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New Bangalore Property Tax Explained

Bangalore Property Tax

All About the New Bangalore Property Tax Structure

The Bruhat Bengaluru Mahanagara Palike [BBMP] has recently announced some changes in the city’s property tax regime. Under the new Bangalore property tax collection system, the tax will be calculated by combining the guidance value of the property and the built-up area. This is said to increase the amount of tax paid by the property owners and, in turn, push up the already rising apartment rentals in the city. All the properties including flats, have been classified into tenanted, self-occupied and fully vacant. In addition, they have been assigned a percentage of guidance value, which will help in the calculation of the tax. The new tax structure is also expected to simplify taxation and, in turn, increase the revenue for BBMP. In this blog, we will analyze the new property tax system in Bangalore, how the new property tax regime will affect the residents and the steps you can follow to pay the property taxes.


 Tax Regime Before the New Bangalore Property Taxes

Being a resident of Bangalore, it is important to know the difference between the new property tax structure from the old one. The regime before the new property tax collection system has some drawbacks in terms of tax calculation. The city was divided into six zones with 18 different property categories under the previous Unit Area Value [UAV] property tax system. This tax system which was implemented in the year 2008, had some drawbacks as the public ended up wrongly declaring their property details resulting in penalties. There was also an issue where residents with lower guidance values were taxed at higher rates compared to those with higher values in other zones, as a result of guidance values changing from 2008 to 2016.

 Consequences of Not Paying Property Tax on Time

Property owners who fall behind in making prompt property tax payments may face serious penalties and consequences. Paying the property tax on time is essential to stay compliant and avoid legal consequences in Bangalore. However, following these rules could avoid you from having to face dire penalties and heavy interests. In the case of non-payment of property tax, the Bangalore Municipal Corporation might first give a notice and then confiscate the property in extreme circumstances.

How to Pay Bangalore Property Tax Online

Property owners can pay property tax through online portals even with the implementation of the new Bangalore property tax system. The possibility of online payments throughout the purchasing process has created a more customer-friendly approach. To pay property tax online, property owners can follow these steps:

  1. Gather documents: Before you start the online tax payment process, gather all the necessary documents and information like the Khata certificate, the previous year’s property tax receipt and the Property Identification Number[PID].

    Images of Khata certificate | Jones Asset Management

            Image of Khata Certificate

     

    previous years property tax receipt with PID | Jones Asset Management

       Previous year’s property tax receipt with PID

     

  2. Visit BBMP website: Visit the official website of Bruhat Bengaluru Mahanagara Palike[BBMP] at https://bbmptax.karnataka.gov.in/ to pay your property tax online.

    Image of BBMP home page highlighting where to find Property Tax page | Jones Asset Management

                      Image of BBMP home page

  3. Fill in details: After selecting the ‘Property Tax’ option, fill in the necessary details on the page and click on ‘Fetch Details’ which will then display your property tax details for the current year.

    Image of Property Tax page and the form that needs to be filled and highlight the Fetch Details| Jones Asset Management

                      Property Tax page and form

  4. Verify and pay the property tax: Verify the property tax details and make the payment with your desired payment option like debit card, credit card, e-wallet and net banking.

  5. Download the receipt: Once the payment for property tax is successful, the website will generate a receipt, download it and keep it for your records.

Tips for Efficiently Managing Your House Tax in Bangalore

Managing a property and the tax payments along with it can be hectic, however planning and handling the property tax with a little help can go a long way. Here are a few tips to help you manage your house tax effectively:

  1. Keep track of property tax assessment notices: Notices for property tax assessments are sent out periodically by the BBMP. It is important for you to ensure that you keep getting these notices and follow the evaluation of your property.

  1. Understand tax calculation: Be acquainted with property tax calculating techniques to guarantee that you are not overpaying the tax. The recently introduced property tax system in Bangalore follows a standardized method of calculation that depends on parameters like the size of the property, its nature of usage and the age of the property.

  1. Set reminders for payment deadlines: Note down the due dates for property tax payments and be sure to set reminders so that you will not miss them. Making use of online services to pay your Bangalore property tax, can make the process easy and ensure on-time payments.

  1. Seek professional assistance: In a situation where you find the property tax calculation and payment process is very complex and stressful, consider consulting a professional. Tax advisors or chartered accountants who specialize in property tax are the right persons to turn to when you have property tax matters that are too hard to deal with, in turn minimizing the confusion.

Addressing Common Queries Related to Bangalore Property Tax

1. Can property tax be paid in monthly installments and when is it supposed to be paid?

Property tax can only be paid in a lump sum. The Bangalore property tax collection system does not allow residents to pay the tax in installments. In addition, the tax is to be paid within 31 March of the subsequent FY of the financial year[FY]. For instance, for FY 2023-24, property tax must be paid by March 2024.

2. In case a property tax assessment is wrong, what action can be taken?

When the property tax calculation is incorrect, you can raise a concern with the BBMP, and they will review your case and make the required corrections.

3. Are there any exemptions when calculating Bangalore property tax?

The guidelines set by the BBMP provide certain exemptions for categories of property owners like seniors, people with special needs and those who provide environment-friendly places.

 Insights Into the Future of Bangalore Property Taxation System

The new Bangalore property tax system is expected to create a standardized structure to calculate property tax. The system incorporated with technology makes it easier for residents to pay their property taxes. This is not only beneficial for property owners but also will enhance the level of effectiveness of tax corporations as well. The new system targets to solve the disparities in the old property tax system. Issues where residents had to pay higher taxes when the area’s guidance values were low. Homeowners need to keep up with the deadlines and make the payment for property tax on time to avoid any penalties and legal complications. For a smooth and stress-free tax payment process, consult a professional. With Jones Asset Management, the best property management company in Bangalore, you can now make the house-hunting process stress-free as well.

FAQs

  1. What were the key changes introduced in the new Bangalore property tax structure?

The new Bangalore property tax structure is differentiated from the old regime, through the method of calculating property. The property tax will now be calculated based on the guidance value of the property and not the zone.

  1. What was the property tax system like before the recent changes in Bangalore?

The property tax system in Bangalore before the recent changes caused problems with the calculation of the property tax. Some residents had to pay higher taxes even when the property was in a lower guidance value zone compared to the properties in higher guidance value zones.

  1. Can I pay Bangalore property tax online?

Yes, you can pay Bangalore property tax through the online portal of Bruhat Bengaluru Mahanagara Palike. You can visit the official website of BBMP through https://bbmptax.karnataka.gov.in/.

  1. What are the exemptions under the Bangalore property tax?

Property owners like senior citizens, individuals with special needs and owners of environmentally friendly properties can avail exemptions when paying the Bangalore property tax.

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