BBMP - Bruhat Bengaluru Mahanagara Palike Property Tax

Taxes are one of the major sources of revenue for the government, which helps them fund various amenities to be provided to the general public of the country. Taxes are levied on various things, such as income tax on income, GST on goods or services, etc.

Certain taxes are governed centrally, certain other taxes are state-specific, and revenues are received by various states for the purpose of funding the State budget. Property tax is one such tax levied by the state government through the local body on real estate, including vacant land year on year basis. This tax is imposed on the owner of the property.

Property Tax

A property tax levy is delegated to various municipalities within the states to ensure efficient and smooth maintenance of civic amenities in various localities, such as maintenance of local roads, drainage, cleanliness in the area, public parks etc. Property tax is governed by the state government and further delegation to various municipalities results in differences in the basis of levy, computation, mode and manner of its payment.

Property that is included for property tax purposes generally includes independent buildings (residential and commercial), Flats and apartments, Shops, Godowns, vacant land, etc. So owning a property has its own complications, and understanding the nuances of property tax is also important for an individual in finance and tax planning as well.

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.

About Bruhat Bengaluru Mahanagara Palike Property Tax

Owners of properties in Bengaluru are liable to pay property tax to the Bengaluru Municipality body called Bruhat Bengaluru Mahanagara Palike (BBMP) every year. The municipal body utilises these funds to provide civic facilities in Bengaluru. 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.

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:
 

Payment of BBMP Property Tax

• Property tax period starts from April of one year and ends in March of the subsequent year, and tax is to be paid within 31 March of the subsequent FY of the financial year (FY). For instance, for FY 21-22, property tax must be paid by March 2022.
• BBMP also offers a 5% rebate on property tax paid in one instalment within the due date stipulated by BBMP
• Delayed payment of property tax attracts interest at 2% per month or 24% per annum
• Property tax can also be paid in two instalments without any interest and without a rebate

Computation of Property Tax

Where 
G = Gross unit area value arrived by X+Y+Z and I = G*H/100
X = Tenanted area of property x Per sq. ft. rate of property x 10 months 
Y = Self-occupied area of property x Per sq. ft. rate of property x 10 months 
Z = Vehicle parking area x Per sq. ft. rate of vehicle parking area x 10 months
H = Percentage of depreciation rate, which depends upon the age of the property

Hence, property tax is equal to 20% of the total area of the property (tenanted, self-occupied, and vehicle parking area) multiplied by per sq. ft. rate fixed by BBMP for each kind of usage of property for 10 months reduced by depreciation allowed by BBMP plus 24% cess on property tax.

Please note that depreciation can be claimed once in the block period. No additional depreciation can be claimed for the year  2017-18 and 2018-19 and 2019-2020, if already claimed in 2016-17 as it can be claimed only once in a block period (i.e., 2016-17 to 2019-20)

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 Forms

Anyone paying BBMP tax either manually or online needs to use the following 6 forms:

Due Date & Rebate for BBMP Property Tax

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 June 30th.

How to pay BBMP Property Tax

BBMP property tax can be paid either manually or online.

Online mode

• Go to the BBMP property tax portal
• Enter the earlier SAS Application Number or PID (both available on the last receipt) and click on ‘Retrieve’, which will display property owner details
• Click on ‘Proceed’ if the details displayed are correct and no changes in the property, and this will take you to form IV
• 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
• 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
• 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.
• Further, for any problems faced while using online mode, you can contact BBMP either at dcrev@bbmp.gov.in or raise a complaint here

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 following banks also have been authorised to collect the tax:

• Canara Bank
• Axis Bank
• HDFC Bank
• ICICI Bank

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

• IDBI
• 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.

Tax Benefits

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

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.

Properties Which Attract Property Tax in Bangalore

The following properties are covered under the ambit of BBMP property tax:

• Flats
• Residential houses (both occupied and rented)
• Factories
• Godowns
• Offices
• Shops

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.

Frequently Asked Questions

I have paid property taxes for my rental property related to the previous year, can I claim the benefit under house property now?

Yes, you can claim the benefit of property tax paid on actual payment, and there is no restriction as to which year the property tax is related to.

Is there any limit for the amount to be claimed as property tax?

No, there is no limit as to the amount of property tax to be claimed as a deduction.

Can I claim the property tax paid on the self-occupied property?

No, the property tax paid on the self-occupied property cant be claimed as a deduction from house property income.

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