Bengaluru Homeowners to Face 100% Penalty on Unpaid Taxes from Apr 1, 2025

As the 2024-25 financial year nears its end, property owners in Bengaluru are urged to promptly clear their outstanding property tax dues. With the deadline of March 31 approaching fast, the Bruhat Bengaluru Mahanagara Palike (BBMP) has announced stringent measures, including a 100% penalty on unpaid property tax, effective April 1. This move is aimed at enhancing tax collection and achieving the fiscal targets set by the civic body.

BBMP’s Push for Property Tax Compliance

BBMP’s Special Commissioner for Revenue, Munish Moudgil, has directed zonal officers to intensify efforts to recover pending property taxes within the Palike limits. Addressing a virtual meeting, he emphasized the urgency of achieving the property tax collection target for the 2024-25 fiscal year.

The civic body had set an ambitious target of ₹5,210 crore for property tax collection this fiscal year. Currently, ₹4,604 crore has been collected, representing 88.4% of the target. Notably, the Yelahanka zone has achieved nearly 100% of its ₹445 crore target, setting an example for other zones. However, significant arrears remain in areas such as Mahadevapura, East, and South, which account for the highest number of tax defaulters.

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New Penalty Structure from April 1

Starting April 1, property owners in Bengaluru will face a hefty penalty for non-payment of property taxes. The Karnataka government had previously amended the BBMP Act, reducing the penalty on property tax arrears from double the amount to an equal amount. While this relaxation was intended as a temporary relief, it expires on March 31, marking the return of stricter penalties.

From April 1 onward:

• Defaulters will incur a penalty equal to their pending tax amount.
• An annual interest rate of up to 15% will be charged on unpaid dues for the 2024-25 financial year.
• Dues from 2022-23 or earlier will attract a 9% annual interest, while dues for 2023-24 will incur a 15% interest rate.

For instance, a property owner with ₹1,000 pending from 2022-23 will need to pay ₹2,000 as a penalty and a 9% interest charge.

BBMP’s Stringent Measures Against Defaulters

BBMP has already initiated stringent actions against property tax defaulters. These include seizing and auctioning properties with significant arrears. With over 1,82,467 properties having pending tax dues, the civic body is leaving no stone unturned in its efforts to recover unpaid taxes.

“Previously, only a 100% penalty was imposed for late tax payments. Now, all cases will follow the same penalty structure,” said a senior BBMP revenue official.

Importance of Clearing Dues Before March 31

With the March 31 deadline fast approaching, property owners are strongly encouraged to settle their dues. Failing to do so will result in substantial penalties, doubling the financial burden for defaulters.

Steps for Property Owners to Clear Dues

To avoid penalties, property owners in Bengaluru should take the following steps:

1. Check Pending Dues: To verify any outstanding property taxes, visit BBMP’s official website or contact the zonal offices.

2. Make Payments Online: BBMP offers an online platform for property tax payments, ensuring convenience for property owners.

3. Seek Assistance: If they have discrepancies or queries, property owners can seek assistance from BBMP’s help centers.

4. Act Promptly: Avoid waiting until the last minute, as delays might lead to technical issues or system downtime.

Impact on Property Owners in Bengaluru

The new penalty structure is expected to encourage timely compliance among property owners. It also underscores the importance of property tax as a crucial revenue source for BBMP, enabling it to fund civic projects and infrastructure development in Bengaluru.

By implementing stringent measures, the civic body aims to instill a sense of accountability among property owners while ensuring that public funds are utilized effectively for the city’s growth and maintenance.

Conclusion

As Bengaluru gears up to meet its property tax collection targets, property owners must promptly clear their dues and avoid hefty penalties. The 100% fine on pending property taxes and high interest rates underscores the significance of timely tax payments. For property owners, this is an opportunity to contribute to the city’s development while avoiding financial burdens.

With the March 31 deadline looming, now is the time to act. Clear your property tax dues and stay compliant to support Bengaluru’s growth and maintain its vibrant urban infrastructure.

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