Pay property tax under SAS from Feb. 10

Feb. 2: Bruhat Bengaluru Mahanagara Palike (BBMP) is setting up 370 help centres across the city to help people pay property tax, which is being introduced in the city from February 10. People will have to pay the tax under the revised Self Assessment Scheme at the help centres this year.

From next year onwards, the tax will be collected at the BengaluruOne and citizen service centres. Addressing a press conference on Monday, BBMP commissioner S. Subramanya said property tax would be collected from unauthorised properties as well even if the occupants did not have a katha.

Two separate property registers would be maintained, one for authorised and another for unauthorised structures.
He, however, clarified that paying tax on unauthorised properties did not mean they were regularised. The tax was being collected from them for utilising civic amenities provided by the civic body, he explained.

As the state government decided to withdraw the proposed 20 per cent hike in levy of property tax during the Belgaum session of the legislature recently, owners of commercial establishments will now pay according to rates fixed in 2000. The BBMP council had hiked property tax by 20 per cent for commercial properties in 2006.

The commissioner said a final notification on the revised SAS was issued on January 31 after the rates and zonal classifications were finalised. “The notification also introduced tax on surface parking for non-residential buildings. The annual rates are Rs 100 for two wheelers and Rs 300 for other vehicles per slot respectively,” he added.

Asserting that the BBMP intended to cut down revenue leaks, Mr Subramanya said in all about 18 lakh properties were being brought under the tax net. All objections filed by the public were reviewed and valuable suggestions incorporated before the tax was introduced, he added. A detailed handbook on the tax will be issued shortly to help people pay the tax.

Property tax calculator

First check the zone under which the property lies. For each zone, unit area value is fixed. By using the following seven steps, one can easily calculate property tax payable for residential and non-residential properties.

Step 1: Total built up area X unit area value fixed X 10 months = T1
Step 2: T1 – applicable depreciation (based on the depreciation table) = T2 (Taxable Annual Value)
Step 3: T2 X tax rate (20% tax for residential and 25% for non-residential, as fixed in resolution issued by BBMP administrator) = T3 (property tax)
Step 4: T3 X 24 % cess = T4
Step 5: T3 + T4 = T5 (Total tax)
Step 6: T5 X 5% = T6 (rebate for early payment)
Step 7: T5 – T6 = T7 (Net tax payable)