BBMP Property Tax

What is property tax?

For individuals who own property such as homes or offices, be it residential or commercial, it is mandatory for them to pay property tax on an annual basis to their local governing body. The funds collected from the bbmp property tax are used for the development of the locality such as parks, roads, infrastructure, etc.

This applies the same for the residents of Bangalore, wherein the governing body Bruhat Bengaluru Mahanagar Palika (BBMP) is responsible for collecting taxes from property owners on an annual basis. Property tax in Bengaluru is calculated on the basis of the Unit Area Value and the payment for it is very simple. The due date for the payment is 30th April 2021.

How is Bruhat Bengaluru Mahanagar Palika (BBMP) property tax calculated?

There are three ways to calculate your BBMP property tax under Bruhat Bengaluru Mahanagar Palika (BBMP):

  1. Unit Area System:

Under this system, the property tax is chargeable on the basis of the carpet area of the property. Properties value is multiplied by its carpet value to determine the property tax applicable. 

  1. Annual Rental System:

Under this system, the property tax is chargeable on the basis of the fixed gross yearly rent. This is decide by the Bruhat Bengaluru Mahanagar Palika (BBMP), and the difference is levied on the property’s anticipate value. 

  1. Capital Value System:

Under this system, the properties market value, is used to estimate the applicable tax. The stamp duty department of that specific area decided the fixed market value. 

To understand the formula, here are a few specifics that you must remember:

A = Tenanted Area of Property

B = Self Occupied Area of Property

C = Vehicle parking Area of Property 

D = Depreciating Value of the Property

I = Gross Unit Area Value

G = Gross Unit Area Value (A + B + C) 

Property Tax = (G-I) *20% + CESS (24% of the property tax)

How to pay your property tax?

Here is how you can pay your property tax online:

  • Visit the Bruhat Bengaluru Mahanagar Palika (BBMP) official website.
  • Your property will be assigned with a Property Identification Number, enter that number, and click on submit. This will provide you with the details of the property for which you want to pay your taxes.
  • Verify your details and proceed to Form IV
  • If any details such as property usage, built-up area, or occupancy details need to be changed then you may make those changes here and then proceed to the next form
  • Under Form V verify that all your pre-filled data is correct and then proceed to the next page to make your payment. 
  • Select your method of payment such as debit card, credit card, or net banking, and continue to make your payment. When your payment done your receipt number can generate within 24 hours. You may download the same for future reference.

Here are a few things you should make note of about the BBMP property tax:

  • Property tax computation starts from April of the current year and up to March of the next year and the tax is to be paid within 30th April of that financial year.
  • There is a 5% rebate if the tax is pay in one installment within the due date.
  • Delayed payment attracts an annual interest of 24% per annum or 2% per month.
  • Although property tax can be paid in two installments without attracting additional interest.

In case you don’t have access to pay property tax online, you can even use the offline option to pay your BBMP house tax:

  1. Procure the property tax form 
  2. Fill up the form accurately with relevant information 
  3. Upon filling the form you can submit these forms at your nearest Bangalore One center or you could even submit them at a BBMP authorized bank 
  4. In case your property tax amounts to Rs. 1000/- you can pay it in cash and in other cases, you use a debit card, credit card, net banking, or even by demand draft made in favor of the commissioner of the Bruhat Bengaluru Mahanagar Palika.

Also Read: Is Refinancing a Home Loan Good for People During Covid-19 Crisis?

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