Property Tax

In Bangalore, property tax is an essential responsibility for property owners. The property tax in Bangalore is regulated by the Bruhat Bengaluru Mahanagara Palike (BBMP), which is the municipal corporation of Bangalore. It is a local tax levied on all properties in the city, both residential and commercial, and is used for the development and maintenance of civic infrastructure like roads, street lighting, water supply, and waste management.

Key Aspects of Property Tax in Bangalore:

1. Who is Liable to Pay Property Tax?

• All property owners in Bangalore are required to pay property tax, regardless of whether the property is residential, commercial, or vacant land. This includes owners of both developed and undeveloped land.
• The tax is based on the property’s location, size, and usage.

2. Components of Property Tax

The property tax in Bangalore is calculated using the Unit Area Value (UAV) system, which is based on the property’s location, type (residential or commercial), and its size. The tax is calculated using the following components:

• Unit Area Value (UAV): A unit area value is assigned to different areas in Bangalore, which varies depending on the locality. For example, prime areas like Koramangala or Indiranagar have higher UAV rates compared to areas on the outskirts.
• Area of the Property: The size of the property (either plot area or built-up area) is also taken into account when calculating property tax.
• Usage Classification: The property tax is categorized based on the use of the property, such as residential, commercial, or mixed-use. Commercial properties usually have higher tax rates than residential properties.

3. Property Tax Calculation Formula

The property tax is calculated using the following formula:

Property Tax = (Unit Area Value (UAV) x Area of the Property) x Property Tax Rate

For residential properties, the tax is further categorized into different slabs based on the construction type, while for commercial properties, the tax rate is typically higher.

4. Property Tax Rates in Bangalore (as of 2024)

The property tax rate varies based on the classification of the property:

Residential Properties:

• R1 (Low-Value Residential): ₹1.50 per square foot per month
• R2 (Medium-Value Residential): ₹2.50 per square foot per month
• R3 (High-Value Residential): ₹3.50 per square foot per month
• R4 (Luxury Residential): ₹5 per square foot per month

Commercial Properties:

• C1 (Small Commercial): ₹10 per square foot per month
• C2 (Medium Commercial): ₹15 per square foot per month
• C3 (Large Commercial): ₹20 per square foot per month

The rates for vacant land depend on the location and classification of the area.

5. Concessions and Rebates

• Senior Citizens: Senior citizens above 60 years are eligible for a 5% rebate on property tax, provided they live in the property and the annual income does not exceed a specified limit.
• Property Tax Rebate for Timely Payment: Property owners who pay their property taxes on time are eligible for a rebate, typically 5% for early payment.
• Other Exemptions: Some properties, such as government-owned buildings, places of worship, and charitable institutions, may be exempt from property tax.

6. Due Dates for Property Tax Payment

Property tax in Bangalore is typically paid in four installments throughout the year:

• First Installment: April to June
• Second Installment: July to September
• Third Installment: October to December
• Fourth Installment: January to March

Property owners can also opt for a one-time payment of the entire annual tax amount at the beginning of the financial year, and receive a rebate for timely payment.

7. How to Pay Property Tax in Bangalore

Property owners can pay their property tax through multiple channels:

• Online Payment: The BBMP has an online portal where property owners can check their property details, calculate the tax, and pay the tax via net banking or debit/credit card.
  • Website: BBMP Property Tax Portal
• BBMP Citizen Service Centers: Property owners can visit the local BBMP office or citizen service centers to pay their tax.
• Post Office: Payments can also be made at select post offices in the city.

8. Penalty for Non-Payment of Property Tax

• Late Payment Penalty: If the property tax is not paid on time, a penalty of 2% per month (24% annually) is levied on the outstanding amount.
• Legal Action: If property tax dues remain unpaid for an extended period, the BBMP can take legal action, including attaching the property and auctioning it off to recover dues.

9. Tax Receipt

After payment, you will receive a property tax receipt, which serves as proof of payment. It’s advisable to keep a copy of the receipt for future reference or for any legal purposes related to the property.