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

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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

Resources

04 Jun 2026

ULCCS Showcases Cooperative Model at UN Symposium

Uralungal Labour Contract Co-operative Society (ULCCS) showcased its community-led development model at the United Nations Headquarters in New York, where it participated as a panellist at the International Symposium on Cooperative Financial Institutions held on 28–29 May 2026.Jointly organised by the United Nations Department of Economic and Social Affairs (UN DESA), the International Cooperative Banking Association (ICBA), and the International Cooperative Alliance (ICA), the symposium was held under the theme ‘Fuelling Inclusive and Equitable Growth’ and brought together policymakers,..

Infrastructure Transport

04 Jun 2026

Delhi Airport to Finalise 20-Year Master Plan

Delhi International Airport Ltd (DIAL) is finalising a 20-year master plan to guide long term infrastructure and operational development at Indira Gandhi International Airport, an official said. The operator expects the plan to reflect changes in the airline industry, shifts in the competitive landscape and evolving infrastructure requirements across terminals, airside and support services. The official said the document is likely to be ready in the next two to two-and-a-half months as the operator moves through planning stages. The plan will be prepared after consultations with airport users ..

Real Estate

04 Jun 2026

Aadhar Housing Finance Targets Rs 500 bn AUM By FY29

Aadhar Housing Finance has set a target to raise its asset under management to Rs 500 billion (bn) by the end of FY29, aiming to achieve this over the next three financial years through an 18-20 per cent loan growth trajectory. The firm focuses on the low-income segment with a ticket size of less than Rs 1.5 million (mn) and has relied on that segment to drive expansion. The company closed FY26 with an AUM of Rs 305.71 bn, reflecting the expansion in recent years, and it reported a net profit rise of 22 per cent to Rs 11.08 bn. Management indicated that gross non-performing assets stood at 1.0..