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BBMP Property Tax
Taxes are the main source of revenue for maintaining and funding the major public utilities in the country. As we know, taxes are imposed on various incomes and services like income from house property, income from the sale of goods, and income from providing services to clients. The property tax is levied on the owner of the property.
The levy of property tax is delegated to the municipal corporations of each state. The municipal corporations are responsible for maintaining proper roads, drainage systems and cleanliness in the public areas like parks etc. The state government has delegated the levy of a tax to municipal corporations and thus the mode of payment, and rates at which it is levied in different cities differ from place to place. Owning a property has its own nuances and understanding the payment of tax is another complicated task for the citizens. The municipal corporations have made the payment and calculation of taxes online which has brought ease to the entire process.The owners of properties in Bangalore have to pay property tax to the Bruhat Bengaluru Mahanagara Palike. The municipal corporations utilize these funds to maintain all civic facilities in the city. The property tax is calculated on the basis of unit area value (UAV). The UAV system of calculating the tax is based on expected returns from the property, the usage of the property and the location.
Calculation of Property Tax
The formula for calculating property tax is as below
Property Tax (K) = (G - I) * 20% + cess (24% property tax)
G = G is the gross unit area valued by adding X, Y, Z and I
Where X is the property occupied by tenants * per square foot rate * 10 months
Y is the self-occupied area of property * per square foot rate * 10 months
Z is the vehicle parking area of property * per square foot rate * 10 months
H is the percentage rate of depreciation for the property.
Therefore, the calculated property tax is equal to 20% area of the property which is multiplied by the per square foot rate of BBMP reduced by depreciation and allowed 24% cess on property tax.
Payment of BBMP Property Tax
Online Payment
1. The taxpayer can visit the BBMP official website for payment of property tax online.
2. The taxpayer has to enter the SAS application number or the PID which will be available in the last receipt. These will help the taxpayer to pay taxes.
3. If there are any changes in the property usage, its built-up area or occupancy, the appropriate tab has to be selected which will direct the taxpayer to Form V
4. The taxpayer has to ensure that the details that are pre-filled in the application form are correct and no changes have been made regarding occupancy, property details etc.
5. After choosing the option to pay online, the page will be redirected to pay the tax via credit card, debit card or net banking. The successful payment of tax will generate a receipt for the taxpayer. The time taken for the generation of the receipt is 24 hours. The assessee can download and print the receipt from the website after the stipulated time.
6. If any problems arise during this process, the assessee can resume the payment process by entering the SAS application number.
7. In case of any grievances, the assessee can mail at bbmp@gmail.com
Offline Payment
1. The application form can be availed and the taxpayer can fill the form and pay the tax either via a card or a demand draft.
2. The demand draft should be drawn in favor of the 'Assistant Revenue Officer'.
3. The following banks have been authorized to collect property tax for the BBMP
- Canara Bank
- Axis Bank
- HDFC Bank
- ICICI Bank
- IDBI
- Corporation Bank
- Indian Overseas Bank
- YES Bank
- Kotak Mahindra
- Indian Bank
- SBI
- Maharashtra Bank
- IndusInd Bank
Forms for Property Tax
| Form | Applicability | Remarks |
| Form I | Property with a property identification number which can be found on the last receipt | The form is white and these are erstwhile properties |
| Form II | Property without the property identification number and only the khata number | These are properties which include villages recently added to BBMP and properties which were a part of TMC and CMC |
| Form III | Property without PID or khata number | These are unsanctioned properties and the form color is green |
| Form IV | When there is no change in property details | Form is in white color |
| Form V | When there are changes in property status and it changes to constructed from not constructed | The form is blue in color |
| Form VI | When a property is exempt from payment of property tax | - |
Due Date and Rebate of Property Tax
The property tax has to be paid by 30th April each year. A rebate of 5% is allowed if the tax is paid before the due date and in a single installment. If the tax is paid in two installments, the rebate cannot be availed. The penalty for non-payment of tax is 2% every month.
Properties that Attract Tax
- Residential houses
- Factory buildings
- Office buildings
- Godowns
- Shops
- Flats
The residential houses will attract property tax if they are self-occupied or rented out.
Property Tax Rates
| Zone | If Rented | Self-occupied |
|---|---|---|
| A | Rs. 5 | Rs. 2.5 |
| B | Rs. 4 | Rs. 2 |
| C | Rs. 3.60 | Rs. 1.8 |
| D | Rs. 2.4 | Rs. 1.2 |
| E | Nil | Nil |
BBMP Tax Application Number
- The taxpayer should visit the official website of BBMP
- The new GIS based PID section needs to be selected
- Enter the older application number and search your property
- Check the personal and property details on the page
- The taxpayer can save and download this information for future reference
- The changes can be made by visiting the ward or the branch of BBMP
- The application number should be saved by the taxpayer
Zones Under BBMP
The property tax also depends upon the zone in which the property is located. The zones are further classified into residential and non-residential areas.
The list of BBMP tax zones is as below
- East
- West
- South
- Yelahanka
- Mahadevpura
- Bommanahalli
- Rajrajeshwari Nagar
- Dasarahalli
Tax Benefits
The tax deductions on GAV can be availed on computed income under house property in an assessment year fulfilling the conditions
- GAV of the property is not zero and hence it is a self-occupied property
- The owner of the property has paid tax
Important Points to Remember
- If the taxpayer owns a residential property that is neither self-occupied or rented, the taxpayer can declare it as a self -occupied property.
- If the construction of the property has been finished after 1st October in any year, the property tax is to be paid only for half of the year
- If the demolition of the property has been done, the assessee has to pay tax on the vacant land.
- The built-up areas should not include balconies, verandas or parking areas.
- The tax has to be paid twice a year and the forms have to be submitted along with the payment of the tax.
FAQs
1. What is BBMP property tax?
BBMP property tax is a tax which has to be paid by all the citizens residing in the city of Bengaluru to the municipal corporation. The BBMP tax is a mandatory tax which is collected by the state government for maintaining the civic amenities and public places.
2. What is A Khata and B Khata?
The document that confirms that the taxpayer has paid the dues against their properties is called A Khata document.B Khata documents refer to a list of illegal properties that are maintained by BBMP.
3. What does BBMP stand for?
BBMP stands for Bruhat Bengaluru Mahanagara Palike.