Various amenities are provided by the government to the general public through taxes, which are one of their major sources of revenue. In addition to income taxes, goods and services taxes are imposed on a variety of things. In some cases, taxes are governed centrally, while in others, they are governed by the state, and the states receive their revenues for the purpose of funding their state budgets. Taxes on real estate, including vacant land, are levied annually by the State Government through local bodies. In this case, the owner of the property is liable for the bbmp property tax.
Property Tax
A property tax levy is delegated to various municipalities within the state to ensure efficient and smooth maintenance of civic amenities in various localities, such as drainage, cleanliness in the area, public parks, etc. Since property tax is managed by the state government and then delegated to various municipalities, the levy, computation, mode, and manner of payment vary.
For property tax purposes, independent buildings (residential and commercial) are generally included, along with flats and apartments, shops, godowns, and vacant land. Property ownership has its own complexities, and understanding property tax nuances is also an important part of finance and tax planning.
To help our readers understand and plan their Bengaluru property taxes in a better way, we are simplifying the property taxes levied by the Bengaluru municipality in this article.
About Bruhat Bengaluru Mahanagara Palike Property Tax
Every year, property owners in Bengaluru pay property tax to the Bengaluru Municipality body called Bruhat Bengaluru Mahanagara Palike (BBMP). These funds are used by the municipal body to provide civic facilities in Bengaluru. A unit area value (UAV) is used by the BBMP to calculate property taxes. A UAV is calculated based on the expected returns from the property, based on its location and usage.
Property taxes are calculated by multiplying the area of the property by the per square foot tax rate per month (UNIT) based on its location (AREA) and the current property tax rate (VALUE). In accordance with the Department of Stamps and Registration’s guidance value, the BBMP is divided into six value zones. There will be a difference in property tax rates based on the zone in which the property is located.
Payment of BBMP Property Tax
In any given year, property taxes begin in April and end in March of the following year, and taxes must be paid by 30 April of the subsequent fiscal year (FY). Fiscal year 2021-2022 is the current property tax fiscal year
Property tax paid in one installment within the due date stipulated by BBMP is also eligible for 5% rebate
2% per month or 24% per year interest is charged on late property tax payments
There is also the option of paying property tax in two installments without any interest or rebates
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