Bangalore Property Tax

Overview

Taxes are one of the major sources of revenue for the Government which helps them in funding various amenities to be provided to the general public of the Country. Taxes are levied on various things such as income tax on income, Goods and Service Tax on goods or services, etc. Certain taxes are governed centrally and certain other taxes are state-specific and revenues are received by various states for funding the state budget. Bangalore property tax is one such tax levied by the State Government through the local body on real estate including vacant land year every year. This tax is imposed on the owner of the property.

  • The Government of India set up a local Municipal body to ensure better administration of a particular area.

  • Such entities are also responsible for collecting revenues from the residents of that region or city through property tax.

  • Bruhat Bengaluru Mahanagara Palike (BBMP) is the state municipal body that accepts BBMP tax payments from all property owners of this city.

  • The fund is utilized to maintain and improve civic bodies such as cleaning localities, beautification of city, repair roads, etc

About Bruhat Bengaluru Mahanagara Palike Property Tax

  • Owners of properties in Bengaluru are liable to pay property tax to the Bengaluru Municipality body called Bruhat Bengaluru Mahanagara Palike (BBMP) every year. The municipal body utilizes these funds to provide civic facilities in Bengaluru. The BBMP follows the Unit Area Value (UAV) system, for calculating the amount of property tax. The UAV is based on expected returns from the property, depending upon its location and nature of the usage of the property.
  • The computation of property tax is done by multiplying the area of the property by per sq ft tax rate per month (UNIT) that is fixed based on the location of the property (AREA) and multiplied by the current property tax rate (VALUE). The jurisdiction of the BBMP is divided into six value zones, based on the guidance value published by the Department of Stamps and Registration. The property tax rate will differ, according to the zone in which the property is located.

What is BBMP Property Tax

  • Bangalore property tax online is a means to raise revenue from the property owners of the state to provide better infrastructure and elevate living conditions.

  • Every state levies a certain property tax on all “real” or tangible assets, including commercial, residential, and rented out property.

  • Every year, property owners need to pay their allotted BBMP house tax within the due day. Failure to pay this tax attracts penalty charges on the due amount and imprisonment in some extreme cases.

  • To avoid such a situation, you must learn about BBMP tax calculation. This would help you make a better decision. It is always good to make better research grow rather than simply deciding without any better knowledge at all.

Payment of BBMP Property Tax

  • Property tax period starts from April of one year and ends in March of subsequent year and tax to be paid within 30 April of the subsequent FY of the financial year (FY). The current property tax FY is 2021-22

  • BBMP also offers a 5% rebate on property tax paid in one installment within the due date stipulated by BBMP

  • Delayed payment of property tax attracts interest at 2% per month or 24% per annum

  • You can pay property tax online Bangalore in two installments without any interest and a rebate

  • Different calculation patterns are relevant in India, and Bangalore Municipality follows the Unit Area Value (UAV) system.

  • Here, the tax amount is determined by the approximate return from a concerned property, which further depends on the property location and the purpose for which it is used.

To simplify this house tax Bangalore process, follow the steps below:-

  • Know the necessary details of the property like type, depreciation, value per unit, etc.

  • Multiply values of unit area and built-up area and then multiply it by 10.

  • Subtract depreciation from this value to derive annual property value.

  • Find 20% of the annual value to estimate yearly tax.

  • To get Cess, calculate 24% of annual property tax.

  • Add Cess and property tax to arrive at total BBMP tax payable.

  • Use the BBMP property tax calculator to simplify this calculation and get an accurate result.

Where can you pay BBMP Property Tax

  • The property taxpayers can make Bangalore property tax payments both online and offline.

  • Visit the following places to pay BBMP property tax after filling up the application form.

  • Office of assistant revenue officer

  • Bangalore 1 center.

Pay there with a demand draft or a payment card. Alternatively, the following banks are authorized to collect BBMP property tax:-

  • Axis Bank

  • ICICI Bank

  • Canara Bank

  • HDFC Bank

If you have a property tax Challan, make the payment to any of the following banks:-

  • SBI

  • Maharashtra Bank

  • Corporation Bank

  • Indian Overseas Bank

  • IDBI

  • Indian Bank

  • IndusInd Bank

  • Kotak Mahindra

To make the BBMP house tax payment, residents of Bangalore also need to be aware of its deadline.

Extra charges for handling waste

Bengaluru property owners will now have to pay an additional fee in their Bangalore property tax payment bill, for doorstep waste pickup service. Residential property owners will have to pay Rs 200 per month, while commercial property owners will be charged Rs 500 per month, for this service. This will be in addition to the Solid Waste Management (SWM) cess, which is in the range of Rs 200 – Rs 600, currently. There has been a proposal to waive 50% SWM cess for societies that are composting waste but it is yet to be approved

Conclusion

  • Plans were on the anvil to hike the property tax in Bangalore by 15%-30% for both residential and non-residential properties. BBMP special commissioner Basavaraju said that a tax revision was due in 2020 but it could not be carried out due to administrative reasons. As per the Karnataka Municipal Corporation Act (KMC), 1976, the BBMP can revise the property tax every three years. The move is important, to enable the cash-strapped civic agency to meet its revenue targets.
  • In 2019-20, the agency’s revenue target was Rs 3,500 crores but it could only earn Rs Rs 2,669 crores. The property tax hike was to be effective from March 2021. However, property owners can heave a sigh of relief as the plan has been shelved for now.

Questions and answers

How to pay BBMP Property Tax?

Bangalore tax payment can be paid either manually or online.

Online mode

  • Go to the BBMP property tax portal https://bbmptax.karnataka.gov.in/.

  • Enter earlier SAS Application Number or PID (both available on the last receipt) and click on ‘Fetch’ which will display property owner details 

  • Click on ‘proceed’ if the details displayed are correct and no changes in the property and this will take you to form IV

  • If there are any changes in the property such as property usage, built-up area, or its occupancy, check the box provided on the page and then click on ‘proceed’ which will take you to form V

  • Ensure details pre-filled in the form displayed including tax computation are correct and/or modify relevant details in case of change and proceed to pay either fully or in installments and either via online or via challan

  • Choosing an online payment option will take you to the payment page where you can choose to pay either through net banking or credit/debit card and complete the payment. Once the payment is completed, a receipt number will be generated and it takes 24 hours for an E-receipt to be available on the portal. Receipt can be printed/downloaded here

  • If you face any problem while paying online and payment is incomplete, you can resume the payment using the current SAS Application number here

  • Further, for any problems faced while using online mode, you can contact BBMP either at [email protected][email protected] or raise a complaint here

Manual mode

Fill all the applicable forms take them to either of the following and pay either by card or a Demand Draft:

Bangalore 1 center

Assistant Revenue Officer offices

How to get a PID?

  • Visit BBMP's official website https://bbmptax.karnataka.gov.in/ and select ‘Citizen Services’. 

  • You will be redirected to a new page where you have to choose ‘GIS-Enabled Property Tax Information System’. Register through your first number and mobile number. 

  • The property mapped on your mobile number will be shown on the map. 

  • If your mobile number is not in the records, you can enter your previous payment Application ID, your new PID number will be displayed.

How to Download BBMP property tax receipt?

  • Visit the BBMP Property Tax portal https://bbmptax.karnataka.gov.in/ and click ‘Downloads’.

  • Select your option from the drop-down menu.  

  • You can print the receipt, Challan, or application through this page.

  • You need to enter the assessment year and application ID to view the document you want to print or save.