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BBMP Property Tax Reduction Strategies

calendar23 Apr, 2024
timeReading Time: 4 Minutes
BBMP Property Tax Reduction Strategies

Paying your BBMP property tax on time is the best way to reduce your tax burden and maintain your property. A tax on property is imposed to maintain the appropriate operation of certain public facilities. Individual buildings (both domestic and industrial), flats and condominiums, stores, undeveloped land, etc., are among the types of properties subject to property taxes. It’s critical that you comprehend the nuances of property tax, whether you currently own a property or have just begun the process of purchasing one.

This blog will help us review the Bruhat Bengaluru Mahanagara Palike, or BBMP property tax, imposed by the Bengaluru Municipality.

What is BBMP Property Tax?

The BBMP is the property tax that is levied by the municipal corporation of Bangalore. The amount of the tax for the property as per the BBMP property tax is calculated on the basis of the UAV, which is unit area value. The two main components of the unit area value are the:

  • Property’s location
  • Property’s usage

The BBMP property tax should be levied annually. The BBMP authorities send the owner of the property the bill every year. The amount of the tax considers all the components like the location, type of the property, the size and other essentials. The taxes paid by the owner are then used for the city’s development purposed and other matters. The calculation of the BBMP property taxes is done by multiplying the occupied area of the property with the rate that is fixed as per the square feet. It is again then multiplied by the tax rate of the property. Property owners in Bangalore must pay BBMP property taxes without any delay. Timely tax filing shouldn’t be ignored.

BBMP Property Tax Forms

There are six key forms for the BBMP Property tax. Let’s discuss each form and its use:

  1. Form I

When there is a PID, which is the property’s identification number, with the property owner, Form I is applicable. This PID is the identification given to the property owner, and included are the details of the property.

  • Form II

Form II is applicable when the property owner does not have a property identification number (PID). Instead of a PID, there is a Khata number. This certificate has all the important details of the property.

  • Form III

The property owner who does not possess a Khata number or a property identification number (PID) is required to submit this application.

  • Form IV

This white form is required to be filled out if there are no amendments to the information of the property to change the size of the real estate.

  • Form V

This blue form is needed by property owners who have made modifications to their property, such as adding a floor, demolishing the property, changing the property’s status, which was under construction to construct, or turning it from residential to non-residential.

  • Form VI

When the property is exempted from paying the property tax, then, in that case, the form VI is to be filed.

What are the BBMP Property Tax Reduction Strategies?

There are many effective strategies that can be used as BBMP property tax reduction strategies. These strategies for BBMP property tax are:

  1. One of the most useful and important strategies for BBMP property tax reduction is seeking the assistance of an expert. The expert skilled in property tax can help the property owner with various strategies to reduce the taxes. The professional can also provide tailored strategies for the property. 
  2. The next effective strategy is to maintain the property in good condition. A 5% discount is given on the BBMP property tax if the property is maintained in a very nice way. 
  3. The next BBMP property tax reduction strategy revolves around not paying the tax all at once. The option of paying the taxes in instalments is given. The BBMP property tax can be paid in two instalments. 
  4. When the taxes are paid on the time the BBMP gives a five percent discount to the person paying the taxes as they are paying the taxes on time. Hence, paying taxes on time is also a very effective strategy for reducing the property tax, as it gives a discount to on-time taxpayers.
  5. The most common strategy used for the reduction of BBMP property tax is by claiming deductions and exemptions. An amount of Rs. 5000 can be deducted if you are above the age of 60. 
  6. The other effective strategy for the tax reduction is to apply for the rebate as well. The BBMP also gives a rebate to the owner of the property, who has made vital contributions to society.

Embracing the best BBMP property tax reduction strategies is crucial. Also, besides fulfilling tax obligations, property registration is important.

BBMP Amendment Bill 2024

The Karnataka Assembly enacted the BBMP Amendment Bill 2024, which reduces the monetary penalty against property tax charges in Bengaluru city limits by fifty percent. The penalty sum has been cut in half as a result of this Amendment Bill’s advancement, saving Bangaloreans an incredible Rs 2,700 crore. A total of thirteen to fifteen lakh individuals in Bengaluru city are expected to benefit from the new law, encompassing three lakh partially owned property taxpayers, five lakh taxpayers, and five lakh individuals who are not subject to property taxes.

Additionally, a particular refund for underprivileged groups in society is provided. Slum structures and government housing are not subject to property tax fines. Additionally, structures used for personal use up to one thousand square feet are excluded. According to the Amendment Bill, property tax fines for residential and mixed-use real estate will only need to be paid for a period of no more than five years, regardless of how long the default lasts. If payments are made after five years, interest is not charged.

In a Nutshell

In conclusion, using the effective tax reduction strategies for property taxes can be useful in saving of the money. You can claim all the available deductions along with all the reductions. All the exemptions and deductions are available only when the taxes are paid on time. So, it is also very necessary to be in timely compliance with BBMP property taxes. 

You can contact our experts here at Corpbiz to get professional assistance from our tax experts, who can help you develop significant property tax reduction strategies. 

Frequently Asked Questions

  1. 1-    Is it compulsory to pay the BBMP property tax?

    Yes, it is mandatory to pay the property tax, but non-compliance with the same can result in legal action from the BBMP.

  2. 2-    What is BBMP property?

    BBMP property is basically a tax on the property owned by individuals in Bangalore.

  3. 3-    What is BBMP?

    BBMP is Bruhat Bengaluru Mahanagara Palike (BBMP). 

  4. 4- How do you pay the BBMP property tax for the first time?

    BBMP property tax can be paid online with guidance and assistance from professionals.

  5. 5-    Is it possible to reduce the BBMP property tax?

    Yes, you can use various tax strategies to reduce your property tax.

  6. 6-    Is BBMP tax an annual property tax?

    Yes, BBMP property tax is an annual property tax that is to be paid by 31st March of the financial year.

  7. 7-    What is BBMP PID number?

    The property identification number is known as the BBMP PID number.

  8. 8-    What types of property pay the property taxes in Bangalore?

    Shops, residential property, factories, offices, flats god downs all have to pay the property taxes.

  9. 9-    What is the use of BBMP?

    The city of Bangalore is governed by the BBMP, a municipal body that oversees aspects related to public services, waste management, water supply, public health, etc. 

  10. 10-    When should we pay BBMP property tax?

    The annual tax payment of BBMP property tax usually begins form the month of April and ends in the following year’s March month. 

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