How To Calculate And Pay Property Tax (Bangalore)

Instead of heading out in the blazing sun to pay your property tax, you can do it from the comfort of your own home. Read about the online payment process here.

If you’re looking to pay taxes for property located in Bangalore, you may already know by now that the Bruhat Bengarulu Mahanagara Palike (BBMP) no longer accepts physical payments at their offices. Instead, you can pay your property tax online, making the entire process less cumbersome and more convenient. Why head out in the blazing sun when you can pay your property tax from the comfort of your own home?

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In fact, the property tax payment portal that was launched last year has been further simplified. If you are a property owner who uses Form IV (which most property taxpayers use), you will have to fill only a single page form.

If you have to use Form V (for owners whose property has undergone changes in the previous year), the form has been simplified.

(Note: Property tax rates were revised last year and changes were made in zonal classification. These changes were later rolled back. So, you have to be extra careful when you file property taxes using your old application number.)

How to calculate property tax?

Before you pay your property tax, you must be able to calculate how much you need to pay. Different states use different systems to calculate property tax. They can be categorised into three types.

• Annual Rental Value/ARV – This is where the gross annual rent of the property is fixed by the municipal authority and tax will be calculated based on this. Chennai and Hyderabad use ARV.
• Unit Area System/UAS – Here, taxes will be levied based on the per unit price of the property’s area. The rates will be based on the zone in which the property is located. Cities such as New Delhi and Bangalore use UAS.
• Capital Value System/CVS – Under this system, you will need to use the market value of the property to estimate the taxes.

Here are the steps for calculating the taxes applicable in Bangalore.

• Make a note of the built-up area of the property, per-square-feet rate and the depreciation that is applicable
• Multiply the per-square-feet rate and the built-up area. Then multiply it by 10 (for 10 months)
• Reduce the depreciation from the value in step 2 and you will arrive at the total annual value of the property
• Take the total annual value of the property and calculate 20% of it to get the property tax
• 24% of the property tax will be the applicable cess
• Add the property tax and the cess to arrive at the actual tax payable

If you pay the taxes before the due date of 30th April, you will get a rebate of 5%

• Reduce 5% of the tax payable to get the final amount

You can use the following formula for calculating taxes

Property Tax =(T – D) * 20%
Where, T =A + B + C
D =T x P / 100

• T =Total value of property
• R =Rate per-square-feet
• A =Let-out property area × R × 10 Months
• B =Self-occupied area × R × 10 Months
• C =Vehicle parking area × R × 10 Months
• P =Percentage of depreciation rate (based on the age of the property)
• D =Depreciation amount

An example might make it easier. Here’s one.

Let’s take a land where the Rs. 3 per sq.ft. is applicable if rented-out, Rs. 1.50 per sq.ft. for self-occupied and Rs. 0.60 per sq.ft. for car park area. Let’s assume the depreciation rate is 3%. The property tax will be:

A =NA (it’s a totally self-occupied property)

B=1400 x 1.50 x 10=21,000

C=150 x 0.60 x 10=900

T=(A+B+C) =0 + 21,000 + 900 =21,900

D =T x P / 100 =(21,900 x 3)/100 =657

Property tax =(T – D) * 20% =21,900 – 657 x (20/100) =Rs. 4,248.60

Add 24% cess – 4,248.60 x (24/100) =Rs. 1019.66

Total Property tax = 4,248.60 + 1019.66 =Rs. 5,268.26

Numbers leaving you dazed? You can use the tax calculator provided by BBMP – http://bbmptax.karnataka.gov.in/forms/calculator.aspx.

Note these points before you pay the taxes.

• Even if you have demolished the building, you will still have to pay property tax for the vacant land
• Making a late payment? You will have to add an interest of 2% per month for every month of delay. The annual interest rate is 24%
• You can pay property tax for the entire year or twice in a year, once for each half of the year.
• If you are paying the tax twice a year, the forms have to be submitted twice.

Additional Reading: Tax Implications For Property Buyers And Property Sellers

The Process

Here’s how you can pay your property taxes online. If you already know your application number then follow the steps below:

• Log on to the BBMP tax site – http://bbmptax.karnataka.gov.in/
• Enter your SAS base application number
• Click on ‘Fetch’
• If the application number is valid, your property details will be displayed
• Check if the details are accurate and click on ‘Proceed’
• If there have been any changes to your property, such as a change in the built-up area, select the checkbox before clicking on ‘Proceed’
• Got changes? Form V will be displayed. If not, Form IV will show up
• Note that if your zonal classification was revised last year and you paid property tax based on the same, you need to tick the checkbox for changes in the property. You must use Form V to get the earlier zonal classification (the one before the changes were made). Once you fill Form V, any excess property tax paid will be adjusted against the property tax due this year.

If you do not know your application number then follow the steps below:

• Log on to the BBMP tax site – http://bbmptax.karnataka.gov.in/
• Click on Property Tax Calculator to calculate your taxes
• Go back to the homepage
• Select the Property Tax Filing & Payment link
• Read the instructions for tax payment
• Enter your PID number – The Property Identification (PID) number is a unique number generated by the BBMP for identifying your property. This should be available on your previous year’s receipts. If you are paying your property tax for the first time, you might need to get this number from the revenue office of the BBMP.
• Your property details will be generated
• If the details are not generated, you will see the first owner’s name on the form. Select it and continue
• Enter your personal details such as age, profession, and email ID. You also need to choose the area and ward number.
• Choose the zone classification (Skip to How To Choose Your Zone for more info)
• Select the property type and enter property details
• Your property tax calculations will be displayed
• Make the payment
• You are given the option of printing your receipt online

Additional Reading: BBMP Property Tax

You Can Still Use the DD Way

If all this seems like Greek to you, you can still pay your taxes by cheque or Demand Draft (DD) at a Canara Bank branch. The BBMP has tied up with Canara Bank to collect property taxes in the city.

There are 175 branches in Bengaluru that accept property tax payments. But, in order to pay your property tax at the bank branch, you will need to get a challan. Remember to fill up the challan before you stand in the queue for paying your taxes.

You have the option to print the challan online by accessing the Sampanmoola BBMP site. You can also use the BBMP site to print your application. Note that the bank will issue immediate receipts only for cash and DD payments.

If you make a cheque payment you might have to wait for the cheque to get realised to receive the receipt. Also, the counters at the bank will only be open between 10 AM and 2 PM. Another place where you can make your property tax payments is at the BangaloreOne centres. You can contact the BBMP helpline at the following number – 22660000, between 10 AM and 6 PM, for any queries regarding your property tax payment.

Here’s a tip: Save your receipt for next year so that you have your PID handy. That way you won’t need to recalculate your taxes. Just keep your fingers crossed that the rates aren’t changed again.

You might not be very happy about paying property taxes, but the fact that loan rates are still low should cheer you up. Start looking out for that Home Loan, but remember to compare rates before you sign on the dotted line.

Additional Reading: Property Prices Decline Across Cities