Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The Bruhat Bengaluru Mahanagara Palike (BBMP) reported a 24.79% increase in property tax collection for the first four months of the current fiscal year, reaching INR 3,065.82 crore. However, the collection still falls short of the target by 60.1%. Key factors include payments from long-term defaulters under the One Time Settlement scheme and property owners revising self-assessments. Despite the deadline, many made last-minute payments, causing server issues. The BBMP plans strict actions against defaulters, including potential property auctions. Significant tax collection increases were noted in areas like Bommanahalli, Mahadevapura, and Yelahanka.
Despite a 24.79% rise in property tax collection, the Bruhat Bengaluru Mahanagara Palike (BBMP) still falls short by 60.1% compared to its targeted tax collection. The BBMP has seen a financially beneficial start to this fiscal year with a 24.79% increase in tax collection, amounting to INR 3,065.82 crore from April 1, 2024, to July 31, 2024, up from INR 2,457.30 crore collected during the same period last year across all eight zones. Advertisement
BBMP Chief Commissioner Tushar Giri Nath mentioned that three main factors contributed to the increase, noting that defaulters who had not paid for a long time had now contributed INR 184 crore. Out of 3,95,250 defaulters, 1,07,344 have settled their taxes under the One Time Settlement (OTS) scheme, contributing an additional INR 271.50 crore.
There are still 2,74,721 defaulters from whom BBMP needs to collect INR 516.21 crore, resulting in an OTS target shortfall of 70.4%. Nevertheless, BBMP is satisfied that it at least recovered some amount.
Secondly, many property owners updated their self-assessed property values, according to him only 6,723 properties had their taxes revised in the first four months, resulting in an additional INR 163.13 crore. However, 16,904 properties are yet to be revised, leaving BBMP with INR 282.59 crore still to be collected and a shortfall of 26.7%. Overall, BBMP had anticipated collecting INR 956.09 crore in property tax from 4,11,751 properties as of April 1, 2024. However, it has only managed to collect from 1,14,067 properties, leaving INR 831.53 crore to be collected from 3,04,810 defaulters.
Although the deadline for the One Time Settlement (OTS) was July 31, there was a significant surge in property tax payments on Wednesday, leading to severe issues. In response, the BBMP central office and other tax offices stayed open late into the night. Those unable to pay online submitted Self-Assessment Scheme (SAS) applications and made payments offline using demand drafts and cheques. Offline payments alone amounted to INR150 crore on Wednesday.
Nath said that the NIC software crashed, and they've received numerous complaints and representations. This issue will be discussed in the government review to assess how many people were unable to pay.
BBMP officials have stated that notices will be sent to property tax defaulters, with the potential for property auctions if payments are not made. Property owners who have not paid their taxes will receive three notices. If they still fail to pay, the revenue department will take strict measures.
Bommanahalli saw a rise in property tax collection from INR 267.12 crore in the first four months of 2023 to INR 316.10 crore in the same period this fiscal year, an increase of 18.32% Dasarahalli's collections grew from INR 70.58 crore to INR 96.21 crore.
The East zone, a significant contributor, increased its collection from INR 456.69 crore in 2023 to INR 544.46 crore in 2024. Mahadevapura experienced a substantial rise from INR 643.43 crore to INR 808.40 crore. Rajarajeshwari Nagar's collections improved from INR 163.99 crore to INR 212.42 crore. The South zone saw an Increase from INR 385.86 crore to INR 479.36 crore, while the West zone collected INR 337.82 crore in 2024, up from INR 294.36 crore in 2023.Yelahanka saw a substantial increase in tax collection, rising from INR 202.27 crore to INR 291.40 crore.
The BBMP reported a 24.79% increase in property tax collection for the first four months of the fiscal year, reaching INR 3,065.82 crore. Despite this rise, collections fell 60.1% short of the target. The increase was driven by payments from long-term defaulters under the One Time Settlement (OTS) scheme and property owners updating self-assessments. However, server issues and last-minute payments caused challenges. The BBMP plans strict actions against remaining defaulters, including possible property auctions, while some zones, like Mahadevapura and Yelahanka, saw significant gains in tax collection.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
