All you Need to Know about BBMP Property Tax in Bangalore

What is BBMP Property Tax?

You must annually pay property tax to the state's municipal organization, Bruhat Bengaluru Mahanagara Palike (BBMP) if you are a property owner in Bangalore. In Bengaluru, the BBMP uses this money to fund public services and amenities to boost the growth of Bangalore real estate. BBMP uses the UAV (Unit Area Value) system to compute the tax amount. The UAV calculation considers the kind of property and its location in addition to expected asset profits. Based on the Department of Stamps and Registration's publication of guiding values, the BBMP's jurisdiction is split into six value zones. A varied property tax rate will apply depending on the zone in which the property is located. The six zones include Yelahanka, Dasarahalli, West, East, and South, as well as Yelahanka and Mahadevapura.

Properties that Attract BBMP Property Tax Payment?

BBMP Property tax is imposed on properties in Bangalore on the following properties:

● Residential properties, whether rented out or occupied by the owner.

● Factory structures.

● Office structures.

● Godowns.

● Shops.

● Flats.

The jurisdiction of BBMP is divided into six value zones based on the guidance value published by the Department of Stamps and Registration. Different property tax rates will apply depending on the zone in which the property is located. The several zones of Bengaluru are listed below, along with the ward names, numbers, and subdivisions.

How to Calculate BBMP Property Tax?

Three methods can be used to calculate property taxes, including the Annual Rental Value System, the Capital Value System, and the Unit Area System.

Method of Annual Rental Value: Under this system, the BBMP determines the gross yearly rent of a property and assesses tax based on the estimated value. This system is used in Hyderabad and Chennai.

Capital Value System: The Capital Value System forecasts the tax due on the property based on its market value. In this arrangement, the local stamp duty office often fixed the market value of properties.

Unit Area System: In the Unit Area System, the cost of the carpet area is divided by the property's value.

The BBMP Tax is calculated on a per square foot, each month (unit) basis for a specific street or location (area) and is then multiplied by the current property tax rate (value). You should use the equation or formula below to compute the BBMP Property Tax:

K (Property Tax) = (G-I) *20% plus Cess (24% of Property Tax),

G = Gross Unit Area Value of X, Y, and Z.

I=G*H/100

Were

X = Area of Real Estate Under Tenancy * Property Rate Per Square Foot * Ten Months

Y equals the property's self-occupied area multiplied by the price per square foot by ten months.

Z = the vehicle's parking space multiplied by the rate of parking space per square foot times ten months H stands for the age-related depreciation rate %.

BBMP Property Tax regulations provide that the property owner must pay the tax sum by April 30 of the succeeding fiscal year. Additionally, you have two payment options for property tax: split the cost over two installments or pay it all at once. If you pay your invoice before the due date, you'll get a 5% discount. Late payments will be assessed a 2% monthly interest charge.

How to Pay Property Tax in Bangalore?

You can pay BBMP property tax online or offline. You need to visit https://bbmptax.karnataka.gov.in/. Payment of the BBMP property tax 2022-23 is required annually. The top real estate builders in Bangalore must pay the BBMP property tax. The tax year begins in April and lasts through March of the following year. For instance, if you owe property tax for the financial year 2022–2023, you must make sure it is paid by June 30, 2022. The cost of living in Bangalore depends upon the area you choose.

Step 1: visit https://bbmptax.karnataka.gov.in/ to access the BBMP property tax online portal and BBMP Property Tax System.

Step 2: Enter the SAS Application Number or Property Identification Number and press "fetch." By doing this, all of the property owner's details are displayed.

Step 3: Click "Continue" if the information on the screen is accurate and doesn't need to be changed. You will be instructed to complete Form IV if you do.

Step 4: Click the box on the screen and select "continue" if the property needs any adjustments to its usage, occupancy, or built-up area. As a result, you will need to submit Form 5.

Step 5: Verify the accuracy of the information that has been pre-filled. The last step is to pay the tax, which can be done in whole or in installments, either online or with a challan.

Step 6: If you choose the online payment option, you will be taken to a screen where you can choose between using a debit card, credit card, or net banking to make your payment.

Step 7: The system will generate a receipt number once your payment has been accepted. You can view, print, or download this number after 24 hours.