A guide to paying property tax in Bangalore

Property tax is a recurring payment to be made by property owners to a municipal body of the state in which they own a property. In Bangalore, property tax is paid to the Bruhat Bengaluru Mahanagara Palike (BBMP) by April 30th of every year. The amount to be paid as tax varies based on which zone the property is located in. This tax is used by the state government to provide civic amenities to the public. Few of the facilities covered include constructing seamless roadways, developing a proper sewage system and building recreational parks for people, to name a few.

How is property tax calculated?
The property tax for each property in Bangalore differs based on the location, usage, and occupancy. For the convenience of taxpayers, the entire system has been automated on the official BBMP website. The steps that need to be implemented are discussed below:

Step 1: Choose the appropriate BBMP property tax form
There are six forms available in the BBMP as per the identification requirements offered by the property owners. You can choose your form as per the application.

Name of the form	Application
Form I	To be used when the owner has a unique Property Identification Number (PID) for the property
Form II	To be used when the owner has a Khata certificate with a Khata number of the property
Form III	To be used when the owner has neither the Khata certificate nor the PID of the property
Form IV	To be used when there is no change in the property details like the built-up area, the occupancy or the type of property
Form V	To be used when there is a change in the property details like new construction or changing a residential property to a commercial one
Form VI	To be used when the owner is paying a service charge for a property that is exempted from tax

 

Step 2: Look up the factors that contribute to the property tax
The property tax for a building is calculated based on a Unit Area Value (UAV) system that divides the state into six zones. Each zone has a pre-calculated UAV based on the type of property and whether it is self-occupied or rented out. The property can either be residential, commercial or vacant land. This value is used in the formula to calculate the property tax, making it differ for each location, each type of property and what the property is used for. The main factors that need to be looked up to calculate the property tax are mentioned below:

Zonal classification of your property: Find out which zone your property belongs to get the zonal classification of your property as per the BBMP.

Total built-up area of your property: It is important to note that the built-up area of your property refers to the carpet area and the dimensions of the walls. This does not include the common areas like the corridors, elevators, and lobby, which is usually referred to as the super-built up area.

Car parking area used in the property: The sale deed of the property will have information about the number of square feet allocated for car parking.

Year of completion of construction: This is the year your property was ready to be occupied. This information is also available in the sales deed of the property.

Step 3: Put in your details in the property tax calculator
The official BBMP website offers a well-designed and accurate BBMP property tax calculator to make the entire process of tax payment easy and hassle-free. Once you have all the factors needed that contribute to the property tax, all you need to do is select the category of your property, the zone it is under, the year of construction, the built-up area, and the car park area. You can also read through the BBMP property tax handbook for further insights and get a precise value of the amount of tax you are eligible to pay through the calculator.

Where can property tax be paid?
Apart from the official website, property tax can also be paid manually at the Bangalore 1 Centre or the Assistant Revenue Officer (ARO) offices. Additionally, the Government of Karnataka has authorised a few banks to collect property taxes. The payment can either be made by card or in the form of a demand draft. Few of the banks are listed below:

• Corporation Bank
• Canara Bank
• Indian Overseas Bank
• IDBI Bank
• HDFC Bank
• Yes Bank
• Axis Bank
• ICICI Bank

When is property tax due?
Property tax is calculated from April to March and property owners are eligible to pay the property tax by the April 30th of the following fiscal year. If the owner opts for a payment in two installments, the first installment needs to be made by May 30th and the second one by November 30th to avoid any additional interest rates on the tax.

Can we get a rebate on property tax?
Property owners are entitled to a tax rebate of 5% if the entire property tax is paid before May 30th of every fiscal year. However, it is vital to ensure that the tax paid against your property shows up on your account in the official BBMP website.

The automated property tax calculator developed by BBMP has made it very convenient for property owners in Bangalore to pay their taxes on time and also enjoy tax rebates. It is in pace with the fast-developing urban landscape of Bangalore which is proof that this city is the best option for real estate investment. Whether you are a first time home buyer or an NRI looking to invest in India, make sure you check out the Brigade Group for stunning developments built in the top localities of the city. 

The property can either be residential like Brigade Valencia, commercial or vacant land. This value is used in the formula to calculate the property tax, making it differ for each location, each type of property and what the property is used for.