A property tax is a recurring charge that the owners of the property are expected to pay each year and the property tax amount varies as per the locations.
This article will focus on the Bangalore property tax alone and act as a guide to help the homeowners to pay their property tax with much ease and comfort. So, read on and know everything that is expected as per the tax payment of the property in Bangalore.
What Is BBMP? And What Are Their Services?
In Bangalore city, the owners of residential properties are liable to make a property tax payment to the Bruhat Bengaluru Mahanagara Palike (BBMP) each year, this is used by the municipality to provide civic facilities such as maintenance of roads, planning better sewer systems, public parks, education, etc.
As for the year 2018 in the month of November, BBMP had proposed an amendment in the Karnataka Municipal Corporations Act that mentioned doubling the property tax payment for the owners who had violated the laws or have deviated from the already approved plan. Adding on, even the civic officials who were found not abiding by the actions that were to be taken against such owners had the fear of going to jail.
How Can The Owners Of The Property Calculate The Property Tax In Bangalore?
BBMP follows a Unit Area Value (UAV) system to calculate the property tax payment that the owner of the property must make. This system is based on the expected returns from the property as per the location and usage of the residential property, which means, the amount of property tax would differ according to the zone. Also, the jurisdiction of the BBMP is divided into six value zones as of the guidance value that was published by the Department of Stamps and Registration.
To help you understand better, here is the formula that is used to calculate property tax:
Property Tax (K) = (G – I) x 20% ,
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
1) Pay Property Tax Online through BBMP?
The best and the easiest way to pay property tax is via the BBMP website, using a credit or debit card, or even by internet banking.
Note – The property details can be incurred through the base application number or even by the property identifiers or PID.
2) Get PID?
In order to get your PID of your property, you must:
- Visit the BBMP official website
- Select the ‘Citizen Services’ option, where you’d be redirected to a new page
- Now, click on ‘GIS-Enabled Property Tax Information System’
- Register your first number and mobile number for the system to locate your property on the map. On the other hand, if it fails, you can enter the previous payment Application ID
- Your new PID number will be displayed
3) Rebate On The Property Tax To Be Paid?
In case you make all your payments before May 30 of every year, you are entitled to a rebate of five percent. Also, if you choose to pay in two installments, there will be no interest charged: on the first installment if paid by May 30, and the second if paid by November 30, each year.
Note – When you make the payment, make sure the system updates it and there are no outstanding amounts shown against your account.
4) Download The BBMP Property Tax Receipt?
- Visit the BBMP Property Tax portal
- Click on ‘Downloads’
- Choose the correct option from the drop-down menu and print the receipt, Challan, or the application
Note – You will need to enter the assessment year and application ID to print your property receipt.
BBMP Property Tax News/Updates
1) BBMP Property Tax Collection
There are about 19 lakh-odd properties under the BBMP, and as per the recent update of January 28, 2021, the BBMP has recorded to have collected Rs 2,483 crores as opposed to Rs 2,467 crores in the corresponding period 2019-20. Irrespective of the Coronavirus pandemic (COVID-19) the collections were not affected.
2) Extra Charges To Be Incurred For Handling The Waste
The property owner in Bengaluru will now have to pay an additional fee for the doorstep waste pickup service, that is, Rs 200 per month. On the other hand, the commercial property owners need to pay Rs 500 per month, for the same service. This is in addition to the Solid Waste Management (SWM) cess that ranges from Rs 200 – Rs 600 as of now, and is expected to experience a 50% waive SWM cess for societies composting waste that are yet to be approved.
3) BBMP Property Tax Rebate Under the COVID-19 Pandemic
The BBMP extended the deadline in order to avail a 5% rebate on property tax, from April 30 to May 31, early in 2020, considering the Coronavirus pandemic.
4) Payment Of Double Property Tax If The Building Plans Are Violated
With effect to 2020, the cabinet has decided to double the property tax if the residential property owners violate the building plans. As per the law minister- JC Madhuswamy, this proposal was approved and the amendment to the KMC to enable the BBMP to levy this penalty.
5) Increase In The BBMP Property Tax
There are plans to hike the property tax in Bangalore by a percentage of 15%-30% for both residential and non-residential properties. The BBMP special commissioner – Basavaraju, confirmed that the tax revision was due last year (2020) but it failed to be carried due to administrative reasons.
According to the Karnataka Municipal Corporation Act (KMC), 1976, the BBMP is allowed to revise the property tax every three years, this is essential to enable the cash-strapped civic agency and meet its revenue targets.
6) Amendments to KMC Act
The KMC Act allows the BBMP officials to attach immovable properties of defaulters. This provision of the Land Revenue Act into the KMC Act, empowering the BBMP officials was made by the commissioner and the assent was given by the government.
7) Integrated Command And Control Centre (ICCC) And The Smart City Project
The ICCC and the Control Center that are a Rs 109-crore project are approved to be the brain of the smart city project. The decisions with respect to the city management and the disaster management will take place here via a common helpline number, mobile application, and web portal.
This smart city project is funded by the Bengaluru Smart City Ltd that will enable the BBMP, BMTC, BWSSB, BESCOM, City police, and Namma Metro too. The command center will focus on its mobility, solid waste management, and health.
We hope that the article above, based on the BBMP property tax, has helped fellow Bengaluru property owners with all the necessary details required on how to pay the property tax, its benefits, and reasons.