• • • • • • • 1. Introduction Taxes are one of the major sources of revenue for the Government which helps them in funding various amenities to be provided to general public of the Country. Taxes are levied on various things such as income tax on income, Goods and Service Tax on goods or services etc. Certain taxes are governed centrally and certain other taxes are state specific and revenues are received by various states for the purpose of funding State budget. Property tax is one of such tax levied by the State Government through local body on real estate including vacant land year on year basis. This tax is imposed on the owner of the property. Property tax levy is delegated to various municipalities within the states to ensure efficient and smooth maintenance of civic amenities in various localities such as maintenance of local roads, drainage, cleanliness in the area, public parks etc.
4, In case if any tax was paid in advance and after adjusting for the tax for the. But for the payment through cheques, receipt can be generated only after the.
Property tax being governed by State Government and further delegation to various municipalities results in difference in basis of levy, computation, mode and manner of its payment. Property that is included for property tax purpose generally includes independent building (residential and commercial), Flats and apartments, Shops, Godowns, vacant land etc. Create your own minecraft skin. So owning a property has its own complications and understanding the nuances of property tax is also important for an individual in finance and tax planning as well. In this article we will be simplifying property tax levied by Bengaluru municipality and tax benefits of property tax to help our readers understand and plan their bangalore property tax payment in a better way. About Bruhat Bengaluru Mahanagara Palike Property Tax Owners of properties in Bengaluru are liable to pay property tax to Bengaluru Municipality body called Bruhat Bengaluru Mahanagara Palike (BBMP) every year.
The municipal body utilises these funds to provide civic facilities in Bengaluru. The BBMP follows Unit Area Value (UAV) system, for calculating the amount of property tax. The UAV is based on expected returns from the property, depending upon its location and nature of usage of the property.
The computation of property tax is done by multiplying the area of the property by per sq ft tax rate per month (UNIT) that is fixed on the basis of location of the property (AREA) and multiplied by current property tax rate (VALUE). The jurisdiction of the BBMP is divided into six value zones, based on the guidance value published by the Department of Stamps and Registration. The property tax rate will differ, according to the zone in which the property is located. Click for zonal classification details for BBMP property tax purpose: 3.
Payment of BBMP Property Tax • Property tax period starts from April of one year and ends on March of subsequent year and tax to be paid within 30 April of the subsequent FY of the financial year (FY). Current property tax FY is 2017-18 • BBMP also offers 5% rebate on property tax paid in one installment within due date stipulated by BBMP • Delayed payment of property tax attracts interest at 2% per month or 24% per annum • Property tax can also be paid in two installments without any interest and without rebate 4.