If you’re a property owner in Bengaluru, the countdown is on!
The Bruhat Bengaluru Mahanagara Palike (BBMP) has made it clear: starting April 1, property tax defaulters will face a steep 100% penalty on their pending dues, along with annual interest rates that can reach up to 15%.
Here’s what you need to know to avoid paying double.
BBMP’s Property Tax Target
For the financial year 2024-25, BBMP set an ambitious property tax collection target of Rs 5,210 crore.
As of now, Rs 4,604 crore—88.4% of the target—has been collected.
While Yelahanka zone has impressively achieved nearly 100% of its Rs 445 crore goal, other zones, including Mahadevapura, East, and South, still report significant pending dues.
BBMP’s Special Commissioner for Revenue, Munish Moudgil, has urged officials to act swiftly.
“We’re in the final stretch of the fiscal year, and there’s no time to waste,” he emphasized, instructing teams to personally visit establishments and businesses with outstanding dues to expedite collections.
What Happens After March 31?
From April 1, the penalty for unpaid property taxes will double your existing dues.
Let’s break it down:
- Penalty: Any pending tax amount will attract a 100% penalty. For instance, if you owe Rs 1,000, you’ll now need to pay Rs 2,000.
- Interest Rates:
- Dues from 2022-23 or earlier: 9% annual interest.
- Dues for 2023-24: 15% annual interest.
- Unpaid taxes from April 2024 onward will also incur a 15% annual interest rate.
This means that delaying payment will only increase your financial burden.
Temporary Relief Ends Soon
Last year, the Karnataka government amended the BBMP Act to provide temporary relief, capping penalties at Rs 100 per Rs 100 of unpaid tax for one year.
This grace period ends on March 31, making it critical for property owners to settle dues immediately to avoid the stiffer penalties kicking in next month.
BBMP’s Stringent Measures
BBMP isn’t holding back.
In recent months, the civic body has taken decisive actions against defaulters, including seizing and auctioning properties to recover unpaid taxes.
As Moudgil pointed out, “We’ve already begun stringent action. From April 1, penalties will be enforced across the board.”
This shift means that all late payments and cases of tax evasion, including misdeclared property details, will now fall under the same penalty structure.
A senior BBMP official reiterated, “With the March 31 deadline fast approaching, we strongly urge property owners to clear their dues immediately.”
Avoid Penalties: Pay Now
As of now, around 1,82,467 properties in BBMP limits have pending tax dues.
Property owners in zones like Mahadevapura and East should act swiftly to avoid heavy penalties and additional interest charges.
Procrastinating could mean paying significantly more than you owe.
If you’re unsure about your tax status, check with BBMP immediately and clear your dues before March 31.
At Proptals, we’re committed to keeping you informed about critical updates that impact property ownership in Bengaluru.
Stay tuned for more insights, and if you have questions about your property taxes or need assistance, feel free to reach out to us.