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Home Articles Pay Your Bangalore Property Tax - BBMP Property Tax

Pay Your Bangalore Property Tax - BBMP Property Tax

IndianMoney.com Research Team | Updated On Monday, December 31,2018, 12:01 PM

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Pay Your Bangalore Property Tax - BBMP Property Tax

 

 

BBMP Property Tax

What is Property Tax?

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.

What is BBMP?

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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SEE ALSO: Road Tax in Bangalore - Karnataka Road Tax

Pay Your Bangalore Property Tax Payment Online - BBMP Property Tax 

Things You Need to Know for Bangalore Property Tax

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.

BBMP Property Tax paid Forms

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.

SEE ALSO: How is income from a house or a property taxed?

Two Ways to Pay Bangalore Property Tax

You can pay your Property Tax offline or online as per your convenience.

Offline mode of paying Property Tax in Bangalore:

 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:

Canara Bank

HDFC Bank

Induslnd Bank

Corporation Bank

IDBI Bank

Indian Overseas Bank

Yes 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.

SEE ALSO: Buy Property in Wifes Name

Online mode of paying Property Tax in Bangalore:

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 Property Tax Receipt

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.

Procedure for Online Bangalore Property Tax Payment for the Year 2018-19

  • Log on to https://bbmptax.karnataka.gov.in/forms/forms.aspx
  • Key in your PID number or SAS number and choose your ward and property owner’s name from the list.
  • Make payment though net banking or debit/credit card.
  • You will get Tax Receipt in few hours.

Things you must know for BBMP Property Tax

  • If you are making offline payment, then note that you can pay in cash only up to Rs 1,000 and payments of Rs 1,000 and above must be made through debit/credit card or DD.
  • You can pay tax either for full year or six months at one shot.
  • Late payments have penalties of 2% a month.
  • If you previously had a house and demolished it recently, then you still need to pay tax on the plot.
  • Property Tax on a residential building differs based on the house occupancy by the owner.

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.

1. Property Tax Calculation

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.

2. BBMP Property Tax Calculation

  • Estimate built-up area and square foot area of the property. Do note the depreciation rate applicable.
  • You then multiply the square foot area of the property with the built-up area of the property. Multiply by 10 months.
  • Reduce depreciation from the value you get in the previous step to arrive at total annual value of property.
  • You multiply the total annual value of the property by 20% to calculate the property tax.
  • Applicable cess is 24% of property tax
  • Property tax + cess = Actual tax payable.

Property Tax (T) = (X-Y)*20%

X= L+M+N

Y= X*H/100

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.

3. Points to remember when calculating property tax

  • You enjoy a 5% rebate on paying property tax before 30th May each year.
  • If you don’t pay property tax in time, there’s a 2% a month penalty. This would be on the net payable amount.
  • You can pay Bangalore property tax in a couple of installments. There’s no penalty/interest if you pay the first installment by May 30th and the second installment by November 30th.
  • You can make payments through cheque, DD or using credit/debit cards.

4. How to pay property tax in Bangalore?

  • Pay property tax online using internet banking, credit or debit card on the BBMP website.

  • You click on the BBMP Property Tax Calculator to calculate taxes.
  • You return to the homepage and select the Property Tax Filing and Payment Link.
  • You then enter the PID Number called Property Identification Number, which is a unique number that has been generated by the BBMP, just to identify your property.
  • You can get this from the previous year’s receipts. First time payers get this from BBMP revenue office.
  • You will find property details generated.
  • If property details are not displayed, select first owners name on BBMP tax form.
  • You enter age, profession, email ID and select area/ward number.
  • You will have to select the respective zone, property type and property details.
  • Check property tax calculations displayed and make the payment.
  • You also have the option of printing BBMP property tax receipt.

5. How to pay BBMP Property Tax Online?

  • You have to enter the BBMP tax site and enter the SAS application number.
  • Click on “Fetch” and if application number is valid, property details are fetched and displayed.
  • If details are accurate, click on “Proceed”.
  • What if there are changes to property like built-up area? You select the respective Checkbox before clicking on the Proceed Button.
  • You will find the Form V displayed and if there are no changes, Form IV would be displayed.
  • You have to fill up the Form V and if there’s excess property tax already paid (there’s property tax due to you), excess tax paid will be adjusted against property tax which is due this year.

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