BBMP to Send 3 Lakh Property Tax Notices for Under-Assessed Properties in Bangalore

Bangalore's civil body, the Bruhant Bengaluru Mahanagar Palike (BBMP), 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). 

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 legal notices to people for not disclosing taxable property accurately. In simpler terms, many citizens have underassessed their properties, which means they have not given the full details of the building. For example, disclosing the property to be two floors when it might be more or not disclosing the correct property size/area. In Bangalore, such misleading or tax-invasive actions are considered illegal.

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To get to the root of it, BBMP used advanced drone-survey technology to investigate and shortlist properties. They then compared this date to what the owners had declared in their property tax form under SAS. To their surprise, BBMP discovered that around one in six properties was wrongfully disclosed. BBMP sent notices to property owners to pay the correct property tax plus the 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 in the official record, such as the built-up area, usage, and other details.
• 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 is essential in ending property tax fraud and boosting the funds used to maintain public services such as roads, street lights, sewage, etc. When some underreport this, it burdens honest taxpayers and reduces the city's revenue. Underassessing the properties or avoiding the payable tax affects the growth of infrastructure nationwide and puts more strain on responsible tax-paying citizens who never get to enjoy a better standard of living despite paying their fair share of taxes. Such legal notices put anyone under the official radar for regular audits and legal procedures. To avoid it, being transparent with the government and paying your liable taxes is recommended.

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