When you own a property, you need to pay property tax to the government. This is a mandatory fee collected by the government to fund local infrastructure projects and services. In India, property tax is collected by the local civic bodies or municipalities.
If you own a property in Bangalore, the Bangalore Development Authority (BDA) is the governing body that collects property tax. In this article, we will provide a complete guide to BDA property tax applicable for loan against property in India.
BDA property tax is the tax collected by the bangalore development authority on properties located within the Bangalore limits. The property tax is based on the annual value of the property, which is determined by several factors including size, location, and usage.
Difference between BDA property tax and BBMP property tax
Feature | BDA Property Tax | BBMP Property Tax |
Authority | BDA | BBMP |
Jurisdiction | BDA layouts and properties developed under BDA | Properties within BBMP limits |
Assessment System | As per BDA rules and guidelines | Based on SAS (Self-Assessment Scheme) |
Payment Portal | BDA official portal | BBMP official property tax portal |
Why is BDA property tax important?
Paying property tax is your responsibility as a property owner. The property tax that you pay is utilised by local authorities to provide basic services like sanitation, water supply, street lighting, and maintenance of public gardens, among others.
Moreover, it is mandatory to pay property tax to avail of various benefits like transfer of property title, building plan approval, and mortgage loans, among others. In case you default on paying property tax, you can be subjected to legal action and penalties.
BDA property tax zones and rates
Zones | Per Sq.Ft rate for vacant land | Per Sq.Ft rate for self-occupied residential property | Per Sq.Ft rate for tenanted residential property | Per Sq.Ft rate for self-occupied commercial property | Per Sq.Ft rate for commercial residential property |
A | Rs 0.50 | Rs 2.50 | Rs 5.00 | Rs 10.00 | Rs 20.00 |
B | Rs 0.40 | Rs 2.00 | Rs 4.00 | Rs 7.00 | Rs 14.00 |
C | Rs 0.30 | Rs 1.80 | Rs 3.60 | Rs 5.00 | Rs 10.00 |
D | Rs 0.25 | Rs 1.60 | Rs 3.20 | Rs 4.00 | Rs 8.00 |
E | Rs 0.20 | Rs 1.20 | Rs 2.40 | Rs 3.00 | Rs 6.00 |
F | Rs 0.12 | Rs 1.00 | Rs 2.00 | Rs 1.50 | Rs 3.00 |
How is BDA property tax calculated?
The BDA property tax is calculated annually based on the annual value of the property. Annual Value (AV) is the estimated rent that the property can fetch if it were to be leased out. The following factors are considered to arrive at the annual value.
1. Unit area value (UAV).
The government determines the Unit Area Value (UAV) based on the guidance value of the property. Guidance value is the minimum price at which the property can be registered with the local sub-registrar office. UAV is the prescribed value per square foot of the property, which varies depending on the locality and the type of property.
2. Built-up area of the property.
The built-up area of the property includes all carpet area, balconies, and utility space. The area is calculated in square feet. The calculation also includes the depreciation value used to arrive at the net annual value (NAV) of the property.
3. Usage of the property.
Depending on whether the property is for residential, commercial, or industrial use, the applicable tax rate is determined. The tax rate for residential properties is lower compared to commercial properties.
4. Age & condition of the property.
The age and condition of the property are also considered. In general, older properties pay less tax as they have depreciated in value over time.
The BDA property tax, which includes a 24% cess tax, is calculated as follows:
Gross unit area value - (Gross Unit Area Value x Depreciation rate / 100) x 20% = 24% cess tax.
The Gross Unit Area Value is the sum of:
- X: Rentable square footage multiplied by the per-zone tax rate and then by 10 (months).
- Y: Owner-occupied area multiplied by the per square foot rate and then by 10 (months).
- Z: Dedicated parking space for X vehicles multiplied by the per square foot rate and then by 10 (months).
What are the applicable taxes?
The BDA property tax comprises three different types of levies:
- One-time levy: This is a one-time tax that is charged at the time of registration of the property. In Bangalore, the one-time levy is 2% of the guidance value of the property.
- Improvement levy: The improvement levy is payable if the property has undergone any renovation or remodelling from the date of registration. The rate of improvement levy varies from 5% to 50% depending on the extent of enhancement.
- Annual property tax: The annual property tax is paid by property owners on the value of the property. The rate of annual property tax is between 0.05% and 0.2% of the annual value.
Required documents for paying BDA property tax online
To pay the BDA property tax online, the following documents are generally required:
- Property details: Unique Property Identification Number (PID), property address, and type of property.
- Assessment number: The tax assessment number issued by the BDA.
- Previous tax payment receipts: Copies of previous year's tax receipts for reference.
- Katha certificate: A certificate confirming the property's registration with the local municipal body.
- Ownership proof: Documents like sale deed or possession certificate to prove ownershi.
Benefits of paying BDA property tax online
Making BDA property tax payment online offers several advantages:
- Quick and secure paymens
- 24x7 accessibility
- Instant payment acknowledgement
- Easy receipt download
- Reduced paperwork
- Faster verification during property transactions
- Convenient tracking of tax payment records
Online payment methods improve transparency and reduce the need for physical visits to service centres.
How to pay BDA property tax online?
The BDA property tax can be paid both online and offline. To pay BDA property tax online, follow the steps below:
- Visit the official website of BDA – www.bdabangalore.org
- Choose the ‘Online services’ option and and then go to the ‘Property Tax’ section
- Enter the property identification number (PID) and click on ‘Search Tax Details’
- Verify the details, including the tax amount
- Choose the payment mode – debit/credit card, net banking, or UPI
- Make the payment and download the payment receipt
Alternatively, you can also pay BDA property tax offline. Visit the nearest Bangalore one or Karnataka one centre and provide the property details and pay the tax in cash or through a bank transaction.
How to heck BDA property tax payment status?
After completing BDA tax payment, property owners can verify their transaction status online.
Steps:
- Visit the official BDA portal.
- Open the Property Tax section.
- Enter Property ID or Assessment Number.
- Select Payment History.
- Verify the latest transaction details.
- Download the payment receipt if required.
Checking payment status ensures the transaction has been successfully recorded.
How to download BDA property tax receipt?
- Log in to the property tax portal.
- Enter PID or Assessment Number.
- Open Payment History.
- Select the relevant financial year.
- Download the receipt in PDF format.
What are the penalties for late payment?
The BDA property tax should be paid on or before the due date. Failing to do so attracts penalties starting from 2% of the tax amount for the first 30 days after the due date. Thereafter, a penalty of 2% per month is added until the tax amount is paid in full.
Paying property tax is a legal obligation for all property owners. BDA property tax is a tax collected by the Bangalore Development Authority on properties located within the Bangalore limits. The tax is calculated based on the annual value of the property and the applicable tax rates.
It is important to pay BDA property tax on time to avoid legal consequences and penalties. By following the above-mentioned steps, you can pay the tax easily, both offline and online. We hope this guide on BDA property tax helps you understand its importance and how to pay it.
Common issues faced during BDA property tax payment
Few common issues include:
- Incorrect Property Identification Number (PID)
- Payment gateway failures
- Delayed receipt generation
- Assessment number mismatch
- Pending payment status updates
Property owners should retain transaction IDs for future reference.
