The constitution has prescribed union list and state list wherein power to make decision by parliament or state legislature in distinguished. It is a state list item, delegated to municipalities in the states to ensure efficient and smooth maintenance of civic amenities like maintenance of local roads, drainage, cleanliness in the area, public parks etc. 

Property for the purpose of property tax generally includes independent buildings (residential and commercial), Flats and apartments, Shops, Godowns, vacant land, etc. 

In this article, we will be simplifying property tax levied by the Bengaluru municipality to help our readers understand and plan their Bangalore property tax payments in a better way.

Who Collects Property Tax In Bengaluru?

• Owners of properties in Bengaluru are liable to pay property tax to the Bengaluru Municipality body - Bruhat Bengaluru Mahanagara Palike (BBMP) every year. 
• The BBMP follows the Unit Area Value (UAV) system for calculating the amount of property tax. The UAV is based on expected returns from the property, depending upon its location and the nature of the usage of the property. 
• The computation of property tax is done based on the per sq. ft. per month (UNIT) that is fixed based on the location of the property (AREA) and multiplied by the current property tax rate (VALUE). 
• The jurisdiction of the BBMP is divided into six value zones based on the guidance value published by the Department of Stamps and Registration. The property tax rate will differ according to the zone in which the property is located.

How to Pay BBMP Property Tax

BBMP property tax can be paid either manually or online.

Online Mode

Step-1: Visit BBMP property tax portal.

Step-2: Enter the earlier SAS Application Number or PID (both available on the last receipt) and click on ‘Retrieve’, which will display property owner details.

Step-3: Click on ‘Proceed’ if the details displayed are correct and no changes in the property, and this will take you to form IV

Step-4: If there are any changes in the property, such as property usage, built-up area or its occupancy, check the box provided on the page and then click on ‘Proceed’ which will take you to form V, if not directly proceed with Step-6.

Step-5: Ensure details pre-filled in the form displayed, including tax computation, are correct and/or modify relevant details in case of change and proceed to pay either fully or in instalments and either online or via challan

Step-6: Choosing the online payment option will take you to the payment page, where you can choose to pay either through net banking or a credit/debit card and complete the payment. Once the payment is completed, a receipt number will be generated, and it takes 24 hours for E-receipt to be available on the portal.

Step-7: Further, for any problems faced while using online mode, you can contact BBMP either at dcrev@bbmp.gov.in or raise a complaint.

Manual Mode

• Visit the Bangalore One Centre or Assistant Revenue Office offices to get the applicable property tax application form
• Fill all the applicable forms and submit them to the Bangalore One Centre or the Assistant Revenue Officer offices.
• Pay the tax either by card or a demand draft.

The BBMP has also tied up with the following banks for property tax payments:

• Canara Bank
• Axis Bank
• HDFC Bank
• ICICI Bank
• IDBI Bank
• Corporation Bank
• Indian Overseas Bank
• YES Bank
• Kotak Mahindra
• Indian Bank
• SBI
• Maharashtra Bank
• IndusInd Bank

If you have chosen challan payment while filling the form online, you can pay the tax at any of the above centers or banks.

How to Pay Property Tax using BDA Online Portal

Taxpayers can pay their overdue taxes to BBMP via BDA’s online portal- www.bdabangalore.org/ or https://propertytax.bdabangalore.org. They first need to be registered on BDA’s portal and sign in to make payments. 

Follow the given detailed steps to easily pay your property taxes online: 

• If you are not registered, go to BDA's tax portal https://propertytax.bdabangalore.org and register yourself by entering your property ID and site ID (as on your previously paid tax receipt). 
• Click on the 'Submit' button. If you are a registered user, you should click on 'Login Here'. 
• On the next page, input your phone number and email ID, then click on the checkbox to agree to the terms and conditions and click 'Submit'.  
•  Type in the one-time password sent to your phone number and tap the 'Submit' button. 
• On the next page, you will see your tax details, including the tax amount, cess, date of payment, and more. Check if the details are correct. 
• Next, navigate to the payment section and click on ‘Pay Now’ to pay your due BDA property tax via debit/credit card or net banking. 

Upon successful payment, you will get an SMS and email confirming your payment. You can also print or download a receipt of your paid taxes.  

Property Tax Rate in Bangalore

In Bangalore, the property tax rate differs for tenanted and self-occupied properties. The property tax rates for six zones are as follows:

Slabs for Residential Property

Slabs for Commercial Property

Steps for calculating Property tax

1. Built up area x Unit Area Value x 10 months = Total 1 (T1)

2. T1 - Applicable Depreciation = Taxable Annual Value

3. Taxable Annual Value x 20% = Property tax 

4. Property tax x 24 % = Cess 

5. Property tax + Cess = Gross Property Tax payable 

6. Gross Property Tax payable x 5% = Rebate for early payment  

7. Gross Property Tax payable - Rebate= Net property tax payable

Please note that depreciation can be claimed once in the block period. The Frequently Asked Questions (FAQs) on BBMP property tax help in understanding detailed technicalities in computing X, Y and Z values above.

BBMP Property Tax Due Date & Rebate

Paying your property tax in a single installment before the BBMP's due date grants you a 5% rebate. However, delaying payment incurs a monthly interest rate of 2%. You can also pay in two installments to avoid interest, but without the rebate, ensure it's done by July 31st.

Due Date, Penalty & Interest

• The property tax for FY 2025-26 should be paid before 31st March 2026, failure will attract a penalty of 100% and a simple interest of 15% on tax dues from April 1, 2026. 
• However, the 100% penalty only apply to defaulters who have not paid property tax for two consecutive years.
• 5% rebate can be claimed if the property tax is paid within 30th April 2025 for FY 2025-26.  

Further, to be eligible to claim a deduction for property tax paid against income from house property, the applicable tax should be paid by the assessee within the ITR filing due date.

Benefits under the Income Tax Act 

Property tax paid can be deducted from the Gross Annual Value (GAV) of the property while computing income under house property in the FY in which it is paid if the following conditions are satisfied:

• GAV of the property is not NIL (self-occupied house property).
• Property tax is paid by the owner.
• Property tax should be paid before the ITR filing due date.

How to Check the Status of BBMP Tax Paid Application?

You can check the status of the BBMP tax paid application after making the payment of the BBMP property tax online. Follow the below process to check the BBMP tax payment status:

• Go to the BBMP property tax portal.
• Click on the ‘Payment Status’ tab on the home page.
• Enter the ‘Application number’, ‘Owner’s Name', and click on the ‘Retrieve’ button. 

• The status will be displayed on the screen.

How to Download BBMP Tax Receipt?

Follow the below process to download the BBMP property tax receipt:

• Go to the BBMP property tax portal.
• Click on the ‘Downloads’ tab and select the ‘Receipt print’ option from the drop-down list.
• Select the assessment year, enter the application number, and captcha code and click on the ‘Submit’ button.
• The property tax receipt will be downloaded in PDF format.

Zone Classification

The Department of Stamps and Registration has published guidance values that divide BBMP's jurisdiction into 6 value zones. The rate at which property tax is charged depends on the specific zone where the property is situated. Below are the different zones in Bengaluru, along with their respective sub-divisions, ward numbers, and names:

• Zone 1: Malleswaram, Rajajinagar, Basavangudi, and Jayanagar
  • Sub-divisions: North, West, South, and East
  • Ward numbers: 1-31
• Zone 2: Banashankari, Koramangala, and BTM Layout
  • Sub-divisions: South, West, and East
  • Ward numbers: 32-58
• Zone 3: Indiranagar, Ulsoor, and Domlur
  • Sub-divisions: East, South, and West
  • Ward numbers: 59-93
• Zone 4: Mahadevapura, Marathahalli, and Whitefield
  • Sub-divisions: East, West, and South
  • Ward numbers: 94-121
• Zone 5: Yelahanka, Hebbal, and Devanahalli
  • Sub-divisions: North, East, and West
  • Ward numbers: 122-150
• Zone 6: Bommanahalli, Begur, and Electronics City
  • Sub-divisions: East, West, and South
  • Ward numbers: 151

The property tax rates will vary depending on the specific zone in Bengaluru where the property is located.