BBMP Collects ₹4,930 Cr in Property Tax, Offers 5% Rebate for Early Payments

Rs 4,930 Crore was netted in property tax in 2024-25, which marks a 25 % increment in previous year’s tax collection of Rs 3,918 Crore. This robust tax collection has given the room for Bruhat Bengaluru Mahanagara Palike (BBMP)  to provide a 5 % tax rebate for property owners, who pay their full property tax for the fiscal year 2025-26 by April 30. BBMP has already notified citizens to take advantage of this offer for timely adherence & early revenue. BBMP’s total target was ₹5,210.47 crore, it managed to collect  94.62% of it.

Yelhanka & Mahadevapura exceeded their targets for annual property tax collection with Yelahanka , in the North Zone, being the trailblazer, 104.36% tax collection amounting to Rs 464 Crore. On the other hand Mahadevapura, in the East , contributed to over 26% of the total property tax collection in the city. Mahadevapura had a 100.12% collection with Rs1310 crore.Mahadevapura has stood out as the city’s most lucrative zone in terms of commercial development and infrastructure.

The record-breaking collection happened because of the One Time Settlement (OTS) scheme introduced in February 2024, waiving the compounding interest on arrears and reduced penalties by 50%. They have planned to cross Rs 6,000 crore as property tax in the 2025–26 fiscal year attributing it to the fact that there has been no change in the property tax rates since 2016.

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This record collections’ major contributing factors were creating SoPs and rules for recovering arrears and door-to-door follow up procedure for arrears and current tax.

Nearing the end of the financial year,BBMP had intensified tax collection by imposing strict penalties on defaulters. They warned that property owners failing to clear dues will face a penalty equal to the pending tax amount, along with an annual interest of up to 15 % from April 1st. 

In addition to the tax rebate, the civic body is also considering reducing parking tax rates for residential properties. They are aiming to standardize and simplify the taxation system for parking spaces amid backlash from Bengaluru residents.

With the municipal body closing near-record tax collections, this 5% rebate in property tax can stand  both as a reward for early adherence and also to front-load revenue collection for FY 2025–26. Residents are urged to take advantage of the rebate before April 30, as BBMP continues to put efforts to streamline taxation and expedite the investment in infrastructure development across Bengaluru.

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