Various amenities are provided by the government to the general public through taxes, which are one of their primary sources of income. Goods and services taxes are imposed on a variety of things in addition to income taxes. In some cases, taxes are governed centrally, while in others, they are governed by state governments, with states receiving their revenues to fund their budgets. Real estate taxes, including those on vacant land, are imposed annually by the State Government. Bbmp property tax is payable by the property owner in this case.
The state delegated property tax levy to various municipalities to ensure efficient and smooth maintenance of civic amenities in various localities, such as drainage, cleanliness, public parks, etc. Property taxes are managed by the state government and then delegated to municipalities, which means that the levy, computation, mode, and manner of payment vary.
The property tax generally includes independent buildings (residential and commercial), flats, apartments, shops, godowns, and vacant land. Understanding property tax nuances is also an important part of financial planning and tax planning when you own a property.
The purpose of this article is to simplify the property taxes levied by the Bengaluru municipality so that our readers can better understand and plan their Bengaluru taxes.
About Bruhat Bengaluru Mahanagara Palike Property Tax
Bengaluru Municipality’s Bruhat Bengaluru Mahanagara Palike (BBMP) collects property taxes every year from Bengaluru property owners. Municipal bodies in Bengaluru use these funds to provide civic facilities. Property taxes are calculated by the BBMP using unit area values (UAVs). Based on its location and usage, UAVs are calculated based on expected returns.
In order to calculate property taxes, the area of the property is multiplied by the monthly tax rate per square foot (UNIT) based on its location (AREA) and the current value of the property (VALUE). The BBMP is divided into six value zones based on the Department of Stamps and Registration’s guidance value. Property tax rates will differ based on the zone where the property is located.
Payment of BBMP Property Tax
Property taxes are due by 30 April of the next fiscal year (FY), which begins in April and ends in March. It is the fiscal year 2021-2022 that is currently in effect for property taxes
It is also possible to receive a 5% rebate if you pay your property tax in one installment within the due date stipulated by the BBMP
Interest is charged on late property tax payments at 2% per month or 24% per year
You can also pay property tax in two installments without interest or rebates