BBMP Property Tax –Introduction

Property owners in Bengaluru bear the Bruhat Bengaluru Mahanagara Palike property tax or BBMP property tax. Even when the property in question is vacant, its owners must pay a tax on it annually.

The tax period for Bruhat Bengaluru Mahanagara Palike starts in April and ends in March (next year). BBMP Bangalore uses the Unit Area Volume System (UAV) to compute the property tax amount. Note that factors like the property's location, its purpose and revenue-generating from it tend to influence the UAV.

Property tax is the amount of money that property owners pay to their respective municipalities or local government bodies, which is decided by the State Government. The municipal corporation of an area is in charge of assessing and imposing taxes either annually or semi-annually. For instance, if you are a Bengaluru resident and own a property in the city, you can pay BBMP property tax every fiscal year.

Typically, the tax liability is computed based on area, property size, building, construction type, etc. Property owners must understand the nuances of property tax to streamline the process. For instance, gaining an insight into the process like accurate computation, filing and payment of BBMP tax makes it easier for property owners to carry out the steps involved in a hassle-free manner.

Steps For BBMP Tax Payment Online

Check these steps to pay BBMP property tax online –

  1. Visit BBMP tax's official website.
  2. Provide details like Property Identification Number, SAS Application Number and Owner Name.
  3. Click on the 'Retrieve' button.
  4. The page will be redirected to Form IV after sharing accurate details. Fill up the same with essential details.
  5. Click on the box and then on the 'Proceed' button to make changes regarding property, purpose, built-up area, or occupancy.
  6. Make required modifications on being redirected to Form V.
  7. Proceed to make the BBMP tax payment online.
  8. Select a suitable payment mode among debit card, credit card or net banking on being redirected to the payment page.

Wait until the system generates a receipt number. You may proceed to view, print or download the BBMP tax challan after the completion of 24 hours.

Click on 'Downloads' and then select the 'Receipt Printout' option. Select relevant Assessment Year and Application Number and then click on 'Submit' to download the receipt in PDF format.

BBMP Property Tax Forms

You need to file any of these 6 BBMP tax forms to pay applicable property tax.

Property Tax Forms Descriptions
Form I Property taxpayers use it with a Property Identification Number (PID).
Form II This form is used when property owners have a Khatha number instead of a Property Identification Number (PID).
Form III Property owners use this form when they neither have a Property Identification Number (PID) or a Khatha number.
Form IV You can use this white form when there are no property details like built-up area, occupancy status, usage, etc.
Form V Property owners use this form when alterations are made to their property.
Form VI It is to be used when the property in question is exempted from BBMP property tax.

BBMP Property Tax Rates

These following properties are subject to BBMP taxes –

  • Residential houses (occupied or rented out)
  • Commercial buildings
  • Office buildings
  • Flats
  • Godowns
  • Shops

The prevailing rates of BBMP Taxes are presented in a tabular format below.

A. Residential Property Tax

The jurisdiction of Bruhat Bengaluru Mahanagara Palike is divided into six zones –

Zones For Self-occupied Property (Per Square Ft. in Rs.) For Tenanted Property (Per Square Ft. in Rs.)
A 2.5 5
B 2 4
C 1.8 3.6
D 1.6 3.2
E 1.2 2.4
F 1 2
 

B. Commercial Property Tax

Zones For Self-occupied Property (Per Square Ft. in Rs.) For Tenanted Property (Per Square Ft. in Rs.)
A 10 20
B 7 14
C 5 10
D 4 8
E 3 6
F 1.5 3

C. Vacant Land Property Tax

Zones Property Tax (Per Square Ft.)
A 0.50
B 0.40
C 0.30
D 0.25
E 0.20
F 0.12
 

D. Property Tax For Special Category

Here is a tabular representation of the annual composite tax for those properties that come under BBMP 110 villages.

 
Area in Square Ft. Tax & Cess
<300 square ft. Rs.100 + cess
Between 301 and 500 square ft. Rs.250 + cess
Between 1001 and 1500 square ft. Rs.750 + cess
>1501 ft. Rs.1000 + cess
 

Steps to Calculate BBMP House Tax

The BBMP house tax calculation formula is –

Property Tax (K) = (G – I) x 20% + Cess

Here, G = X + Y + Z

Also,

G is the Gross Unit Area Value

X is the tenanted property's area × rate of property/sq ft. × 10 months

Y is the self-occupied area × rate of property/sq ft. × 10 months

Z is the area for vehicle parking × rate of parking area/sq ft. × 10 months.

H is the depreciation rate (based on the property's age)

I = Depreciation amount

BBMP Property tax is equivalent to 20% of the property's total area multiplied by per square ft. rate fixed by BBMP based on property use for 10 months Subsequently, the depreciation allowed by BBMP is reduced, and the cess on property tax is added to obtain the tax amount.

Take a look at this example below to gain clarity on BBMP property tax calculation –

The rate of a three-year-old apartment in Zone D would be Rs.3.20/sq ft. in case of being rented out, Rs.1.60/sq ft. in case of being self-occupied and Rs.0.80/sq ft. for a vehicle parking area. Based on the property's vintage, it depreciates at the rate of 3%.

Based on the available information –

X equals to 0 x 3.20 x 10 =0 (Since the property in question is not rented out)

Y equals to 1400 x 1.60 x 10= Rs.22400

Z equals to 150 x 0.80 x 10= Rs.1200

G equal to (X+Y+Z) = 0 + 22,400 + 1200= Rs.23600

I equals to (G x H) /100 = (23,600 x 3)/100 = Rs.708

As per the formula,

(K) = (G – I) x 20% + Cess

K = G – I x 20% = 23,600 – 708 x (20/100) = Rs.4578.40

Cess (24%) on the tax amount,

Rs.4,578.40 x (24/100) = Rs.1098.82

Therefore, the total property tax amount stands at

Rs.(4,578.40 + 1098.82)

Rs.5677.22
 

BBMP Property Tax Payment Due Date & Rebate

30th April is the due date for paying the BBMP property tax. The tax can be paid in 2 instalments. Note that paying the property tax before 30th May of every year makes you eligible for a 5% rebate. Similarly, the second instalment of tax payment can also be tax-free if paid by 30th November. On the other hand, paying taxes after the scheduled deadline will attract a monthly interest of 2%.

Important Things about BBMP Property Tax Payment

Bruhat Bangalore Mahanagara Palike Tax, or BBMP property tax, is a tax that Bangalore homeowners are obligated to pay. It is collected to maintain basic civic facilities and sanitation. Below are some of the key things to remember in relation to BBMP property tax payment.

  • If an individual has not filed the previous year’s property tax report, he/she must file it with the return and dues (if applicable) in addition to current year’s property tax.
  • Every property that comes under the purview of BBMP has a unique GIS-based property identification (PID) number. It is a combination of a taxpayer’s ward, street and plot numbers.
  • Property taxpayers will not be able to report depreciation for FY2017-2018 and FY2018-2019. Note that depreciation can be claimed only once during a block period, i.e., 2016-17 to 2018-19.
  • The built-up area of a property should exclude open car parks or vehicles parked in verandas. Any area that is occupied by vehicles or open car parks should not be included in a property’s built-up area.
  • Individuals who own a property that is neither rented out nor self-occupied can declare it as self-occupied and compute the tax payable accordingly.
  • Individuals who have already paid property tax at least once can use their PID number or SAS base application number to pay BBMP property tax online.
  • If a taxpayer has filed any revised return for a year, he/she has to file the current year’s return on the basis of the revised return.
  • If the construction of a property is completed before October 1st, an individual has to pay tax for the full year. Nevertheless, if construction is completed after October 1st, a taxpayer has to pay the tax amount for only the second half of this year.
  • Taxpayers who pay the entire amount via a single instalment get a 5% discount on the amount that is due.
  • Individuals are liable to pay tax for the vacant land if they have demolished a property. However, note that one does not need to pay BBMP property tax for a vacant site that is less than 1000 square feet.
  • In case an individual has paid property tax in advance, and there’s a balance even after adjusting the taxes of the previous years, the amount will be refunded by the municipal corporation to the concerned taxpayer via cheque or demand draft.
  • Individuals can choose to pay tax levied on a property in two ways. They can pay the entire amount due in one go. Alternatively, they can pay the amount via two instalments which are payable semi-annually.
  • In case a taxpayer fails to pay tax within the due date, a 2% penalty is levied from the next day on a monthly basis. Hence, to avoid paying additional charges, one must make sure to pay the tax amount within the due date.
  • If an individual pays property tax via two instalments, he/she has to use the same form while paying the second instalment. Note that if an owner fails to pay BBMP property tax for a property, the occupier will be liable to pay the tax amount that is due.

Take note of these points to streamline BBMP property tax payment.

FAQ

How can I get my BBMP tax receipt?

Follow these steps to get the BBMP property tax receipt:

  • Step 1: Visit BBMP’s official website
  • Step 2: Navigate to ‘Downloads’
  • Step 3: Select the ‘Receipt printout’ option
  • Step 4: Select assessment year and proceed to add your application number
  • Step 5: Click on the ‘Submit’ button
Subsequently, you can download the BBMP property tax receipt in PDF format.