What is Property Tax?

Property tax can be defined as 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.

BBMP Property Tax – About

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.

Steps For BBMP Tax Payment Online

Check these steps to pay BBMP property tax online –

Step 1 – Visit BBMP tax's official website.

Step 2 – Provide details like Property Identification Number, SAS Application Number and Owner Name.

Step 3 – Click on the 'Retrieve' button.

Step 4 – The page will be redirected to Form IV after sharing accurate details. Fill up the same with essential details.

Step 5 – Click on the box and then on the 'Proceed' button to make changes regarding property, purpose, built-up area, or occupancy.

Step 6 – Make required modifications on being redirected to Form V.

Step 7 - Proceed to make the BBMP tax payment online.

Step 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

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%.