One in two properties in Bengaluru not paying annual tax, Real Estate News, ET RealEstate

11 months ago


BENGALURU: While Bengaluru is estimated to have nearly 40 lakh properties, only 20.2 lakh have ‘A’ or ‘B’ khatas (revenue documentation) and pay taxes to the Bruhat Bengaluru Mahanagara Palike (BBMP).

According to BBMP data, there are 13.4 lakh ‘A’ khata properties and 6.8 lakh ‘B’ khata properties in the city. The data shows that only 20.2 lakh properties having ‘A’ or ‘B’ khata are paying property taxes to the civic agency.

BBMP estimated that over 15 lakh properties in the city are without ‘A’ or ‘B’ khata documentation and are, thus, not paying a single paisa in property tax.

So, BBMP has planned to launch an initiative to locate and integrate them into the khata system and boost its revenue collection.

The civic body has estimated that there are nearly 40 lakh properties by collating data from various agencies.

BBMP chief commissioner Tushar Giri Nath said recently that many owners allegedly do not opt for ‘B’ khata to avoid property tax payment. To address this , BBMP is obtaining information on building-plan approvals from the townplanning division to identify properties which do not have khata. This will bring such properties within the purview of property tax.

Data shows that there are 13.6 lakh residential properties, a little more than 1 lakh non-residential properties, 8,062 industrial properties and nearly 4.5 lakh other properties paying property tax to BBMP.

BBMP has set an ambitious target of collecting Rs 4,790 crore in 2023-24 under property tax, including cess, compared to Rs 3,155 crore collected the previous year (2022-23). The BBMP has collected over Rs 3,000 crore for the financial year 2023-24 till November first week.

BBMP recently started seizing tax defaulters’ vehicles, freezing their bank accounts and sealing off commercial properties to increase the tax collection. According to BBMP officials, there are a few defaulters who’ve not paid or have underpaid taxes for years together.

BBMP’s revenue officials have served notices on over 10,000 defaulters who together owe the BBMP around Rs 300 crore. Deputy CM DK Shivakumar recently said property tax arrears in Bengaluru city stood at Rs 430 crore.

  • Published On Dec 26, 2023 at 08:36 AM IST

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