BBMP Property Tax – Municipal Tax Collection in Bangalore

Taxation in India is levied on various properties, starting from flats and independent homes to lands. Each state has its own authority that collects taxes on behalf of the state government and central government. One such municipal authority in Bangalore, Karnataka, is BBMP, which collects property taxes on behalf of the state. The BBMP property tax is levied annually on the owners without considering the property condition.

Each property has different taxation applied depending upon the occupancy and type of property. The BBMP property tax is compulsory for the owners to be paid to avoid any penalty by the authority or the government. To make the payment easy, the government has also given authority to a few banks to collect the tax.

In this write-up, get to know about the various components of BBMP property tax, its rate applied on the properties and how to pay the BBMP property tax online.

What is BBMP Property Tax?

The residents of Bangalore have to pay a property tax to the Bruhat Bengaluru Mahanagara Palike, also known as BBMP, every year. It is a municipal body of the city that utilises the taxes to provide basic civic services, such as road maintenance, water supply, sewer management, education and many more.  

The municipal corporation allows the property owners to pay the BBMP property tax online from anywhere. Even if the property remains vacant, the owners are still liable to pay the tax. The BBMP property tax is collected by the state government through this municipal corporation.

This tax amount is paid annually on the basis of a particular system, Unit Area Volume (UAV), for the calculation of the tax amount. The property location, its nature, and its purpose come under the UAV system. 

BBMP Property Tax Calculation Formula

The formula to calculate BBMP property tax for all properties in Bangalore is:

K = (G – I)*20% + Cess (24% of property tax)

 Where,

• K = BBMP Property Tax
• G = Gross Value Of Unit Area. It is the result of A+B+C
  • A = Property’s tenanted area rate per square feet for 10 months
  • B = Property’s self-occupied area rate per square feet for 10 months
  • C = Property’s vehicle parking area rate per square feet for 10 months
• I = G × D/100
  • D = Depreciation as per the age of the property

How To Make Tax Calculation Easy?

To make the calculations easy, the formula and technique can be broken down in the following way:

• Get the exact information about the property, like built-up area, depreciation value, per unit area value, etc.
• Multiply the value per unit area and built-up area of the property. Then, multiply the new value by 10 (the value 10 denotes months).
• Deduct the depreciation value from the new number. The result will denote the property’s total annual value.
• After that, calculate 20% of the property’s total annual value. The 20% value will be the tax value of the property.
• 24% of the tax value of the property will be the cess value.
• Add the cess value and the tax value. This will give the total amount of BBMP property tax that needs to be paid.
• If the owner of the property pays the tax before the due date, they are liable to get a rebate of about 5% (the due date is 30th April of every assessment year).
• To get the rebated price, deduct the 5% amount from the total value of property tax.  

Few Important Points For BBMP Property Tax Calculation

While calculating the BBMP property tax, there are a few things that the taxpayer should take into consideration. Below are a few considerations related to the property tax in Bangalore:

• The built-up area of the property should exclude the veranda parking area and open parking space.
• If the property is neither self-occupied nor rented, the tax can be calculated by keeping the property occupancy status as self-occupied.
• If the construction of the property is completed after 1st October of an assessment year, the BBMP property tax will also be calculated half for that year. However, if the construction is completed before 1st October, the tax amount will be paid in full.
• Even if there is no building or property constructed/demolished, the taxpayer will have to pay the BBMP tax amount for the vacant land.
• The cess amount for the waste management is only applicable in the case of constructed property on the land. In the case of vacant land, there is no cess amount levied on the taxpayer.
• For the late payment of BBMP property tax, a 2% penalty will be levied every month, along with an added annual interest of 24%.
• The tax can be paid in two interests (half-yearly) or can be paid in full before the due date.
• If the taxpayer opts to pay the tax in two halves, the eligible forms will also need to be submitted twice. 
• If the tax amount is up to ₹1000, it can be paid in cash. The amount exceeding this limit will be paid through online modes, cards or other payment methods.

How to Pay BBMP Property Tax Payment?

There are two ways in which an individual in Bangalore can pay the BBMP property tax. The below mentioned are the steps to pay the tax without any hassle with accurate computation by the corporation.

Pay BBMP Property Tax Online

To pay the BBMP property tax online, follow the steps mentioned below:

Step 1: Visit the official website of BBMP tax.

Step 2: On the homepage, enter the Application Number/PID Number/2008-2015 Renewal Application Number and the name of the owner. The owner’s anime should be only 3 characters. After entering the details, click on the ‘Retrieve’ button.

Step 3: The portal will redirect to a new page of Form IV. Fill in all the details accurately as asked in the form. Click on the square box to accept the terms and click on the ‘Proceed’ button.

Step 4: The portal will now redirect you to Form V, where details can be added or modified. Submit Form V by clicking on the ‘Proceed’ button. 

Step 5: In this new window, select the method (Net Banking, Debit Card or Credit Card) for BBMP property tax online payment. 

A receipt number will be generated by the system within 24 hours of the payment. You can download and print the challan for future reference.  

Pay BBMP Property Tax Manually

To pay the BBMP tax offline or manually, follow the steps mentioned below:

Step 1: Visit the nearest ARO office, authorised banking institution, or BangaloreOne centre.

Step 2: Ask for the BBMP property tax payment form or download it from the portal. Fill in the form accurately with all the details.

Step 3: Pay the tax amount (if the applicable amount is up to ₹1000, it can be paid in cash. However, if the BBMP amount exceeds the bar, the taxpayer will have to pay the BBMP property tax online through debit/credit cards and demand drafts created in favour of the ‘Commissioner’ of the BBMP.  

Authorised Banks for Receiving BBMP Property Tax Payments

There are a few banks that have received the authorisation to collect the BBMP property tax from the owners in Bangalore. The banks that have been given the authority are as follows:

• HDFC Bank
• Canara Bank
• Corporation Bank
• Indian Overseas Bank
• IDBI Bank
• IndusInd Bank
• ING Vysya Bank
• Yes Bank
• Kotak Mahindra Bank

BBMP Property Tax Forms

There are six forms that you need to fill out to pay BBMP property tax to the municipal authority. These forms are as follows:

Download BBMP Property Tax Receipt

To download the BBMP property tax receipt, follow the steps mentioned below:

Step 1: Visit the official portal of BBMP Property Tax.

Step 2: On the homepage, click on the ‘Download’ tab and select the ‘Receipt Print’ from the drop-down menu.

Step 3: In the following window, enter the assessment year and application number. Enter the correct captcha and click on the ‘Submit’ button.

The receipt will be downloaded to the device in PDF format and can be used for future reference.

Tax Benefits From BBMP Property Tax

There are some benefits that you can get on BBMP property tax online or offline payment. The taxpayer will get tax deductions from the property’s Gross Annual Value (GAV). The amount will be deducted from the gross annual income under the property in the assessment year after matching the following criteria:

• The property’s Gross Annual Value (GAV) should not be zero. This is achievable only when the property is occupied by the owner. 
• The property owners pay the BBMP property tax.

How to Find BBMP Tax Payment Details?

To find the tax payment details of BBMP property tax, follow these steps:

Step 1: Visit the official portal of BBMP. 

Step 2: On the homepage, click on the ‘Payment Status’ tab.

Step 3: In the new window, choose to search by ‘Application No.’ or ‘Challan/Transaction No.’ and enter the details in the adjacent space.

Step 4: Click on ‘Retrieve’. The payment details and status will be displayed on the screen.

Steps to Raise BBMP Tax-Related Grievances

Here are the steps to raise any grievances regarding the BBMP tax.

Step 1: Visit the official BBMP tax portal.

Step 2: On the homepage, take your cursor to the ‘Grievance’ tab. In the drop-down menu, select the ‘Raise Ticket’ option.

Step 3: In the new window, enter the details, such as application number, email ID, name of the taxpayer, mobile number, subject of the message and year. In the space given, enter the grievance related to the BBMP Property Tax.

Step 4: Click on the ‘Submit’ button.

BBMP Property Tax Rate for 2022-2023

The BBMP property tax will be based on a good deal of information like the occupancy status, build-up area, etc. Here is the list of properties liable to pay this tax:

• Shops
• Residential Spaces (self-occupied or tenanted)
• Commercial properties
• Office buildings
• Godowns
• Flats

BBMP Property Tax Slab in Bangalore

The tax slab for different properties is different in Bangalore. The occupancy status also defines the tax slab of a property. The tax slab for various properties is tabulated below.

For Residential Property

For Commercial Property

For Vacant Land/Property

For Special Category Lands/Properties

BBMP Property Tax Latest Update

Here’s the latest update on BBMP property tax that you need to know.

BBMP Extends the Rebate Period on Property Tax Payment

The Bruhat Bengaluru Mahanagara Palike (BBMP) has extended 5% rebate on the property tax till 30th May 2022. The taxpayers who pay the BBMP property tax amount in full till the new due date get the rebate offered. The Urban Development Department, on 16th April 2022, announced the new due date for the tax payment. The rebate and payment due date was also extended to May 2021. 

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