Last Modified: 30 Oct 2018  |  Finance and Investments

If you own a property of any kind, then you will be paying a certain amount of tax on it, known as property tax. This tax is levied on property owners on all kinds of property, both residential and commercial. Vacant plots of land without any construction activity taking place, however, are not liable for property tax. The amount collected is then used by the government to fund public amenities such as sanitation, parks and other facilities. As a property owner, you will be required to pay this tax regardless of whether your property is self-occupied, let out or left vacant. Paying taxes on your property is crucial because if you default on payments, the government can seize your property. If you are unsure of exactly how to pay your property tax in Bangalore or how to calculate the amount payable, here is a guide to everything you need to know.

How is property tax calculated?

Property tax is a state tax, just like stamp duty is, so the exact amount you pay will depend upon the rates set by your state government. Property tax in Bangalore needs to be paid to the municipal body, Bruhat Bengaluru Mahanagara Palike (BBMP). Even within the city, the property tax can vary as it depends upon which of the six specified zones of the city your property falls in. The amount payable as property tax is one of things a property owner should know and is based on a value called the Unit Value Area. This number is based upon the estimated value of the property (taking into account property rates in the locality and whether it is a residential or commercial property).

The total property tax is calculated using the formula:

Property Tax= (G-I) x 20/100

Where,

G=Gross value of the area per sq.ft.

I=Percentage of depreciation

To make the calculation of property tax simple for all property owners, BBMP has introduced a property tax calculator on their website. Using this tool, you can get an accurate estimation of the tax payable on your property.

How to pay property tax in Bangalore?

Property owners in Bangalore have the option of paying property tax online or offline. The introduction of an online portal for property tax payments has made the process very simple and fast. To pay tax online, all you need to do is log onto the official BBMP website and pay the total amount through your credit/debit card or through Internet banking.

How to pay property tax in Bangalore online:

Once you log onto the portal, you can pay your property tax in four easy steps:

1. From the six forms available, pick the one that is appropriate for your type of property. Read the description under each form to ensure that you are picking the right one.

2. Find out the following factors about your property so you can fill out the details without any hassles:

● The zone your property falls under
● The built-up area of your property
● If your property has a car parking area
● The year your property was constructed in

3. Enter all these details into the property calculator on the BBMP website to get the total property tax amount you are required to pay.

4. Fill out the form and make the payment for the property tax amount in the payment mode you find most convenient.

How to pay property tax in Bangalore offline:

If you prefer paying it offline, BBMP has a number of centres where you can do so:

● Nodal banks by the BBMP
● Citizen Facilitation Centres
● Offices of Revenue Officers (ROs) or Assistant Revenue Officers (AROs) of BBMP

At these centres, you can make your payment either through your card or in the form of a demand draft.

When to pay property tax

Property tax in India is usually paid annually, however, you can also choose to pay it in two installments (on a semi-annual basis) if this is more convenient for you. Being punctual with your property tax payments can help you save taxes on your property investment. Paying the tax before May 30th can make you eligible for a tax rebate of 5 percent of the total amount paid as property tax. Paying it before this date can also help you avoid paying interest on the tax. If you are paying it in two installments, ensure you pay the remaining amount by November 30 to eliminate the interest on your property tax.

With these easy tips, paying your property tax doesn’t have to be a complicated or long drawn out process. If you are looking to buy a home this easily as well, make sure you read our Complete Guide for First-Time Homebuyers by Shriram Properties.

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