Bruhat Bengaluru Mahanagara Palike (BBMP) Property Tax

Taxes serve as one of the primary sources of revenue for the Government, enabling them to develop and maintain essential infrastructure and amenities like construction and maintenance of roads and parks, cleanliness of the locality, efficient drainage, etc.

There are certain taxes that are levied by the Government of India, like Goods and Services tax (GST), Income Tax, etc. Similarly, there are certain other taxes that are levied by the different states of the country. Property Tax is one such tax that is levied by the State Government and is payable by the residents of that state through a local body like the state municipality. This tax acts as revenue from real estate like vacant land, residential apartments, commercial complexes, warehouses and shops, owned by a resident.

As this tax is paid indirectly paid to the State Government through the relevant municipality, it has an effect on the method of computation and mode of payment. Therefore, if you own property in Bangalore, it is essential for you to have a thorough knowledge about these minute details, so that you are well aware of the Property Tax that you have to pay to your State Government.

The 6 forms for paying property taxes in Bangalore are:

Form I: Form I is applicable when the owner of the property has its PID (Property Identification Number), a dynamic identification number allocated to his/her property that comprises of detailed information related to the plot, road and ward of the property.

Form II: Form II is relevant when the property owner does not possess the PID but has a Katha number, the unique number of the Katha certificate issued for his/her property and includes all the essential details of the concerned property.

Form III: This form has to be submitted by a property owner who neither has the PID or the Khata number.

Form IV: Form IV is a white form that has to be submitted when there are no changes involved in the property information related to increase or decrease in the property size, or any alterations in statues.

Form V: Form V is a blue form that is required by owners whose property has undergone some changes like construction of another floor, demolition of the property, transition of the property from residential to non-residential or vice-versa, transition of its status from under-construction to constructed, etc.

Form VI: This is the form that is relevant for property owners who are eligible for tax exemptions from property tax. The service charge that has to be paid can be done through this form.

Let’s take a look at certain things you need to consider while calculating your property tax:

• Built-up area should not include cars parked in verandas and open car parks. Areas occupied by cars parked in verandas and open car parks have to be deducted from the built-up area.

• If you own a residential property that is neither self-occupied nor is rented out to the tenant, you can declare it as self-occupied and calculate the tax accordingly.

• If the construction of your property gets completed after 1st October, the payable tax will be for half of the assessment year. In case of completion of construction before 1st October, the entire annual tax has to be paid.

• Even if you have demolished a construction, you have to pay property tax for the vacant land.

• The newly introduced cess for solid waste management will be applicable if there is a construction on your property and not if it is a vacant land.

• Late payments are liable to an added interest of 2% per month over and above the annual interest rate of 24%.

• The property tax can either be paid in its entirety once a year or it can be paid in two instalments payable half-yearly.

• If you opt for paying the tax in 2 instalments, the relevant forms will have to be submitted twice.

• Taxes amounting to up to INR 1,000 can be paid by cash. Taxes exceeding this amount will have to be paid through online platforms, credit/debit cards or demand drafts in favour of ‘Commissioner, Bruhat Bangalore Mahanagara Palike’.

BBMP generates a tax receipt as a token of acknowledgement for the property tax payment. This receipt mentions essential details about the payment like assessment year, application number, payment location, the amount due, the applicable cess, the final tax payable, advances paid (if any), etc.

If the payment due is made through cash, credit/debit card or demand draft, the tax receipt is issued immediately. However, for online payments, a soft copy of the receipt will be generated, which can be saved, so that a printout can be taken for future reference.