BBMP property tax: How to pay property tax in Bangalore and all about BBMP property tax calculator

[ecis2016.org] BBMP property tax is a recurring charge that home owners in Bangalore have to pay every year. However, the tax amount varies from one location to another. This is a guide to paying property tax in Bangalore

Owners of residential properties in Bengaluru are liable to pay property tax to the Bruhat Bengaluru Mahanagara Palike (BBMP) every year. The municipal body utilises these funds to provide civic facilities, like the maintenance of roads, sewer systems, public parks, education, etc. The BBMP property tax is calculated based on the Unit Area Value (UAV) system. It is mandatory for a property owner to pay the property tax every year, even for a vacant property.

In March 2017, the commissioner of the BBMP announced that home owners, who had defaulted on their payment of property tax for the previous year, would be declared as offenders and their movable assets, like furniture, would be seized. The BBMP estimated that at least 20,000 property owners in the city had failed to pay their tax for one or more years.

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In this article, we discuss how citizens can pay property tax online in Bangalore.

BBMP property tax: How to calculate property tax? 

The BBMP follows a Unit Area Value (UAV) system, for calculating the amount of property tax in Bangalore payable on residential properties. The UAV is based on expected returns from the property, depending upon its location and usage. The calculation is on a per sq ft, per month (unit) basis, for a particular location or street (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 Bangalore published by the Department of Stamps and Registration. The property tax rate will differ, according to the zone in which the property is located.

The formula used to calculate property tax Bangalore is as follows:

Property Tax (K) = (G – I) x 20%

Where,

G = X + Y + Z

and I = G x H/100

G = Gross unit area value

X = Tenanted area of property x Per sq ft rate of property x 10 months

Y = Self-occupied area of property x Per sq ft rate of property x 10 months

Z = Vehicle parking area x Per sq ft rate of vehicle parking area x 10 months

H = Percentage of depreciation rate (depends upon the age of the property).

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BBMP property tax calculator

A comprehensive guide to all the values is available on the BBMP website, along with a property tax calculator, which will help citizens make property tax payment online in Bangalore.

The BBMP property tax is computed using three methods as explained below:

• Annual Rental Value System: In this system which is followed in cities like Chennai and Hyderabad, the authority decides gross yearly rent for a property. The tax is levied on the basis of the anticipated value.
• Capital Value System: In this system, the market value of a property is used to determine the applicable property tax. Under this system, the stamp duty department in the region decides the market value of properties.
• Unit Area System: The property tax is levied based on the property’s per unit price of carpet area. To computer the tax applicable, the property value is multiplied by its carpet area. This system is adopted in Bangalore and other cities like New Delhi.

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BBMP property tax online: How to pay property tax in Bangalore?

The most convenient way for property tax payment in Bangalore, is online on the BBMP website, with your credit or debit card or through internet banking. (Visit https://bbmptax.karnataka.gov.in/)

You can retrieve your property details through your Base Application Number or Property Identifiers (PID).  You can make the payment towards your BBMP property tax online, only if you have already paid the property tax at least once, by using your Sas Base Application or PID number.

Step 1: Visit the BBMP Property Tax portal https://bbmptax.karnataka.gov.in/

Step 2: Enter the PID and retrieve the tax bills.

Step 3: Choose the payment method and make the transaction. Download the print receipt and save or print it for your records.

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BBMP property tax: How to get PID online?

Visit BBMP official website 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 on the BBMP portal.

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BBMP property tax forms

All tax payers are required to pay their outstanding property tax, either manually or online. For paying the property tax in Bangalore, you need to fill up the forms specified above:

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BBMP property tax rebate

Property owners paying property tax to BBMP in a single instalment before the due date are eligible to get a rebate of 5%. However, delay in the payment of BBMP property tax will result in an interest rate of 2% per month. Property owners can pay the property tax in two instalments to avoid interest. However, one will not be eligible for a rebate.

BBMP property tax online: How to download tax receipt?

Once the BBMP tax is paid, the receipt can be obtained online. Visit BBMP Property Tax portal and click ‘Downloads’. Select your option from the drop-down menu. You can print the BBMP tax 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. This is the procedure for users to get latest receipt for BBMP property tax online payment 2021-22 and 2020-21.

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BBMP property tax: Types of properties that attract property tax

Owners of the following properties are liable for BBMP property tax payment:

• Residential properties, including self-occupied property or rented out properties
• Flats
• Office buildings
• Factory buildings
• Godowns
•  Shops

How to pay BBMP property tax through offline mode?

Property owners can pay their property tax for apartments or other properties in Bangalore to the BBMP through offline mode. For this, they must approach the Assistant Revenue Officer office or Bangalore one centre and submit the form. The payment can be done through any mode, including demand draft.

Further, many banks have been authorised to collect the BBMP property tax.

BBMP property tax news

Update on May 1, 2022

BBMP extends the rebate period on property tax payment till May 31

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The Bruhat Bengaluru Mahanagara Palike (BBMP) has issued a notification stating that is extending the rebate period till May 31, 2022. Thus, property owners in Bangalore can continue to avail 5% rebate against the full payment for 2022-23. As per the BBMP instruction to the taxpayers, in case the property tax return for the previous financial year has been filed, the property tax for the current year will be accompanied with the return and dues for the previous years, if any. If taxpayers have filed revised return for any year, then the return for the current year will be based on the revised return filed. If any tax was paid in advance and if there is a balance after adjusting for the tax for the previous years, the amount will be paid through Cheque or DD after due verification.

If property tax is paid to BBMP in two installments for the existing year, same form is used for second installment. Taxpayers can avail a rebate of 5% on total property tax payable if they are paying full amount in one installment. For arrears payment, one can pay generating challan for each previous year. At present, one can make payment towards property tax if they have already paid the property tax at least once, by using their SAS Base Application Number or PID Number. If one is paying through DD or Cash, the receipt can be generated instantly. However, for payment through cheques, the receipt will be generated only after the realisation of the cheque amount.

Update on January 10, 2022

BBMP to incur loss of Rs 270 crore over property tax blunder

As per a report by Deccan Herald, the Bruhat Bengaluru Mahanagara Palike would lose Rs 270 crore levied as penalty and interest from property owners, owing to a property tax mess.

The issue is related to the Self-Assessment Scheme (SAS) introduced by the civic body in 2016 that enables citizens to choose between various zones based on their nature of property in the city. Due to a technical glitch, citizens selected different zones and ended up paying lesser. On realising this mistake three years later, BBMP started notifying citizens for defaulting on BBMP property tax payment and levied heavy fines of up to five times. It also levied 2% interest per month as per the provision under the Karnataka Municipal Corporation Act. BBMP had identified as many as 78,254 property owners for defaulting on their tax liability and served notices to around 22,000 owners. However, due to strong opposition from the citizens, which was escalated to higher authorities, the civic body refrained from serving further notices. About only 11,000 owners made the payment, amounting to Rs 20.5 crore.

BBMP nets Rs 2,141.51 crores in property tax, achieves 53% of target

October 20, 2021: The BBMP has netted Rs 2,141.51 crores in property tax, till September 22, 2021, thus, achieving 53% of the target of collecting Rs 4,000 crores in property tax. BBMP chief commissioner Gaurav Gupta has directed revenue officials to identify defaulters in each of the eight zones, issue notices and recover the tax dues. The tax collected is reportedly higher than the amount collected during the same period last year. The target was Rs 3,500 crores last year and the tax collected was Rs 2,780.9 crores.

Recently, the authority issued over 78,500 notices to property owners over an alleged mismatch in the tax zone classification. They were asked to pay the difference in tax along with penalty and interest for four years, since the tax zone reclassification was done in 2016-17. It would bring in over Rs 360 crores of revenue to the authority, including Rs 120 crores in property tax and Rs 240 crores in penalties and interest, as per a senior official.

BBMP tax collection higher, in spite of COVID-19

As of January 28, 2021, the BBMP had collected Rs 2,483 crores, as against Rs 2,467 crores, during the corresponding period in 2019-20. The body was in dire need of additional revenue, especially after the Coronavirus pandemic but in spite of the pandemic, its collections were not affected. About 19 lakh-odd properties are under the BBMP.

In 2021, the revenue through property tax may see an upswing. By March 31, 2021, the BBMP would have already exceeded last year’s record of Rs 2,606 crores. Mahadevapura was the top zone in the city’s eight zones, with property tax collection at Rs 716.25 crores, while the east zone’s collections were worth Rs 500.23 crores, followed by the south zone with Rs 388.16 crores, the west zone at Rs 269.08 crores, Bommanahalli zone at Rs 266.54 crores, Yelahanka zone with 218.69 crores, Raja Rajeswari Nagar  with Rs 175.77 crores and Dasarahalli Zone with Rs 71.45 crores.

BBMP issues notices

About 78,000 property owners have been served notices for furnishing incorrect details of their properties in the self-assessment scheme. Such defaulters will be asked to pay the difference in the amount and also an added penalty of 2% for a period of two years.

Starting April 1, 2021, the BBMP has decided to roll out an automated system, wherein property details will already be mentioned and owners will simply have to pay the tax.

Extra charges for handling waste

Bengaluru property owners will now have to pay an additional fee in their property tax 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 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.

Double property tax for building plan violations

In 2020, the cabinet decided that property owners who violated the building plans would be penalised and would have to pay double property tax. Law minister JC Madhuswamy said that this proposal was approved and the amendment to the KMC to enable the BBMP to levy this penalty was done.

No hike in BBMP property tax 

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 in 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.

Amendments to KMC Act

An amendment to the KMC Act (Karnataka Municipal Corporations Act) also allows BBMP officials to attach immovable properties of defaulters. The proposal of including the provision of the Land Revenue Act into the KMC Act and thereby, empowering the BBMP officials was made by the commissioner and given its assent by the government. The BBMP expects to meet a revenue target of Rs 5,500 crores in 2020.

Integrated Command and Control Centre (ICCC) and smart city project

A Rs 109-crore project – the Integrated Command and Control Centre – that will be the brain of the smart city project, has been approved. Decisions with respect to the city management and disaster management will take place here and a common helpline number, a dedicated mobile application, as well as a web portal, will also come up. The project, which is funded by the Bengaluru Smart City Ltd, will enable the BBMP, BMTC, BWSSB, BESCOM, City police and Namma Metro, to come under one platform. The command centre will focus on mobility, solid waste management and health. Resultantly, this will improve the livability quotient of the city. Citizens may also be able to find grievance redressal online.

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