Property Tax is a type of direct tax which government charges so as to develop the infrastructure and provide facilities to the people. In each and every state, the people are bound to pay different types of direct taxes like the income tax, property tax and other such taxes. In this article, we are mainly going to talk about the property tax that you need to pay if you own a property in Karnataka.
To begin with, we would like to tell you that if you own a property in Bengaluru then you are supposed to pay the property tax to BBMP which is also known as Bruhat Bengaluru Mahanagar Palike. The tax is due on an annual basis and it is mandatory to pay the taxes until and until you have a concession under any special category.
Just like Delhi, Bengaluru also follows a Unit Area Value System for the computation of property tax. We are going to touch upon the computation of property tax is the latter part of this article.
Computation of Property Tax in Bengaluru
As mentioned above, the tax computation method in Bengaluru is Unit Area Value System and under this system, there are some of the factors that are considered. Below are the formulas that are used during this computation.
Property Tax = (A-B)*0.2 +Cess (24% of Property Tax)
In above formula, A is the gross unit area value which is basically a sum of tenanted area of property * per square feet rate of property * 10 months, self-occupied area of property * per square feet rate of property * 10 months & vehicle parking area of property * per square feet rate of parking area * 10 months.
B here refers to a product of A and the depreciation rate of property divided by 100.
The formula may seem to be a little complicated so the good part is that you do not have to calculate the property tax yourself. You can rely on the calculators available on the BBMP website. This will help you in the quick and easy calculation of the tax.
Tax Benefits and Penalties
It should be noted that the due date to pay the property taxes in Bengaluru is 30 April and you need to pay the annual tax for the financial year by this date. If you do not pay the tax by this date then the BBMP will penalize you and you will be charged with interest on the outstanding amount. You must also know that BBMP allows people to pay the taxes in two instalments without any interest charges but the drawback of making the payment in two instalments is that you will not get any rebate either. The interest that is charged by BBMP for non-payment of tax is 2% per month on the due amount.
Apart from this, if you pay the tax before the due date then you get a benefit of 5% on the total amount. This helps you in saving some money in direct tax and hence you must always aim to pay the tax on time.
So far, we have discussed about the calculation of property tax and the tax benefits along with penalties. Let us now look at the process to make the payment of property tax online. Here are the details.
Steps to pay BBMP Property Tax in Karnataka Online
- To make the payment of BBMP Property Tax in Karnataka, visit the website https://bbmptax.karnataka.gov.in.
- You can now enter the SAS ore PID number on the right side of the screen. This will be available on the previous year property application. Once you enter the details, you will be redirected to the new page.
- Verify the details listed above and if required, you can change the details of the property as per the present situation. If not, then you can proceed to the next page where the tax computation will be displayed.
- You can verify the tax computation and you will now be able to move to the next step to make the payment of the property tax. You have two options here, you can make the payment in one go or you can choose to make the payment in 2 instalments.
- Once you initialize the payment, you will be able to make the payment using Net Banking, Credit card, Debit Card or UPI. Post payment, a receipt will be generated and you need to take the printout of the receipt. You can even print it for your reference.
- With this, the payment of your property tax is complete. If you choose to make payment in instalment then remember the next due date and make the payment of the rest of the amount during this time.
This was all the information about the property tax in Bengaluru. For any other information or help, you can get in touch with BBMP with help of the email ID contactus@firstname.lastname@example.org. Also, there is a provision to raise the complaint using the BBMP Portal and the details of the same are listed online on the BBMP website.