned ULB. These facilities shall be constructed at locations as suggested by the concerned ULB and shall be transferred free of cost to it.
iii) Under the Affordable Housing Scheme, off-site infrastructure charges at the rate of 5% of the land rate as given in the Annual Statement of Rates (ASR) prepared by the Inspector General of Registration, Maharashtra State, for the year in which Commencement Certificate is issued (without applying guidelines of ASR), subject to a minimum of Rs.2000/- per Sq.m., shall be paid by the Developer for the built-up area, over and above the normal permissible FSI. This amount shall be paid to the concerned ULB.
iv) Release of FSI under the Scheme shall be as follows :-
FSO for Affordable Housing Component and the Free Sale Housing Component under the Scheme shall be released in accordance with the following Table No. 14-S
Table No.14-S | |||
|---|---|---|---|
| Sr. No | Stages of Release of FSI | Affordable Housing Component | Free Sale Component |
| 1 | On Grant of Building Permission/Commencement Certificate up to plinth by Commissioner to the Affordable Housing Project | 3.00 | 1.00 |
| 2 | On Completion of 50% BUA of Affordable Component | -- | 0.75 |
| 3 | On Completion of 100% BUA of Affordable Component | -- | 0.75 |
| 4 | On handing over of 25 | -- | 0.50 |
| Total | 3.00 | 3.00 | |
Explanation - The FSI of 3.00 is to be calculated separately on one-fourth of the plot area for the Affordable Housing Component as well as three-fourth of the plot area for Free- Sale Housing component.
v) The Affordable Housing Component under the Scheme shall be handed over along with the 1⁄4th part of the total plot of land, free of cost to the concerned ULB.
vi)(a) The affordable housing stock created under the scheme shall be allotted by the concerned ULB as follows :
Table No.14-T | |||
|---|---|---|---|
| Percentage | Allotment to | Category of stock | Rate of allotment |
| 50 | Respective ULBs for use as PAP ownership free of cost tenements or staff quarters or transit accommodation. | Ownership | Free of cost |
| 25 | Government of Maharashtra and its statutory bodies/Govt. undertaking for use as PAP tenements or staff quarters or transit accommodation, staff quarters, | Ownership | Free of cost |
| 25 | As affordable housing by MHADA subject to the general or specific direction of the Government | Ownership | Free of cost to MHADA which shall dispose of the same as per its policy and drawl of lots |
(b)The affordable housing stock shall be disposed of as per the prevailing policy of MHADA regarding pricing and disposal of its housing stock meant for affordable housing. Each project approved under the Scheme shall be brought to the notice of the government of Maharashtra and its statutory bodies/Government undertakings by means of press advertisement and if the Government of Maharashtra or any of its statutory bodies/Government Undertakings doesn’t place firm requirements for the housing stock earmarked for them in the Scheme before the completion certificate/occupation certificate for the said scheme is issued, the same shall come to the share of MHADA for outright sale as per the prevailing policy of the MHADA.
vii)(a) The other aspects of the development of the affordable housing scheme, not specifically dealt with hereinabove, shall be as per the relevant provisions of UDCPR.
b) It shall also be permissible for the developer/owner to utilize the FSI available for free sale housing component, fully / partly for any other user otherwise permissible as per UDCPR.
c) In case, owing to genuine hardship and site conditions, relaxation in marginal open spaces is sought by the developer/owner, the authority may consider such request, using its discretionary powers under the UDCPR, subject to the condition that in no case shall the clear marginal open space be reduced below 6.0 m. No premium shall be charged for granting such relaxation in marginal open spaces with respect to the affordable housing component of the scheme.
Related Regulations
You can visit our other blogs related to Regulations 14 through the below-mentioned links:
Integrated Logistic Park (ILP) in UDCPR 2020
Industrial Township under Aerospace and Defense Manufacturing Policy in UDCPR 2020
Slum Rehabilitation Scheme for Other Municipal Corporations in UDCPR 2020
Slum Rehabilitation for Pune, PCMC, PCNTDA, and Nagpur in UDCPR 2020
Urban Renewal Scheme in UDCPR 2020
Conservation of Heritage Buildings, Precints, Natural Features in UDCPR 2020
Pradhan Mantri Awas Yojana in UDCPR 2020
Integrated Information Technology Township (IITP) in UDCPR 2020
Integrated Township Project (ITP) in UDCPR 2020
Transit Oriented Development (TOD) in UDCPR 2020
When ever you see a town planning map or a blue print, you come across various terms like open space, amenity space. Here is details explanation in common man’s language for construction related building rules.
FSI (Floor Space Index)
- In general language FSI means permissible built up area on any plot. It is calculated by dividing Built up area by Plot Area.
- FSI = built up area/Plot area.
- Eg. – If permissible FSI for a plot of 1000 sq.ft. is 1.10, then we can construct 1100 sq.ft. of built up area. (say 225 SqFt on 4 floors or 550SqFt on 2 floors)
- Ducts, Parking floor, basement, architectural treatment are not considered while calculating FSI.
- Depending upon planning authority by-laws, balcony, terrace, staircase, lift, lift machine room are deducted from FSI on payment of premium.
Open Space
- Open space is the space left for recreational activities for the user of that plot. It remains part of the same land under ownership of society.
- Generally we have to leave 10% of total plot area for any building or layout permission.
- Depending upon by-laws smaller plots, gunthewari plots, N.A. plots do not require open space area.
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Amenity space
- Generally for plot above 1 acre require 15% amenity space.
- Amenity space is a space to be left for government for planning various public amenities like school, hospital library, fire stations, police chowki etc.
- This space is to be handed over to govt. and owner gets FSI as compensation for land. (In short there is only loss of space but no loss of FSI)
- N.A. plots and smaller plots do not require amenity space.
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Paid FSI (Fungible FSI)
- It is additional FSI on any plot after payment of premium amount to planning authority.
- This premium amount depends upon ready reckoner rate of same land.
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TDR (Transferable development rights)
- Due to planning authority reservations FSI of one land cannot be utilized entirely on same plot. Hence Government allow plot holder to sell or transfer FSI of his plot. This is called Transferable Development Rights. Buying TDR is like buying virtual land.
- Buyer of TDR can do extra construction on his land.
- One cannot load more TDR than permissible on that land. Maximum Permissible TDR on any plot depends upon Access Road, Land Zone etc…
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Road Widening
- Area of plot falling under proposed or existing road is called as road widening area.
- FSI of this area can be utilized on same plot or converted into TDR.
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Carpet area
- Before RERA Carpet area was considered as tileable area in property. It includes room floor area, Balcony area, terrace area, tile area at door jams etc…
- But After RERA (Real Estate Regulatory Act 2016) have modified carpet area concept a bit.
- According to RERA, carpet area include following things
- Room Area
- Internal wall area (wall between 2 rooms of same apartment)
- Dry balcony area (separately mentioned)
- Enclosed Balcony area (separately shown if any)
- Terrace area (separately mentioned)The only difference between RERA carpet & old carpet is that internal wall area is added in RERA carpet.
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Built up Area
- Built up area term is most commonly used term in constriction industry. & at same time it has various meaning at various situations. Hence it is necessary to clarify area included or excluded while discussing with built up area. eg –
- For government approvals it is the area covered by a building on all floors including cantilevered portion, mezzanine floors if any but excepting the areas excluded specifically from FSI.
- For buyer / user – It is usable construction area which includes parking, floor area, but excluding footing & foundation area.
- For contractor it is total construction area including parking, 50 % footing, water tank etc.., but excluding top terrace area.
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Conveyance Deed
Conveyance deed is transfer of land in name of owner of constriction refer our conveyance deed page in redevelopment section for more detail
Building Control Line
It is the line up to which we can build construction according to planning authority / or any government authority.
Non Agriculture (NA)
- Any land ( except land in Gaothan area) is by default agriculture land in India. It is assumed as non agriculture land only and only after taking NA permission (Non Agricultural use permission) from collector.
- A copy of land conversion is called as NA order.
- For NA land zone plays important role. (Agriculture, industrial , residential)
- Depend upon zone NA can be done. Eg – Industrial NA, farmhouse NA, residential NA, commercial NA.
- NA and R-zone are commonly misunderstood.
- In simple words, NA is procedure to change tax on any land due to change in use of land.
- NA land not necessary to be residential land all time, and similarly residential land not necessarily to be NA land.
- A land which is in residential zone, but its use according to collector/revenue department is agriculture, then the land is not NA. (but this land can be converted into NA after completing NA procedure.)
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Side Margin
Side margin is distance to be kept from plot boundary to building line.
Ready Reckoner Rate
Government rates of land, property is called as ready reckoner rate. These rates are published and regulated by the respective state government. (in our useful link page, you can find link for ready reckoner rates by Maharashtra government.
R zone (residential)
It is a zone demarcated as residential area in development plan mostly it shown in yellow color any agriculture land cannot converted in residential zone it agriculture / vanikaran land must pass certain criteria for zone conversion (you can use our site feasibility service to know whether your land can be converted or not )
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Residential zones – R1 / R2
- Residential Zone R1 includes Residential plots abutting on roads below 9 m. in congested area and below 12 m. width in outside congested area
- Residential Zone R2 includes Residential plots abutting on road having existing or proposed width 9 m. and above in congested area and 12 m. and above in outside congested area