BBMP Property Tax: Taxes are one amongst the various major sources of income for the Government, which supports them in funding various facilities to be presented to the general public of any country in the world.
These taxes are levied on several things such as income tax on wages, Goods and Commodities Tax or Service Tax on goods or such aids, etc. Certain taxes are administered centrally, whereas several other taxes are state-specific, and those states that levy these taxes, receive revenues to support the State budget.
Property tax, especially BBMP Property Tax is one such mention worthy tax levied by the State Government by the local body on real estate, including uninhabited land, yearly. This tax is foisted on the owner of the property or plot.
Bangalore, thus, has drawn plenty of people from across India. Most people move to renowned Silicon Valley for business and find themselves acquiring their own homes. The BBMP charges inheritance tax to those who obtain real estate in the city.
Hence, this article has been written exclusively to clear queries of our dear readers about various topics related to the BBMP Property Tax, such as, BBMP Property Tax payment, BBMP Property Tax online payment 2020-21, and Property Tax Bengaluru Calculator.
BBMP – Bruhat Bengaluru Mahanagara Palike Property Tax
- Endeavours of the BBMP Property Tax
- What is meant by Property Tax?
- How does one calculate Property Tax?
- About the Forms for BBMP Property Tax
- About the Payment of Property Tax
- Banks associated with the collection of BBMP
- Applicability and Objectives of the BBMP Property Tax system
- Types of Properties on which BBMP Property Tax is levied
- Important instructions for all Taxpayers
- About Revised Return System
- How to obtain a payment receipt for tax clearance?
- Payment Due date for this annum under BBMP Property Tax
- About Late Payment penalty
Endeavours of the BBMP Property Tax
- The government introduced the BBMP Property Tax System; hence, it entails some major prospects and endeavours. Any such individual who owns an asset in Bengaluru (especially property or estate) must pay the property tax each year to the Bruhat Bengaluru Mahanagara Palike, which is the full form of BBMP.
- The calculation of this specified property tax is based solely on the Unit Area Value or the UAV. The process to clear the property tax is manageable, and individuals can opt for online or offline methods for eased convenience.
- If you are the property owner or estate in Bengaluru, you must pay property tax to the local governing body or the Bruhat Bengaluru Mahanagara Palike. You must pay property tax annually, by any mode, online or offline.
- BBMP uses the Unit Area Volume to calculate property taxes, making the process professional and free of flaws. The property’s location, the nature of its use, and its expected returns will altogether circumscribe its UAV.
- The State Government imposes property tax via a local body, which is true for the BBMP as well.
- Property owners are demanded to pay tax on real estate even if it endures a vacancy in unoccupancy. The tax is employed to fund the preservation of public parks, sewerage, roads, and other infrastructure in the state of Bangalore.
What is meant by Property Tax?
A property tax levy is authorized to various districts within the state to guarantee efficient and continuous maintenance of community amenities in several localities and the preservation of local infrastructure such as local roads, sewerage, sanitation, public squares, and so on.
The State Government governs property tax. For BBMP, it is no exception, and further authorization to various municipalities ends in differentiation in its payment’s custom, estimate, a form of levy of payment, and manner.
Property for property tax schemes includes independent residential and commercial buildings, flats and apartments, stores, storehouses, uninhabited land, etc. Hence, owning such property has its difficulties, and understanding the refinements of property tax is essential for an individual in financing and tax planning as well.
Property tax levied by Bengaluru municipality and the tax benefits of it, additional information, and more is furnished to help people understand and plan their Bangalore property ownership and tax payment in a more advantageous way.
How does one calculate Property Tax?
Property tax calculation formula:
(K) = (G – I) * 20% + Cess (24% of the property tax)
Here,
- ‘G’ stands for gross unit area value succeeded by X + Y + Z and I = G * H/100.
- ‘X’ stands for the inhabited area of property x Per sq. feet rate of property x 10 months.
- ‘Y’ stands for the self-occupied area of said property x Per sq. feet rate of property x 10 months.
- ‘Z’ stands for transportation parking area x Per sq. feet rate of vehicle parking area x 10 months.
- ‘H’ stands or, percentage of reduction rate, which depends upon the property’s age.
Therefore, property tax is equal to 20% of the whole area of the property (tenanted, self-occupied, and transportation parking area) multiplied by per sq. feet rate solidified by BBMP for particular kinds of usage of property for ten months subdued by reduction allowed by BBMP plus 24% cess on property tax.
Note: You can claim depreciation once in the block period, and not more than that.
About the Forms for BBMP Property Tax
| Type of Form | Specifications about Forms for BBMP | Form Colour and Additional Remarks |
| Form I | Property with PID or Property Identification Number (your unique ID assigned to every property, which is a mixture of your ward number, street number, and area number) and this can be seen on the last property tax payment receipt. | These are properties in the former BBMP area, and the form is printed in white colour. |
| Form II | Properties without PID or Property Identification Number but only with Khata number (which is the number of the khata certificate that is assigned for all properties and contains all the relevant details to that property).
These are properties in former CMC or the City Municipal Corporation and TMC or the Town Municipal Corporation, additionally with a hundred and ten villages that have been recently added to BBMP. |
The form is printed in pink colour.
|
| Form III | A property without PID or Property Identification Number or a Khata number. | These are unlawful or unauthorised properties that are built without the sanction of local planning authorities. This form is printed in green colour. |
| Form IV | If there is no change in the property particulars such as the extent of built-up area, usage or its occupancy, etc. | Forms are printed in white colour.
|
| Form V | When there is a difference in the property, including when the property changes from under-construction to later, constructed. | The form is printed in blue colour. |
| Form VI | For the payment of service cost when the property is excluded from payment of property tax. |
About the Payment of Property Tax
Online electronic mode
- Go to the official BBMP property tax portal
- Enter earlier SAS Application Number or PID (both of these options are available on the last receipt) and click on ‘Fetch’, which will present property owner details.
- Click on the ‘proceed’ option if the details displayed are accurate and no changes are required in the property. This will take you to form IV.
- If you feel, there is are any changes in the property, such as property use, built-up expanse, or ownership, check the box which is provided on the page and then click on the ‘proceed,’ option. This will take you to form V.
- Kindly ensure all details pre-filled in the form are displayed including tax computation and make sure they are correct and if not, modify relevant details in case of changes and proceed to pay either at once or in instalments and via online or via challan option.
- Choosing the online payment option will redirect you to the payment page through which you can choose to pay by net banking or credit or debit card and complete your payment. Once the payment is completed, the website will generate a receipt number, and it will take 24 hours for E-receipt to be prepared in the portal.
- Receipts can be printed or downloaded as you wish.
- If you, by any chance, face any problem while paying the fee online and your payment is incomplete, you can continue the payment using the current SAS Application number.
- Further, you can contact the BBMP directly, either at contactus@bbmp@gmail.com or raise a grievance for any problems you have faced while using their online mode.
Offline manual mode
- Fill in all the application forms carefully without any mistakes and take them to either of the following:
- Bangalore 1 center
- Assistant Revenue Officer office
- After reaching pay either by card or a Demand Draft.
Banks associated with the collection of BBMP
The following banks by the government have been authorised to collect the BBMP Property Tax:
- Axis Bank
- Canara Bank
- ICICI Bank
- HDFC Bank
You can at any time access links to bank branches of authorised banks through the site’s options. Also additionally, it is important to note that BBMP has tied up with the banks as stated below for property tax payment.
- IDBI
- Corporation Bank
- Indian Overseas Bank
- YES Bank
- Kotak Mahindra
- Indian Bank
- SBI
- Maharashtra Bank
- InduSind Bank
If you have chosen challan payment while filling the form online, you can pay the tax at any of the above centers or banks.
Applicability and Objectives of the BBMP Property Tax system
Owners of properties in Bengaluru are subjected to paying property tax to the Bengaluru Municipality body, every year which is called the Bruhat Bengaluru Mahanagara Palike or, in short- BBMP. The municipal body utilises these stocks to provide civic amenities in Bengaluru amongst citizens for improvement of infrastructure.
The BBMP follows the UAV or the Unit Area Value system for determining the amount of property tax, and is based on proposed returns from the property, depending upon its spot and type of usage of the property.
The jurisdiction of the BBMP is classified into six value zones, based on the administration value published by the Department of Stamps and Registration or the DSR. The property tax rate will always differ as per the region in which the property is located.
Property tax levied can be subtracted from Gross Annual Value or the GAV of the property while estimating income under house property in the FY in which it is handled only if the following conditions are satisfied:
- GAV of the said property is not NIL (self-occupied house property)
The owner has cleared the previous amount of property tax.
Types of Properties on which BBMP Property Tax is levied
Property tax in Bangalore is imposed on the types of properties as mentioned below:
- Private or residential houses, whether they are inhabited by the owner or put out for rent.
- Factory constructions
- Office buildings
- Storage Places
- Go-downs
- Stores
- Flats or Apartments
According to the Department of Stamps and Registration’s leadership value publication, BBMP’s jurisdiction is divided into six value zones. The rate at which property tax is imposed will vary based on the property’s zone.
Important instructions for all Taxpayers
- If the property tax returns for the preceding year have not been registered, property tax for the current year shall be supplemented by the return and dues, if any, for the preceding years.
- You cannot claim two additional depreciations for the year 2017-18, and you can claim 2018-19 and 2019-2020 as depreciation once in a block period, that is, from 2016-17 to 2019-20
- If a revised return for any year has been filed, then the return for the current year shall be based on the revised return registered.
- In case of any tax was paid in advance by taxpayers and after adjusting for the tax for the preceding years, if there is still a surplus, it will be paid back or refunded through Cheque after due confirmation.
- If property tax is cleared in two instalments for the current year, the same form is practiced for the second instalment.
- You could avail 5% rebate on total property tax to be paid; if you are paying the full amount in one instalment.
- If you make payment for previous years (arrears payment), you shall make amends after generating a challan for each prior year.
- You can make the payment for your property tax if you have already paid the property tax at least once by employing your SAS BASE APPLICATION NUMBER or your unique PID NUMBER.
- If it is your first time paying the property tax for BBMP, kindly wait for a while.
- If you are a defaulter, the system automatically determines the interest for the defaulted time at the rate of 2% every month.
- If you are meeting your estimate through DD or CASH, a receipt as per your convenience can be generated instantly.
- For the payment through cheques, however, a receipt can be produced only after realising the actual cheques amount.
About Revised Return System
The official instructions furnished for Revised
Returns are:
- All property tax payments of 2021-2022 are suitable to file revised property tax returns.
- The revised property tax returns for the years 2021-2022 can be filed till 31st March of 2022.
- No downward revision of property taxes is allowed.
- The differential amount if any can be cleared online or via offline mode through challans at your designated bank branches.
- Advertisement Hoardings or Telecommunication Towers, if any, should be reported mandatorily.
How to obtain a payment receipt for tax clearance?
You can get your payment receipt by following the steps as listed below:
-
- Visit the official website.
- Click on the option ‘downloads’ and select the ‘receipt printout’ option.
- Next, select the year or assessment and enter your application number.
- Click on the ‘Submit’. button
- The property tax receipt will shortly be downloaded in pdf format on your device.
Payment Due date for this annum under BBMP Property Tax
BBMP Property Tax has furnished that the rebate period BBMP property tax for 2021 to 2022 assessment year is extended till the 30th of June 2021 only for Full-year payments of the taxes.
For Online payment mode, you can request to pay the taxes well in advance to avoid any payment failures due or encounter any technical issues at the latest hour.
About Late Payment penalty
A penalty is indeed levied in the case of late payments of property tax by taxpayers. Currently, 2% of the amount that you must clear will be charged per month.