Bengaluru property owners wait for BBMP to waive property tax penalty

14 Sep 2021 CW Team

In February-March, it served system-generated notices to property owners on charges of paying tax less than due for four assessment years from 2016-17 to 2019-20.

Alleging that owners had selected the wrong zone, the agency inflicted twice the difference amount as a penalty and 24% interest per annum. The BBMP revealed that the notices were wrongfully issued as it hadn’t notified them about zonal reclassification on which new prices were fixed.

It offered a waiver of penalty and interest components and sent it to the government on August 11.

Rakesh Singh, the additional chief secretary of the urban development department, told the media that they have asked for clarifications. They would send the final version to the chief minister Basavaraj Bommai, who will take the decision.

According to the self-assessment scheme designed in 2000, properties are grouped under six zones based on guidance value (minimum selling price fixed by the government) of the locality or street, and the tax rate is fixed accordingly.

While Zone A draws the highest rate, Zone F attracts the lowest. In case an owner selects a lower zone wrongly, they have to pay twice the difference amount and interest.

The rules mandate that BBMP reclassifies zones once in three years based on revised rental value and guidance value. It was last done in 2016-17 but was not informed to the taxpayers.

While notices have been sent to 22,000 property owners, BBMP has obtained more than Rs 16 crore.

BBMP is thinking over a refund, with owners crying foul.

M Venkatachalapathy, joint commissioner (revenue), BBMP, told the media that the sum could be adjusted with a future tax liability if the government agrees.

Rules do not allow it, and officials said that it might bring audit objections.

The issue might figure in the monsoon session of the legislature commencing Monday with Congress members all set to raise it in both assembly and council.

Image Source

Also read: Karnataka government proposes to slash guidance value of properties

More than 78,000 Bengaluru property owners are fretting as the state government dithers over Bruhat Bengaluru Mahanagara Palike’s stated permission to waive penalty and interest on property tax wrongly imposed. In February-March, it served system-generated notices to property owners on charges of paying tax less than due for four assessment years from 2016-17 to 2019-20. Alleging that owners had selected the wrong zone, the agency inflicted twice the difference amount as a penalty and 24% interest per annum. The BBMP revealed that the notices were wrongfully issued as it hadn’t notified them about zonal reclassification on which new prices were fixed. It offered a waiver of penalty and interest components and sent it to the government on August 11. Rakesh Singh, the additional chief secretary of the urban development department, told the media that they have asked for clarifications. They would send the final version to the chief minister Basavaraj Bommai, who will take the decision. According to the self-assessment scheme designed in 2000, properties are grouped under six zones based on guidance value (minimum selling price fixed by the government) of the locality or street, and the tax rate is fixed accordingly. While Zone A draws the highest rate, Zone F attracts the lowest. In case an owner selects a lower zone wrongly, they have to pay twice the difference amount and interest. The rules mandate that BBMP reclassifies zones once in three years based on revised rental value and guidance value. It was last done in 2016-17 but was not informed to the taxpayers. While notices have been sent to 22,000 property owners, BBMP has obtained more than Rs 16 crore. BBMP is thinking over a refund, with owners crying foul. M Venkatachalapathy, joint commissioner (revenue), BBMP, told the media that the sum could be adjusted with a future tax liability if the government agrees. Rules do not allow it, and officials said that it might bring audit objections. The issue might figure in the monsoon session of the legislature commencing Monday with Congress members all set to raise it in both assembly and council. Image Source Also read: Karnataka government proposes to slash guidance value of properties

Infrastructure Energy

22 Dec 2025

Coal Ministry Simplifies Disposal of Washery Rejects

The Ministry of Coal has recently simplified the process for disposal of coal washery rejects to enhance ease of doing business and ensure faster utilisation, while maintaining environmental safeguards. The move aligns with the government’s Atmanirbhar Bharat vision and ongoing reform agenda in the coal sector. Under the existing policy issued on 27 May 2021, washery rejects were disposed of through a three-tier priority system. The first priority allows their use for energy extraction, in line with Solid Waste Management Rules, 2016, applicable to waste with calorific value above 1,500 kca..

Infrastructure Urban

22 Dec 2025

India, Oman Sign CEPA to Boost Trade and Services Ties

India and Oman have recently signed a Comprehensive Economic Partnership Agreement (CEPA), marking a major milestone in India’s strategic engagement with the Gulf region. The agreement was signed in the presence of Narendra Modi and Sultan Haitham bin Tarik, by Piyush Goyal and Qais bin Mohammed Al Yousef. The CEPA provides unprecedented market access for Indian goods, with Oman offering zero-duty access on 98.08 per cent of its tariff lines, covering 99.38 per cent of India’s exports by value. Major labour-intensive sectors such as textiles, leather, footwear, gems and jewellery, enginee..

Technology

22 Dec 2025

TTDF Backs 136 Telecom R&D Projects Worth Rs 5.42 Bn

The Telecom Technology Development Fund (TTDF) Scheme has recently approved 136 projects worth Rs 5.42 billion to strengthen indigenous telecom innovation across India, the government informed Parliament. The scheme focuses on bridging the digital divide by enabling development and manufacturing of advanced telecom technologies for rural and remote areas. In a written reply to the Rajya Sabha, Minister of State for Communications and Rural Development Pemmasani Chandra Sekhar said the TTDF Scheme, launched on 1 October 2022, supports IITs, NITs, MSMEs, start-ups and research institutions work..