Under Indian Taxation Law, individuals who own property – residential or commercial, are expected to pay property tax within a fortnight of the commencement of the half-year. The manner of payment differs from city to city and is determined by the respective States.
How is property tax calculated in Bengaluru?
To calculate Property Tax, a prospective home buyer must have certain information before beginning the process. Homeowners must find out the Zone in which the apartment/flat is situated, the total built-up area of the apartment, total parking area allotted and year of construction of the apartment.
- Once this is determined, the applicant must use either Form IV or Form V. Form IV is relevant if the properties have not undergone further construction or modification in the past year or has not undergone a change in usage (self-occupied or tenanted), while Form V is relevant if the property has undergone construction or usage modifications in the past year. The BBMP Zonal Office handles the collection of property tax.
- There is a penalty of 2% per month on total property tax payable if you are late to pay.
- Property tax is calculated on the Unit Area Value system, based on expected returns from property, depending on the location and usage of the property. Since the unit of calculation is based on per sq. ft. per month (UNIT) and for a particular location, street, (AREA) and multiplied by a rate (VALUE), this method of assessment of the property is called “Unit Area Value” method.
- Payments can be made online through the Corporation’s website, or offline, at one of the walk-in counters at the BBMP Zonal Office, at one of the BBMP Citizens Service Centre and Bangalore One outlets.
Calculating property taxes, deciding on hiring property lawyers who can help understand the nuances and property valuation – all these require a lot of tightropes walking. RoofandFloor aims to make your home buying journey easier.