A property tax is an annual tax which is deposited to the urban local bodies that have jurisdiction in that particular area. Whether public, private, residential or commercial, property tax is levied on all the buildings. It is the responsibility of every citizen to pay property tax timely.
In the IT city, Bengaluru, property owners are liable to pay property tax to Bengaluru Mahanagara Palike (BBMP) every year.
How to calculate property tax in Bengaluru?
Talking about residential properties, the BBMP follows a Unit Area Value (UAV) system, to calculate the property tax. Depending upon its location and usage, the UAV is based on expected returns from the property. The calculation is based on per sq ft, per month (unit) basis, for a particular location or street (area) and is then multiplied by the current property tax rate (value).
Based on the guidance value published by the Department of Stamps and Registration, the jurisdiction of the BBMP is divided into six value zones. However, the property tax rate will differ, according to the zone in which the property is located.
Formula to calculate Property tax in Bengaluru:
The formula to calculate the Property Tax is (G – I) x 20%
Here, G is the Gross unit area value
To calculate Gross unit area value i.e. G, one has to determine the following three values:
X = Tenanted area of property x Per sq ft rate of property x 10 months
Y = Self-occupied area of property x Per sq ft rate of property x 10 months
Z = Vehicle parking area x Per sq ft rate of vehicle parking area x 10 months
So G= X + Y + Z
Foe the calculation of I, the Gross unit area value is to be multiplied by Percentage of depreciation rate (depends upon the age of the property) i.e. H and then divided by 100.
So it will be I= G x H/100
With the value of G and I, a property owner can now determine tax amount easily.
In order to lessen such calculation, BBMP has also added and property tax calculator on its websites, where in just by filling some basic details tax can be calculated.
Modes of Payment of Property tax
The best and the most convenient method to pay property tax is through online web portal of BBMP. The payment can be done through, credit card, debit card as well as internet banking. All you have to do is to go on the BBMP website and click on the link to pay property tax. Once you will select, an online property tax calculator will automatically appear on the screen. After calculation, click on the submit button. Once your submission is done, take a print of the payment receipt and keep it with you for future documentation. Ensure there must be no errors; if any then correct them instantaneously.
You can also pay your property tax manually either at citizen felicitation centers or at the offices of BBMP revenue officers (ROs) or assistant revenue officers (AROs).
BBMP also offered rebates in many cases:
- A rebate of five percent, if the entire property tax amount is paid before May 30, every year
- If any property owner wants to pay tax amount in two installments, then no interest is charged on the first installment, if it is paid by May 30 and on the second installment, if it is paid by November 30, every year