BBMP to Issue 3 Lakh Notices for Tax Under-Assessment

The Bruhant Bengaluru Mahanagar Palike (BBMP), Bangalore’s civil body, is all set to issue a notice to approximately 2.5 to 3 lakh property owners for under-assessing their property and paying less tax. This step is being taken after the BBMP found out that many property owners gave incorrect details while paying tax under the Self-Assessment Scheme (SAS). Below is the detailed information to understand everything in a simplified manner.

What is a Self-Assessment Scheme?

A Self-Assessment Scheme (SAS), introduced in 2008, is a system where property owners declare their property details, such as the size, usage (residential or commercial), number of floors, and location. This way, the property tax is calculated, making tax paying easy and quick.

Why is BBMP Sending a Property Tax Notice?

BBMP is sending a legal notice to people because they found that many people have underassessed their properties, which means they have not given the full details of the building. For example, some property owners say there are two floors in their details, while the actual property has four floors. They have reported a smaller built-up area than what’s actually constructed. 

To find this one, the BBMP used the drone survey to determine the actual size and number of floors in the building. They then compared this date to what the owners had declared in their property tax form under SAS. To their surprise, they discovered that around one in six properties had some kind of mismatch. Because of this, BBMP has decided to send a notice to the property owners asking them to pay the correct property tax along with penalties. This step is taken to boost the civil body’s revenue, which has a target of around ₹5,700 crore for the fiscal year of 2025-2026. 

Implications of Property Tax

Receiving a notice means property owners must reassess their property details and pay any outstanding taxes and penalties. The BBMP might also introduce a One-Time Settlement (OTS) scheme, similar to the one they introduced last year. This scheme offered waivers on compound interest and reduced the penalty for defaulters by 50%. Last year, more than 3.8 lakh people benefited from this scheme.   

Steps to Take If You Receive a Notice

If you have received a notice from the BBMP, then below are a few steps to keep in mind:

• Review the information carefully and understand the differences and the due amount.
• For any mistakes, verify the property details, such as the built-up area, usage, and other details provided in the official record.
• Consult the BBMP officials for any errors with all the supporting documents to rectify the issue.
• If available, consider the OTS scheme, which will provide relief by reducing the penalties and interest.
• Always check the BBMP website for any new announcements or updates, and make sure you avoid future penalties. 

Conclusion

BBMP’s decision to take this action is important because the property tax fund is essential, and property owners should pay it to maintain public services like roads, street lights, sewage and more. When some people underreport this, it is a burden for honest taxpayers and reduces the revenue of the city. To fix this, BBMP uses modern technology like drone surveys and digital mapping to detect the actual size of the building. Accurate tax collection will lead to better service, and this tool makes the process accurate and transparent, so if you own a property and there is a mistake, then this is your chance to rectify it. You can also take advantage of the OTS scheme if you need to settle any dues.

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