Munish Moudgil, BBMP’s special commissioner for revenue, has instructed zonal officers to prioritise property tax collection within Palike boundaries. During a virtual meeting discussing civic matters, he highlighted that the 2024-25 financial year ends this month, urging officials to expedite the collection of outstanding property tax.
He directed officials to conduct visits to establishments and businesses in their zones that have substantial pending property tax dues to ensure swift collection, according to a TOI report.
For the 2024-25 fiscal year, BBMP established a property tax collection target of Rs 5,210 crore. Currently, Rs 4,604 crore has been collected, representing 88.4% of the target. Notably, Yelahanka zone has nearly achieved its target of Rs 445 crore.
Beginning April 1, BBMP has declared that defaulters will face a penalty equivalent to their pending tax amount, plus annual interest up to 15%. Following last year’s amendment to the BBMP Act by Karnataka government, the penalty on property tax arrears was reduced from double to an equal amount.
A temporary concession capped the penalty at Rs 100 per Rs 100 of unpaid tax for one year. This relief measure expires on March 31, necessitating property owners to settle their dues before the deadline.
“We have already begun taking stringent action against defaulters, including seizing and auctioning properties to recover unpaid tax,” said Moudgil. From April 1, any pending property tax will attract a 100% penalty.
Furthermore, pre-2023-24 unpaid taxes will incur 9% annual interest, whilst 2023-24 dues face 15% interest charges. Starting April, unpaid amounts for 2024-25 will also attract 15% interest.
To illustrate, property owners with Rs 1,000 pending from 2022-23 must pay Rs 2,000, plus 9% interest.
Presently, 1,82,467 properties within BBMP limits have outstanding tax dues, with Mahadevapura, East, and South zones showing the highest concentration of defaulters.
“Previously, only a 100% penalty was imposed for late tax payments, while cases of tax evasion involving misdeclared property details were subject to double the tax amount as a penalty. Now, all cases will be treated under the same penalty structure. With the March 31 deadline fast approaching, we urge property owners to clear their dues immediately to avoid paying double the amount,” said a senior BBMP revenue official.
