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  • BBMP Property Tax

    Bangalore Property Tax:

    With the popularity of Bangalore rising as the destination for work, there are a lot of people who are settling down in the city. When they settle down in Bangalore they, just like every other person in the city, need to pay property tax in Bangalore. The process of paying the property tax has been simplified a lot and now even includes the ability to pay the tax online or through dedicated banks or Bangalore 1 centers. There are even specific banks that have been authorised to collect property taxes from people. To be able to pay the tax, you will first need to know the forms that will be needed and how the tax is calculated.

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    BBMP Property Tax Forms:

    There are 6 forms that are essential to paying property taxes in Bangalore. They are Forms I, II, and III along with Form IV and Forms V and VI.

      • Form I:

    Form I is used to when the property owner has the properties PID. The PID (Property Identification Number) is a unique ID assigned to each property and contains information about the ward, street and plot on which the property stands.

      • Form II:

    Form II is used when the owner does not have the PID but does have a khatha number. Khatha number is the number of the khatha certificate that is issued for each property and contains all the details relevant to that property.

      • Form III:

    This is the form that can be used to pay property tax when the owner has neither the PID or the khata number.

      • Form IV:

    Form IV is a white form and is used when there has been no change in the proerty details. These details can be in realtion to increase or decrease in the size of the property, or a change in its statues.

      • Form V:

    This is the blue form that can be used when there has been a change in the property. For example, if the owner has added a new floor, or demolished the house or the property classification has changed from residential to non-residential. This form is also used when a property changes status from under construction to constructed.

    • Form VI:

    This is the form that will be used when the property under assessment is exempt from paying property tax. Even if it is exempt from property tax, it will still have to pay a service charge that can be paid using this form.

    BBMP Property Tax Calculation:

    The property tax in Bengaluru can be calculated using the following steps.

    Step 1 Make a note of the built up area of the property, value per unit area and the depreciation that is applicable.
    Step 2 Multiply unit area value, and built up area and then multiply it by 10 (for 10 months)
    Step 3 Reduce the depreciation from the value in step 2 and you will arrive at the total annual value of the property.
    Step 4 Take the total annual value calculate 20% of it to get the property tax.
    Step 5 Take the property tax and calculate 24% of it to get the cess applicable.
    Step 6 Add the property tax to the cess to arrive at the actual payable tax.
    Step 7 If you are paying the tax before the due date of 30th April of the assesment year then you are eligible for a 5% rebate
    Step 8 Reduce 5% from the value arrived at in Step 6 to get the final amount payable.

    Points to Remember while Calculating Property Tax:

    When you calculate property tax, there are some things you need to keep in mind while doing your calculations.

    These are:

    • Area used as open car parks or cars parked in verandas are not to be included in the built up area. If it is not mentioned in the deed or the plan, you can calculate the area used and subtract it from the built up area.
    • If the house if a residential property but not occupied you can declare it as self-occupied and then calculate the tax.
    • If you finish building after the 1st of October then the tax has to be paid for half the year. If it is finished before the 1st of October then the full annual tax has to be paid.
    • If you have demolished a building then you will still have to pay property tax for vacant land.
    • BBMP has introduced a cess for solid waste management and that too will have to be added to the tax payable but not if the property is vacant land.
    • If you are late in paying the property tax then you will have to add an interest of 2% per month to the payable tax for every month you delay. The annual interest rate is 24%.
    • The property tax can be paid as a whole for the entire year or twice in a year, once for each half of the year.
    • If you are paying the tax in 2 instalments then the forms have to be submitted twice.

    Only payments of up to Rs. 1,000 can be paid by cash. Payments exceeding this value will have to be made via credit/debit cards, online payments or demand drafts drawn in favour

    How to Pay Property Tax in Bangalore?

    There are two main ways to pay property taxes in Bengaluru. The first is the manual method and the second is the online method of tax payment.

    To pay the property tax the manual way, you will need to fill out all the applicable forms and take them to the authorised centers to pay the tax. The tax can be paid via card or demand draft at these centers. These centers are:

    • Bangalore 1 centre
    • ARO offices

    There are some banks also that have been authorised to collect the tax.

    These banks are:

    • Canara Bank
    • Corporation Bank
    • HDFC Bank
    • IDBI Bank
    • Induslnd Bank
    • Indian Overseas Bank
    • Kotak Mahindra Bank
    • Yes Bank
    • ING Vysya Bank

    BBMP Property Tax Online Payment:

    To pay the tax online, all you need is your old and new PID numbers or the base application number. Once you have these details, you can go to the BBMP site and enter them to retrieve the details of the tax due on the property and instruction for paying it online.

    BBMP Property Tax Receipt:

    The tax receipt issued by the BBMP (Bruhat Bengaluru Mahanagar Palike) will contain all the details about the payment. These details include the application number, payment location, the assessment year, the tax payable, the cess applicable, the total tax payable, any advances paid etc.

    If the payment is made via cash, demand draft or credit/debit cards then the receipt will be issued immediately. If it is made online then the receipt will be issued as a soft copy which can be saved and printed out at a later date.

    Points to Remember while Calculating Property Tax:

    When you calculate property tax, there are some things you need to keep in mind while doing your calculations.

    These are:

    • Area used as open car parks or cars parked in verandas are not to be included in the built up area. If it is not mentioned in the deed or the plan, you can calculate the area used and subtract it from the built up area.
    • If the house if a residential property but not occupied you can declare it as self-occupied and then calculate the tax.
    • If you finish building after the 1st of October then the tax has to be paid for half the year. If it is finished before the 1st of October then the full annual tax has to be paid.
    • If you have demolished a building then you will still have to pay property tax for vacant land.
    • BBMP has introduced a cess for solid waste management and that too will have to be added to the tax payable but not if the property is vacant land.
    • If you are late in paying the property tax then you will have to add an interest of 2% per month to the payable tax for every month you delay. The annual interest rate is 24%.
    • The property tax can be paid as a whole for the entire year or twice in a year, once for each half of the year.
    • If you are paying the tax in 2 instalments then the forms have to be submitted twice.
    • Only payments of up to Rs. 1,000 can be paid by cash. Payments exceeding this value will have to be made via credit/debit cards, online payments or demand drafts drawn in favour of “Commissioner, Bruhat Bangalore Mahanagara Palike”.

    News About BBMP Tax

    • Large Properties to be Re-Audited by BBMP

      Large properties such as tech parks and malls will be re-audited by the BBMP for assessment of property tax. Within a period of 2 months, survey of large properties will be completed as per the plan. The BBMP has planned on conducting surveys of 51 malls, 4,406 apartments, 77 tech parks and 4834 industrial units. BBMP hopes to discover cases of tax evasion and under declaration. The cross-verification process is mandatory as per SAS for Property Tax.

      22nd November 2016

       
    • BBMP accepting demonetized notes till 24th November

      The Bruhat Bengaluru Mahanagara Palike (BBMP) issued a circular on Wednesday to inform citizens that it will be accepting the demonetized Rs.500 and Rs.1,000 currency notes till November 24th for the payment of BBMP related statutory payments, such as, property tax, building plan approval, hoarding tax, advertisement tax, etc. This circular comes in light of a notice by the Ministry of Finance on November 14th, which extended the date of making payments to state and central bodies till November 24th.

      22nd November 2016

       
    • Development Minister suggests BBMP to outsource tax collection

      Development Minister in Karnataka, K J George has suggested the BBMP to look into the possibility of outsourcing the tax collection process to a third party. The idea is to make the process as holistic and effective as possible. The minister also asked authorities to ban paper posters and to encourage flexes and hoardings so that the face of the public places does not get ruined. He has also asked authorities to be more vigilant during night when cases of offenders sticking posters on public property are recorded the most.

      23rd October 2016

       
    • 20K defaulters owe Rs.965 Crores to BBMP

      Around 20,000 tax payers owe an approximate total of Rs.965 Crore to the BBMP. BBMP spokesperson said that the amount includes both penalty as well as arrears. Options to outsource the tax collection procedure are also being explored so that the civic body can maximize tax collection. For tax collection through advertising, the idea is to file criminal charges against people who advertise illegally. Another idea is to select and reserve special advertising spaces for Kannada films as well as political parties.

      23rd October 2016

       
    • Zero Percent Interest to be Paid as Penalty For Property Tax Payment to BBMP

      For those people who own properties in the city of Bengaluru and have not paid their BBMP property tax in the 1st term can pay it in December, without having to pay any interest on the sum. The 2 percent interest charged for every month post period of rebate was done has been removed to encourage people to pay up their liabilities in property tax, in the city.

      Bruhat Bengaluru Mahanagara Palike (BBMP) was able to collect over Rs 1,555 crore in property tax, in the first terms and target around Rs 1,500 crore for the 2nd term. Based on the Karnataka Municipal Act, people who need to pay property taxes to the BBMP can do so in 2 installments, one before May 30, and for the second term by November 29 for each financial year. There is also the option to pay the charges in one installment as well, for the whole year.

      4th October 2016

       
    • PID Info to be released by BBMP before August 15

      The BBMP (Bruhat Bengaluru Mahanagara Palike) is aiming to put Property Identification Details (PID) on the basis of GIS and make it accessible for the masses by this Independence Day as strictly directed by Mr. N Manjunatha Prasad, Commissioner of BBMP. Facts regarding 16.09 lacs possessions, such as tax, plot dimension, net area etc., will be released for public inspection on the Palike online portal. A unique identification number is allotted to each property. Once the information goes public, they will invite public feedback, based on which the validation will be done.

      8th August 2016

       
    • BBMP looks for a way to appraise Property Tax Records from this Fiscal

      Bangalore Municipal Corporation will complete auditing their property tax books for the first time to zero down on the tax evasions and make the accruement of tax failsafe. Prior to the digitalization of property tax collection, the entire process was done manually. Property tax revenues have never been appraised in manual collection. People only receive receipts for upfront payments; but whether they made their way to the BBMP's nodal was not monitored. It was BBMP Special Commissioner (Revenue Department) Ms. V Rashmi, who insisted on a separate audit to once and for all clean up the structure.

      13th July 2016

       
    • HC Dismisses Petition Against Property Tax Hike in Bengaluru

      Karnataka High Court has dismissed a petition filed by a septuagenarian against property tax hike by Bruhat Bengaluru Mahanagara Palike (BBMP).

      The petition, filed by 79-year-old MR Srinivasan, challenged the property tax increase and sought to have the tax collected through self-assessment system as per the law.

      The High Court Bench, however, asked the BBMP Commissioner to consider the pertinent points of the petition and hear out the petitioner as well as other taxpayers.

      Srinivas said that while the property tax in his area – AGS Layout – was raised by 20 percent in 2009 and then again by 45 percent in 2016, the corporation did nothing to improve the civic amenties such as roads, footpaths and drains in the area.

      23rd June 2016

       
    • BBMP Property Tax Discount Extended Till June 30

      The Bruhat Bengaluru Mahanagara Palike (BBMP) council on Tuesday approved extension of the 5 percent discount on property tax payments until June 30, from May 31.

      Mayor BN Manjunath Reddy said the BBMP was extending the discount period taking ownership of the technical glitches that led to delay in updating of online payment systems for property tax. The online payment, which was recently introduced, throws up problems while entering information of newly constructed buildings or while making the payment at bank branches, among others.

      The BBMP is working on a handbook for online payment of property tax, which will be released soon.

      15th June 2016

       
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