Property Tax is a tax levied on Real Estate by a governing authority. The governing authority can be Central Government or State Government or Local Municipality. Property Tax is one of the major income for the Government. The income from tax is used for governing and infrastructure spends.
Bruhat Bengaluru Mahanagara Palike abbreviated as BBMP, is the administrative body of Greater Bangalore Metropolitan Area. BBMP is the third level governing body in Bangalore with first two being the Central and State Governments respectively. BBMP is the fourth largest Municipal Corporation in India. Its boundaries have expanded exponentially over the last two decades. BBMP is run by a council consisting of Corporators elected by each ward.
Reside in Bangalore? Rains are not allowing you to pay property tax? There’s no need to worry. Just pay property tax Online. You must be well familiar with Bruhat Bengaluru Mahanagara Palike famously known as BBMP. BBMP is the administrative body responsible for the civic amenities and infrastructural assets of the Greater Bangalore Metropolitan Area. Do note that BBMP no longer accepts physical payments at the BBMP office.
Bangalore property tax is a simple tax collected by Municipal Authorities from property owners. Bangalore property tax is collected to give you basic civic facilities like roads, parks, sewers, street lighting, water supply and so on. If you own a property in Bangalore, you have to pay Bangalore property tax to BBMP.
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BBMP is responsible for providing civic amenities in Bangalore city. As BBMP is responsible for civic amenities, the Property Tax is levied and collected by BBMP in Bangalore. Property Tax is levied on all residential and commercial buildings, flats and apartments, showrooms, godowns and plots in Bangalore.
BBMP follows Unit Area Value, UAV, for calculating the Property Tax. UAV of a property depends on location and nature of usage. BBMP is divided into six zones with different values and this is based on the guidance values published by the Department of Stamps and Registration. The Property Tax is calculated as the multiplication product of property’s area in square feet and current Property Tax rate value.
Properties in Bangalore are divided into two categories for tax collection purpose. Full legal properties are classified under ‘A’ Khata and semi or completely illegal properties are classified under ‘B’ Khata. Here, ‘khata’ stands for account. ‘A’ khata properties are those properties that are fully legal and are as per the specifications mentioned by the governing body. ‘B’ khata properties are those properties that are not as per the standard specifications. ‘B’ khata not only stands for the issues related to the property’s legality, it also stands for the deviations from the standard specifications. Property Taxes are levied on both ‘A’ and ‘B’ khata properties.
Here is a good example of ‘B’ khata property; you buy a plot having no legal disputes with ‘A’ khata certificate, and you plan to construct a house. Before you start the construction, you need to get an approval of your house construction plan from the BBMP and you must adhere to it at all times.
But during the construction, you deviate from the plan by constructing an extra floor or a room. After the construction is completed, BBMP would verify your construction and issue a clearance certificate without which you cannot get electricity and water supply connection. If BBMP finds that you have deviated from the approved plan, then they will issue ‘B’ khata certificate, even though your plot is ‘A’ khata.
There are different BBMP Property detail Tax Forms depending on the property as mentioned below:
1) Form I: Form I is applicable to those properties that have Property Identification Number, PID. PID contains the information of plot, road and ward number.
2) Form II: Form II is applicable if the property doesn’t have PID but has khata number.
3) Form III: Form III is applicable if the property has neither PID nor khata number.
4) Form IV: Form IV is also called white form and is applicable if there are no changes vis-a-vis property size.
5) Form V: Form V is also called blue form and is applicable when there are changes in the property’s size. Form V is needed when the status of the property changes from under construction to constructed or from constructed to demolished.
6) Form VI: This form is applicable when the owners of the properties are eligible for tax exemptions.
You can pay your Property Tax offline or online as per your convenience.
You need to visit either the BangaloreOne center or Assistant Revenue Officer’s office. You need to fill the application form manually and make offline payment either by cash or DD drawn in the favor of ‘Commissioner, Bruhat Bengaluru Mahanagara Palike’, payable at Bengaluru. You can also make the payment at below mentioned banks’ branches:
Indian Overseas Bank
Kotak Mahindra Bank
ING Vysya Bank
If the tax payable is less than Rs 1,000 then you can pay by cash, if not then through debit/credit card or DD.
Pay Your Bangalore Property Tax online by logging on to https://bbmptax.karnataka.gov.in , enter PID number and make the payment. Paying online is hassle free and simple. You can pay online by net banking, debit and credit cards.
BBMP issues tax receipt as an acknowledgement for receiving the tax from the property owners. For offline mode of payment, you will get the receipt immediately. This Tax Receipt contains the property details, assessment year, PID number and other property related information. For online mode of payment, a soft copy would be made available after few hours of payment.
Note: BBMP offered the manual process where you had to fill up BBMP Property Tax Form and submit with a cheque or DD to pay property tax. You can also opt for the convenient online method and fill BBMP properly tax online, to pay Bangalore Property Tax.
Before paying property tax, do look at ways different States calculate property tax. Chennai City Municipal Corporation follows the concept of reasonable letting value, RLV, to get annual rental value and half yearly tax on properties within Chennai City Limits. Monthly rental value is fixed based on a certain reference like basic rate per square feet for Residential/Non Residential properties. This is done separately.
If you own a residential property in New Delhi, you must pay property tax to the Municipal Corporation of Delhi. Based on the colony where property is located you pay property tax to the South Delhi Municipal Corporation (SDMC), the North Delhi Municipal Corporation (NDMC) or the East Delhi Municipal Corporation (EDMC).
The Municipal Corporation of Delhi uses the ‘Unit Area System’ popularly called UAS to calculate property tax. Check this formula:
Property Tax = Annual Value * Rate of Tax.
Annual value = Unit area value per sq metre x Unit area of property x Age factor x Use factor x Structure factor x Occupancy factor.
Unit area of property: This is built up area and not carpet area in square meters.
Unit area value: This is assigned per square meter of built-up area.
Age factor: Older properties are taxed lower than new properties. Age factor ranges from 0.5 to 1.
Use factor: Commercial properties are taxed higher than residential properties where residential properties have the use factor of 1.
Structure factor: Low value constructions have lower tax compared to RCC constructions.
Occupancy factor: Self-occupied properties have lower tax than rented out properties.
Rate of tax: Properties are categorized from A to H and the Municipal Corporation of Delhi changes taxes each year.
Property Tax (T) = (X-Y)*20%
X= Gross Unit Area Value
L= Tenanted area of property × Per square ft. rate of property × 10 Months.
M= Self-occupied area of property × Per square ft. rate of property × 10 Months.
N= Vehicle parking area × Per square ft. rate of vehicle parking area × 10 Months.
H= Percentage of depreciation rate which depends on property age. You can see it in the chart.
Y= Depreciation Amount.
Let’s understand this through an example:
You have a plot of Zone E at rate Rs 2.4 per sq ft (tenanted area) and Rs 1.2 per sq ft for self-occupied and Rs 0.6 per sq ft (car park area)
The apartment is 5 years old and depreciation rate is 6%.
L = (Tenanted area = 0) * 2.4 * 10 = 0. (We assume the house is not rented).
M= 1500 * 1.2 * 10 = 18,000. (The house area is 1500 sq ft).
N= 200 * 0.6 * 10 = 1200.
X= 0 + 18,000 + 1,200 = 19,200.
Y= X*H/100 = 19,200*6/100 = 1,152. (H= 6% from the chart)
T = (X – Y) * 20% = (19,200 – 1,152) *20% = Rs 3609.6.
Basic Property Tax = Rs 3,609.6.
You have 24% cess.
= 3609.6 + 3609.6* 24% = 3,609.6 + 866.304 = Rs 4,475.9.
Pay property tax online using internet banking, credit or debit card on the BBMP website.
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