People residing in Bangalore need to pay property taxes to BBMP for different civic amenities every year. Read on to know the BBMP Property Tax in detail.
Tax is one of the primary means of generating income for the Government which enables them to maintain infrastructure like roads, locality, parks, and so on. The Government imposes many taxes, and a few taxes are also state-imposed. The property tax is imposed by the state government and paid by its citizens through a local organisation like the state municipality. This tax is used to collect money from property owned by residents, including vacant land, apartments, shopping centres, and warehouses. So, if you own a property in Bangalore, you must have an in-depth knowledge of BBMP property tax and how it works.
What Is BBMP Property Tax?
If you are someone who owns a property in Bangalore, you need to pay property tax to the state’s municipal body, that is, Bruhat Bengaluru Mahanagara Palike(BBMP), every year. The BBMP uses this money to provide public services and amenities in Bengaluru. BBMP follows the UAV( Unit Area Value) system for calculating the tax amount. UAV calculation is based on predicted profits from the assets and also takes into account the property’s type and location. BBMP’s jurisdiction is divided into six value zones based on the Department of Stamps and Registration’s publishing of guidance values. Depending on the zone in which the property is located, a different property tax rate will be applicable. The six zones are the West zone, East zone, South zone, Yelahanka zone, Dasarahalli zone and Mahadevapura zone.
What Are The Different BBMP Property Tax Forms?
There are six different tax forms for paying property taxes in Bangalore, which are listed below:
Form 1- This form applies to those property owners who have their Property Identification Number (PID). The PID is a dynamic information code or number allocated to the property that consists of all the detailed information related to the road, plot, and keeper of the property.
Form 2- This form applies to the property owners who do not have the PID but do have a Khaata number. The Khaata number is a unique or exclusive number of the Khaata certificate issued for the property, and it consists of all the detailed information about the property.
Form 3- This form needs to be submitted by property owners in Bengaluru who do not have a PID or the Khaata number.
Form 4- Form 4 is submitted by the property owners when there is no involvement of any changes in the property information. This information can be related to a decrease or increase in property size or any status changes.
Form 5- Form 5 is a blue form that is needed by the property owners who have made some changes in their property, such as the construction of a new floor, property transition from non-residential to residential or vice versa, and so on.
Form 6- This BBMP tax form applies to property owners who are qualified for property tax exemptions.
How To Calculate BBMP Tax?
For a particular street or location (area), the BBMP Tax calculation is done on the basis of per square foot, per month (unit) basis, and is then multiplied by the present property tax rate (value). To calculate amount for Property tax payment online Bangalore, you should follow the equation or formula given below:
K(Property tax)= (G-I)*20%+ Cess(24% of property tax) and
G= gross unit area value= X+Y+Z )
I=G*H/100
Where,
X= Tenanted are of property * property rate per square feet * 10 months
Y= self-occupied area of the property * property rate per square feet * 10 months
Z= parking area of vehicle * rate of vehicle parking area per square feet * 10 months H= Depreciation rate percentage, which depends on the property’s age.
According to BBMP Property Tax rules, the property owner needs to pay the tax amount by 30 April of the subsequent financial year. Also, you can pay property tax in two instalments, or you can pay the entire amount once a year. You can receive a 5% discount if you pay your bill before the due date. A monthly interest fee of 2% is applicable to late payments. You make Online Land Registration for the Real Estate Property in 2023!
How To Pay BBMP Property Tax?
BBMP property tax can be paid both offline and online, but all you need to do is pay the tax amount on time without any penalty.
Offline mode:
- Fill up the tax forms with the correct information.
- Then submit the forms at BangaloreOne centre or the ARO office or to specific banks that are authorized for such services are Canara Bank, Yes Bank, HDFC Bank, Indian Bank, Corporation Bank, and many more.
- Taxes totalling up to ₹1,000 can be paid through cash. But the taxes crossing this amount limit need to be paid online or by credit or debit cards.
Online mode:
- Visit the BBMP site for the payment gateway.
- Enter the old or new PID number, Base Application number, or Block Application number to access the property tax due details and instructions for paying BBMP Property Tax online.
- Then finally, choose the payment method and complete the transaction.
What Are The Tax Benefits Of Property Tax?
The property tax paid by the owners can get deducted from the property’s Gross Annual Value (GAV) while determining profits from real estate for the financial year. GAV is the income which is generated by a property on an annual or yearly basis. This can be possible only for two conditions or situations:
- The GAV of the particular property is not zero or NIL. In simple words, the property is not a self-occupied asset.
- Property tax is being paid by the actual owner.
Conclusion
Paying property tax is an important task that needs to be done by every property owner. But the process of computing the property tax is very complicated. BBMP property tax helps the owners of the property in many ways. The procedure of paying the BBMP property tax online is also effortless. For any further information, you can get the best legal assistance from Vakilsearch.
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