BBMP Property Tax

Published On - March 15, 2016

admin Property Tax

Bangalore Property Tax:

With the popularity of Bangalore rising as the destination for work, there are a lot of people who are settling down in the city. When they settle down in Bangalore they, just like every other person in the city, need to pay property tax in Bangalore. The process of paying the property tax has been simplified a lot and now even includes the ability to pay the tax online or through dedicated banks or Bangalore 1 centers. There are even specific banks that have been authorised to collect property taxes from people. To be able to pay the tax, you will first need to know the forms that will be needed and how the tax is calculated.

BBMP Property Tax Forms:

There are 6 forms that are essential to paying property taxes in Bangalore. They are Forms I, II, and III along with Form IV and Forms V and VI.

    • Form I:

Form I is used to when the property owner has the properties PID. The PID (Property Identification Number) is a unique ID assigned to each property and contains information about the ward, street and plot on which the property stands.

    • Form II:

Form II is used when the owner does not have the PID but does have a khatha number. Khatha number is the number of the khatha certificate that is issued for each property and contains all the details relevant to that property.

    • Form III:

This is the form that can be used to pay property tax when the owner has neither the PID or the khata number.

    • Form IV:

Form IV is a white form and is used when there has been no change in the property details. These details can be in relation to increase or decrease in the size of the property, or a change in its statues.

    • Form V:

This is the blue form that can be used when there has been a change in the property. For example, if the owner has added a new floor, or demolished the house or the property classification has changed from residential to non-residential. This form is also used when a property changes status from under construction to constructed.

  • Form VI:

This is the form that will be used when the property under assessment is exempt from paying property tax. Even if it is exempt from property tax, it will still have to pay a service charge that can be paid using this form.

BBMP Property Tax Calculation:

The property tax in Bengaluru can be calculated using the following steps.

Step 1 Make a note of the built up area of the property, value per unit area and the depreciation that is applicable.
Step 2 Multiply unit area value, and built up area and then multiply it by 10 (for 10 months)
Step 3 Reduce the depreciation from the value in step 2 and you will arrive at the total annual value of the property.
Step 4 Take the total annual value calculate 20% of it to get the property tax.
Step 5 Take the property tax and calculate 24% of it to get the cess applicable.
Step 6 Add the property tax to the cess to arrive at the actual payable tax.
Step 7 If you are paying the tax before the due date of 30th April of the assessment year then you are eligible for a 5% rebate
Step 8 Reduce 5% from the value arrived at in Step 6 to get the final amount payable.

Points to Remember while Calculating Property Tax:

When you calculate property tax, there are some things you need to keep in mind while doing your calculations.

These are:

  • Area used as open car parks or cars parked in verandas are not to be included in the built up area. If it is not mentioned in the deed or the plan, you can calculate the area used and subtract it from the built up area.
  • If the house if a residential property but not occupied you can declare it as self-occupied and then calculate the tax.
  • If you finish building after the 1st of October then the tax has to be paid for half the year. If it is finished before the 1st of October then the full annual tax has to be paid.
  • If you have demolished a building then you will still have to pay property tax for vacant land.
  • BBMP has introduced a cess for solid waste management and that too will have to be added to the tax payable but not if the property is vacant land.
  • If you are late in paying the property tax then you will have to add an interest of 2% per month to the payable tax for every month you delay. The annual interest rate is 24%.
  • The property tax can be paid as a whole for the entire year or twice in a year, once for each half of the year.
  • If you are paying the tax in 2 installments then the forms have to be submitted twice.

Only payments of up to Rs. 1,000 can be paid by cash. Payments exceeding this value will have to be made via credit/debit cards, online payments or demand drafts drawn in favour

How to Pay Property Tax in Bangalore?

There are two main ways to pay property taxes in Bengaluru. The first is the manual method and the second is the online method of tax payment.

To pay the property tax the manual way, you will need to fill out all the applicable forms and take them to the authorised centers to pay the tax. The tax can be paid via card or demand draft at these centers. These centers are:

  • Bangalore 1 centre
  • ARO offices

There are some banks also that have been authorised to collect the tax.

These banks are:

  • Canara Bank
  • Corporation Bank
  • HDFC Bank
  • IDBI Bank
  • Induslnd Bank
  • Indian Overseas Bank
  • Kotak Mahindra Bank
  • Yes Bank
  • ING Vysya Bank

BBMP Property Tax Online Payment:

To pay the tax online, all you need is your old and new PID numbers or the base application number. Once you have these details, you can go to the BBMP site and enter them to retrieve the details of the tax due on the property and instruction for paying it online.

BBMP Property Tax Receipt:

The tax receipt issued by the BBMP (Bruhat Bengaluru Mahanagar Palike) will contain all the details about the payment. These details include the application number, payment location, the assessment year, the tax payable, the cess applicable, the total tax payable, any advances paid etc.

If the payment is made via cash, demand draft or credit/debit cards then the receipt will be issued immediately. If it is made online then the receipt will be issued as a soft copy which can be saved and printed out at a later date.

Points to Remember while Calculating Property Tax:

When you calculate property tax, there are some things you need to keep in mind while doing your calculations.

These are:

  • Area used as open car parks or cars parked in verandas are not to be included in the built up area. If it is not mentioned in the deed or the plan, you can calculate the area used and subtract it from the built up area.
  • If the house if a residential property but not occupied you can declare it as self-occupied and then calculate the tax.
  • If you finish building after the 1st of October then the tax has to be paid for half the year. If it is finished before the 1st of October then the full annual tax has to be paid.
  • If you have demolished a building then you will still have to pay property tax for vacant land.
  • BBMP has introduced a cess for solid waste management and that too will have to be added to the tax payable but not if the property is vacant land.
  • If you are late in paying the property tax then you will have to add an interest of 2% per month to the payable tax for every month you delay. The annual interest rate is 24%.
  • The property tax can be paid as a whole for the entire year or twice in a year, once for each half of the year.
  • If you are paying the tax in 2 installments then the forms have to be submitted twice.
  • Only payments of up to Rs. 1,000 can be paid by cash. Payments exceeding this value will have to be made via credit/debit cards, online payments or demand drafts drawn in favour of “Commissioner, Bruhat Bangalore Mahanagara Palike”.