Property Tax in BangaloreThe long-overdue property tax collections in the city is likely to begin on February 10.

In a byfar concrete indication to this effect Bruhat Bangalore Mahanagara Palike Commissioner S Subramanya on Monday said that about 370 help centres dedicated exclusively for property tax collection will start functioning in the city in the next three to four days and tax collections can begin on February 10.

Property tax returns for the year 2008-09 may be filed in two installments by May 30; the last date for the first installment being April 30. Property tax for the year 2009-10 shall be filed before November 30; the last date for the first installment being July 30.

In view of the many flip-flops and confusion that preceeded the government’s decision to go with the Unit Area Value based Self Assessment Scheme and the subsequent decsion to stick to the tax rates that was applicable when SAS was first introduced in year 2000, the BBMP has decided that property tax shall be collected only through the designated help centres for at least a year.

The taxable properties under BBMP now stand at 18 lakh (up from 12 lakh), help centres are being set up in each of the 150 wards at the rate of one help centre for every 4000 households or taxable properties in the area, the Commissioner said. Property tax forms may be downloaded from the BBMP website ( or bought at the help centres.

The government’s decision to collect property tax from unauthorized or illegal buildings or structures too will now see the BBMP maintain two separate property registers.

The Palike, which had almost done away with a property register after SAS was introduced will now maintain two registers – one for buildings against which khatha has been issued and another for those which do not have the khatha.

The BBMP hopes to rake in Rs 550 to 600 crore in the first year under the new scheme.

At a significant cost to the BBMP, owners of commercial structures stand to gain. The 20 per cent hike effected in their tax rate in 2006 is now void and their rates too slides to the introductory SAS 2000 rate. The revert to 2000 rates also means that the BBMP will lose out on almost nine years value in terms of depreciation.

According to the commissioner, the application of GIS for zonal classification and indentification of properties has helped in this regard. Physical verfication of these properties was also done by a team of 150 surveyors, he said.

The final notification on the guidelines for the new scheme was issued by the BBMP Commissioner on January 31. The palike received over 400 objections to the draft notification.

The changes incorporated deals mainly with the government's decision to revert to SAS 2000 during the recent legislature session in Belgaum.

  • The special category annual lump sum tax for properties falling under the 110 villages that became part of BBMP when Greater Bangalore was formed does not apply to houses, villas and apartments approved by local planning authorities, BDA/ KHB or private developers.

They shall follow the prescribed zonal rates.

  • For common facilities like club house and swimming pools in apartment blocks the person heading the apartments association shall file the returns common to all.
  • For hotels with accommodation facilities the room rent clause is revised from the minimum Rs 2,000 base to the average room rent of Rs 2,000 (earlier clause was easily misused)

Some notables attracting tax are:

  • Paying guest accommodations
  • Facilities like lifts or escalators and central air conditioning in non-residential properties (target malls and multiplexes)
  • Surface parking space in non-residential category
  • Telecommunication towers erected on properties irrespective of their zonal classification
    Source:ExpressBuzz , Feb 3rd , 2009