BBMP Property Tax: How to Pay For FY 2023–24

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Introduction

Taxation is one of the main sources of revenue for the government. It helps in funding various facilities to be provided to the common people of the country. The Government levies taxes on various things, like income tax on income, GST on goods or services, etc.

BBMP Property Tax: How to Pay for FY 2023–24

Table of Contents

Some taxes are administered centrally. Some other taxes are state-specific, and different states receive revenues for the purpose of funding the state budget. Property tax is a tax levied by the state government on real estate by the local body, including vacant land, on an annual basis.

Property tax must be paid on an annual basis. The Unit Area Volume (UAV) system is used by Brihat Bangalore Mahanagara Palike (BBMP) to calculate property tax. The location of the asset, the nature of its use, and the expected returns from it will determine the UAV.

What is Property Tax?

Funds are needed to fund maintenance of local roads, drainage, area cleanliness, public parks, etc. The levy of property tax on the various municipalities of the state provides funds to the government to ensure the efficient and smooth running of civic facilities in different areas. Property tax is administered by the state.

The government and subsequent delegations to different municipalities have differences in levy, calculation, method, and payment method. Property included for property tax purposes generally includes independent buildings (residential and commercial), flats and apartments, shops, godowns, vacant land, etc.

So, owning a property has its own set of complications. It is also important to understand the nuances of property tax. Also, for someone in financial and tax planning. Better understanding of Bangalore property tax payments. Property Tax levied by Bangalore Municipality makes it easy to plan for property tax payment.

BBMP Property Tax Payment

Property owners in Bangalore have to pay property tax every year. The Bangalore Municipality collects property tax for the corporation known as Brihat Bangalore Mahanagara Palike (BBMP). The municipal body uses these funds to provide civic amenities in Bangalore.

The BBMP follows the Unit Area Value (UAV) system to calculate the property tax amount. The UAV is based on the expected return from the asset. It varies depending on its location and the nature of the property’s use.

Property tax payment to BBMP must be made every year. The tax period starts in April and ends in March of the following year. For example, if you owe property tax for FY 2023-24, you should understand that it can be filed by 31 March 2024.

Property Tax Rate in Bangalore

In Bangalore, the property tax rate is different for rented and self-occupied property. The property tax rates for the six zones are as follows:

ZoneTenanted (per sq. ft.)Self-occupied (per sq. ft.)
ARs.5Rs.2.50
BRs.4Rs.2
CRs.3.60Rs.1.80
DRs.3.20Rs.1.60
ERs.2.40Rs.1.20
FRs.2Rs.1

BBMP Property Tax Payment Procedure

  • The property tax period starts in April of one year and ends in March of the next year. Tax must be paid by March 31st of the following financial year (FY). For example, for FY 21–22, property tax must be paid by March 2022.
  • BBMP also gives a 5% concession on property tax paid in one installment within the due date prescribed by BBMP.
  • Late payment of property tax attracts interest at 2% per month or 24% per year
  • Property tax can also be paid in two installments without any interest or rebate

Computation of BBMP Property Tax

Property tax (K) = (G – I) *20% + Cess (24% of property tax)
  • G = Gross unit area value arrived by X, Y, and Z, and I = G*H/100
  • 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, which depends upon the age of the property

The property tax is multiplied by the rate per square feet fixed by the BBMP for each type of use of the reduced property for 10 months. The total area of the property (tenant, self-occupied, and vehicular parking area) is equal to 20%. 24% cess on property tax through depreciation allowed by BBMP.

Property Tax Due Date & Rebate

Paying your property tax in one installment before the BBMP due date entitles you to a 5% concession. However, in case of a delay in payment, a monthly interest rate of 2% will be applicable. You can also pay in two installments to avoid interest. But without a discount, make sure to complete it by June 30.

How to Pay BBMP Property Tax

BBMP can pay property tax manually or online. Now let’s know the payment method.

Online method

  • Go to Brihat Bangalore Mahanagara Palike Property Tax Portal
  • Enter previous SAS application number or PID (both available in last receipt) and click on ‘Retrieve’, which will display property owner details.
  • If the displayed details are correct and there are no changes in the property, click on ‘Proceed’. This will take you to Form IV
  • If there are any changes in the property, like property usage, built-up area, or occupancy, check the box provided on the page and then click on ‘Proceed’.
  • Check that the pre-filled details in the displayed form, including the tax calculation, are correct, or modify the relevant details in case of change, and proceed to pay in full, in installments and online, or through a challan.
  • Selecting the online payment option will take you to the payment page, where you will have to pay through net banking or a credit/debit card. Once the payment is completed, a receipt number will be generated, and it will take 24 hours for the e-receipt to be available on the portal.
  • Further, if you face any issues while using the online mode, you can complain to BBMP at dcrev@bbmp.gov.in.

Manual Method

  • Go to Bangalore One Center or Assistant Revenue Office to get the applicable property tax application form
  • Fill all the applicable forms and submit them to the Bangalore One Center or Assistant Revenue Officer offices.
  • Pay tax through card or demand draft.

Banks authorized to collect taxes.

  • Canara Bank
  • Axis Bank
  • HDFC Bank
  • ICICI Bank

BBMP has connected the following banks for property tax payments:

  • IDBI
  • Indian Bank
  • Indian Overseas Bank
  • YES Bank
  • Kotak Mahindra
  • Corporation Bank
  • SBI
  • Maharashtra Bank
  • IndusInd Bank

Benefits of Tax

The property tax paid is deducted from the gross annual value (GAV) of the property while computing the income under house property in the FY we pay:

  • GAV of the property is NIL (self occupied house property)
  • Property tax is paid by the owner

Conclusion

As a property owner or investor, a clear understanding of property taxes is essential. This tax is crucial in generating revenue to fund the necessary infrastructure development of the city. Mail to get complete details regarding property tax and ask your queries. For more information, visit openplot.

Also read: Property Tax Call Center: PMC Has Launched a Special Call Center

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