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The Bengaluru civic body has extended its one-time settlement (OTS) scheme for the property tax defaulters until 30 November, following its initial expiration in July and a prior extension to September. This decision, based on a 5 September cabinet meeting, grants taxpayers extra time to clear dues. The scheme, introduced in February, offers defaulters a 100% interest rebate and a 50% penalty reduction. Over 2.6 lakh properties owe INR 474 crores in taxes, with INR 273 crores already collected from 1.3 lakh properties. The BBMP attached 49,487 properties and sealed 4,586 non-residential ones as of 1 September.
The Bengaluru civic body has once again extended the one-time settlement (OTS) scheme for property tax defaulters in Bengaluru, providing an additional two months for property owners to settle their dues. Initially introduced in February 2024, the OTS scheme was first set to expire on 31 July. However, following requests for more time from taxpayers, the deadline was extended until 30 September. Now, in a move aimed at further easing the financial burden on defaulters, the government has pushed the deadline to 30 November. Advertisement
This decision to extend the scheme came after a cabinet meeting held on 5 September, with an official order being issued last week. BBMP special commissioner (revenue) Munish Moudgil emphasised that taxpayers need sufficient time to avail themselves of the scheme and clear their outstanding amounts. The OTS scheme is designed to provide significant financial relief to property tax defaulters by offering a 100% rebate on interest and a 50% reduction in penalties. According to BBMP data, there are currently over 2.6 lakh defaulters across the city, with total unpaid dues amounting to more than INR 474 crore. Despite these staggering numbers, the BBMP has made significant progress in recovering arrears, collecting INR 273 crore from 1.3 lakh properties by 1 September of the ongoing financial year.
In response to multiple requests from property owners, the government also decided to allow a provision for revising property tax returns under the self-assessment scheme. Previously, there was no mechanism for taxpayers to upwardly revise their property tax, which led to confusion and dissatisfaction. The extended OTS scheme now gives property owners the opportunity to rectify their returns and pay any additional dues, thereby promoting compliance. To enforce collections, the BBMP had attached 49,487 properties and sealed 4,586 non-residential buildings by 1 September. The extension of the OTS scheme is expected to ease the process for defaulters while encouraging timely payment of dues and facilitating the clearance of outstanding tax obligations.
The extension of Bengaluru's One-Time Settlement (OTS) scheme for property tax defaulters until 30 November reflects the government's intent to ease financial pressures on taxpayers while promoting compliance. With significant rebates on interest and penalties, the scheme has already helped recover INR 273 crore in unpaid taxes. The extension is expected to provide more time for defaulters to clear their dues and take advantage of the opportunity to revise property tax returns, contributing to a more efficient collection system and reducing outstanding arrears.
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