Paying BBMP Bangalore Property Tax Online

Property tax is a tax collected by municipal corporations across India. The municipalities use the funds raised from property tax to provide civic amenities to its citizens -- roads, sewage, waste management, etc.  

Who pays Property Tax?

The owner of a property, be it a plot of land or a home or a building or warehouse, residential or commercial, within a municipality, must pay property tax.

Bengaluru is a bustling metropolis with a thriving real estate market. A large number of people are migrating to the city and acquiring property there. This article looks at Property Tax levied by the Bengaluru Municipal Corporation, its rules and procedures and how to calculate and pay it.

Read more about Property Tax

Bruhat Bengaluru Mahanagara Palike (BBMP) Property Tax

BBMP is a body that is authorized to collect property tax from property owners in the city. The funds collected are used for maintenance and repair of public amenities like roads, parks, drainage and transport among other things.

How Is Property Tax Calculated by BBMP?

In Bengaluru, property tax is calculated by using the UAV or Unit Area Value method. The Unit Area Value is fixed for properties based on returns expected from the property. This, in turn, is based on whether the property is self-occupied or rented out and where it is located. Property tax is arrived at by multiplying the area of the property with unit area value.

Based on the values released by the Department of Stamps and Registration, BBMP is divided into 6 value zones covering subdivisions and wards.

Points to Remember about Paying BBMP Property Tax

Here are some of the terms you should be familiar with while paying property tax in Bengaluru

• Property Tax Period

  It runs according to the financial year followed in India from March of the current year to April of the following year. For example, tax for FY1819 will need to be paid by April 30, 2019.

• Rebate

  You can get a 5% rebate on property tax if you pay the entire property tax in a single instalment.

• Interest on delayed payment

  You might end up paying 2% interest every month for delayed payment of property tax. If the property tax for the previous year is unpaid, the dues and additional interest would be added to the property tax for the current year.

• Tax refunds

  For taxes paid in advance, if there is a refund due, it will be paid through DD or cheque after proper verification.

• Payment in instalments

  You can also pay the property tax in two instalments without attracting any interest charges. But you will also stand to lose the rebate of 5%.

• Payment in instalments

  You can claim depreciation once during a block period (currently a block period is a span of three years). So, for example, if the depreciation has been claimed in 2016-17, then it cannot be claimed again within the block period till 2018-19.

Calculation of Property Tax

The formula to calculate property tax is:

K=(G-I)*0.20 + Cess (which 24% of property tax)

To calculate property tax, you must know these values:

• G is the gross unit area or the sum of X, Y and Z
• X is the tenant-occupied area of the property multiplied by unit area value multiplied by 10 months
• Y is the self-occupied area multiplied by unit area value multiplied by 10 months
• Z is the vehicle parking area multiplied by unit area value of vehicle parking area multiplied by 10 months
• H is the depreciation rate.
• I is the percentage arrived by multiplying gross unit area and depreciation rate

I= G*H/100. You can find the depreciation table here.

An easier way to calculate property tax would be to use the Online Property Tax Calculator available at the BBMP website

Here’s how you to go about it:

• Visit the online calculator at http://bbmptax.karnataka.gov.in/forms/calculator.aspx
• Choose the type of property under ‘Group’ (for example: Residential Calculator)
• Assessment year is by default 2018-19
• Choose the type of property under ‘Category’ (for example, RCC/ Madras Terrace Building)’
• Choose your zone (let’s say, you choose A)
• Enter the year of construction (assume it is 2016)
• Enter the square feet in built-up area (if you have rented it out enter it under tenanted or under self-occupied) – for example 1000 under self-occupied
• Enter car park area similarly – for example, 100 under self-occupied
• Click submit

The calculator will show you the tax payable.

The UAV for self-occupied residential area is @3 and for car park is @1.5, multiply both by 10 to arrive at GUAV of Rs 31500. Reduce depreciation of 3%. The total amount is Rs 30555. The property tax is 20% of this = Rs 6111.

BBMP Property Tax Forms

Property taxpayers must be familiar with these 6 Forms, whether you are paying the property tax online or otherwise.

Form 1: This white form applies to properties with PID number or Property Identification Number, a unique number for each property comprising your ward, street and plot numbers.  You can locate your PID on the property tax receipt.

Form II: This is for the property owners who have Katha Number for their property. The Katha number is mentioned on the Katha certificate which is a must for each property. This certificate has all the information about the property.

Form III: This green form is for those who do not have a Katha or PID number. In other words, are living in unauthorized constructions that do not have the necessary sanctions of planners.

Form IV: If the property details have remained unchanged from the previous year in terms of occupancy, built up etc, then you can fill Form IV

Form V: This blue form applies to property owners who have made changes to their properties, like increased built-up area, added floors, demolished floors or rooms,  completed construction, or the property has gone from becoming residential to commercial or non-residential property.

Form VI: This form is for payment of service charges only, in cases where the property tax is exempt or waived off.

BBMP Property Tax Online Payment

You can pay your property tax in Bengaluru online.

Step by step guide to paying BBMP property tax online

• Step 1 Visit http://bbmptax.karnataka.gov.in/
• Step 2 Enter your SAS or Property Identification Number. You can find these details in the property tax receipts of the previous year
• Step 3 Click on Fetch.
• Step 4 You will see the details of the property owners.
• Step 5 If there are changes in the property, check mark the box on the page and then click on Proceed. This will take you to Form V.
• Step 6 If there are no changes, then clicking on PROCEED will take you to Form I.
• Step 7 Check for the auto filled date that appears on your screen and the calculations.
• Step 8 Proceed to pay. You can pay at one go or opt for installments while paying online too.

You can choose to pay online either by net banking or credit or debit card or by challan route, in which case, you can pay at the branches of notified banks that have tied up with BBMP for this purpose. The list includes

• IDBI
• IOB
• Kotak Mahindra
• Yes Bank
• Indian Bank
• SBI
• IndusInd Bank
• Maharashtra Bank
• Corporation Bank

On successful completion of the payment, an electronic receipt along with a unique number is made available to you within 24 hours. If you have a problem, you can email BBMP.

You can pay the property tax forms manually and submit them along with the payment at Bangalore 1 Center or at Assistant Revenue Officer’s offices. Certain banks are also authorized to collect property tax at their branches, including:

• Canara Bank
• Axis Bank
• HDFC Bank
• ICICI Bank

You can inquire at the nearest branch of your bank if payment of property tax is available.