Bruhat Bengaluru Mahanagara Palike (BBMP) Property Tax
Bengaluru for many years has been a center of attraction for the tech giants and their establishments. Even the new tech graduates want to be a part of India’s own Silicon Valley. After establishing at the new city, many concerns arise for a person including some legal compliances that one must follow, Property tax is one of them.
The state government of Bangalore has simplified the process of paying tax by introducing the online system or through dedicated banking channels or can pay a visit to the nearest Bangalore One Center and ARO office.
BBMP Property Tax Forms:
BBMP Property Tax Forms are available for the taxpayer to pay their property taxes. Each form is prescribed for a specific person only. The specified forms are listed below:
BBMP Property Tax Forms
This form is for the owner of the property who has the Property Identification Number (PID). The PID is a unique ID assigned to each property and has details such as ward number, street ID, newly allocate property number, etc.
This form can be used by the owner who currently does not have the PID with them but they know their khata number. It is a number of the khatha certificate that is issued against each property and contains all the details related to such property.
The Form III is used in the case when the applicant has neither the PID nor the Khata Number of a property.
When the size or status of the property does not change in the year, then this white form; Form IV is used to pay property tax.
When there is a change in the size or status of the property during the year, then this blue form can be used. For example, if the owner has demolished the entire house or added a new floor to the house or the property subjected to the property tax has changed its classification from a residential to non-residential property. In case the status of property changes such as from ‘under construction’ to ‘constructed’ then also this form is applicable.
When the property is exempt from property tax, it still requires to pay a service charge. Moreover, such a charge is paid with the help of this form for Exempted property.
Modes of Payment of Property Taxes:
As mentioned above any person can pay their property taxes with the help of the following channels:
- Online portal
- Authorized Bank
- BangaloreOne Center or ARO centers
Now let us understand the step by step process under each of these methods
Online Payment of Property Taxes
1. Visit the BBMP Property Tax Portal or click on the link: https://bbmptax.karnataka.gov.in/Default.aspx
The page would be displayed like the one shown below.
2. Now from the drop-down list at the right-hand side select an option for customer identification.
3. After selecting one of the options, enter the details of such an option in the field below and click on Retrieve.
4. After this, the details of the owner related to the options selected will be displayed for checking and confirming. As given in the image below.
5. Now the user is required to check the box for any changes made to the property’s size or status. This is compulsory to check the box or left it as it is. As the next page will be displayed is Either a Form IV or Form V based on the checkbox.
6. If the checkbox remains unchecked, then the next page displays the Form IV required to be checked and confirmed by the owner concerning the auto-populated details.
7. Alternatively, if the owner makes a selection of the box as there are some changes in the size or status of the property, then the Form V as shown in the image below is opened. This form requires the details related to the changes in the property.
8. After clicking on the Proceed to Next Step, the tax liability calculated automatically will be displayed.
9. Confirm by clicking on the checkbox that the details and values are correct.
10. Select the payment option as per your convenience. It can be done either by making use of offline challan or paying online.
11. After the successful completion of payment, the receipt will be available on the portal within 24 hours.
Making Offline payment BBMP Property Taxes
- The owner can pay property tax at the authorized bank by visiting there with the help of cash or credit or debit card. The list of banks authorized to collect tax is as follows:
- IndusInd Bank
- Canara Bank
- ING Vysya Bank
- Corporation Bank
- Indian Overseas Bank
- HDFC Bank
- IDBI Bank
- Kotak Mahindra Bank
- Yes Bank
- The owner can pay their property taxes by visiting the nearest BangaloreOne Center or ARO Center. Moreover, to ease out the complete process there is an option to fill the appropriate form offline and pay the required calculated tax via cash, credit/debit card or Drafts.
Calculating the amount of Property Tax in Bangalore by using the following method:
Property tax (K) = (GAV – I)* 20% + Cess i.e. 24% of property tax
GAV = Gross unit area value, which is the total of the following:
- Tenanted area of property X rate of property per sq. Ft. X 10 months
- Self-occupied area of property X rate of property per sq. Ft. X 10 months
- Vehicle parking area X rate of vehicle parking area per sq. Ft. X 10 months
I = G*D/100, where D = Percentage of Depreciation charged, depending upon the age of the property
Further, the property tax calculation can be simplified by following these steps:
- Ascertain details of the property such as built-up area, the value per unit area and the depreciation rate applicable,
- Multiply the value of the unit area and the value of the built-up area, and then multiply it by 10 for ten months calculation
- Get the total annual value of the property by deducting the depreciation from the above value
- Property tax is calculated as 20% of the total annual value of the property
- The amount of Cess is to be calculated as 24% of this property tax
- The total Property Tax Liability is determined by adding the property tax to this cess
- A rebate of 5% is available to the taxpayer who pays the property tax before the due date, i.e., 30th April of the relevant A.Y.