BBMP property tax assessment

With large properties like malls and tech parks being embroiled in ru the most number of property tax disputes in the city, the civic body has now decided to re-audit all such big properties – tech parks, malls, apartments and industrial units – for property tax assessment.

M.K. Gunasekhar, chairman, Taxation and Finance Committee, BBMP, said on Tuesday that the on-ground station survey of these properties would be completed within two months on a short-term tender. “We have decided to survey 51 shopping malls, 77 tech parks, 4,406 apartments and 4,834 industrial units,” he said.

The heart of most of the property tax suits is not a refusal to pay but an “under declaration” during self-assessment of properties. The dispute has been over the assessment of properties by the BBMP and the property owners in aspects like the tax slab, declaring parking areas and other such places, which BBMP hopes they will discover during the special drive.

“The station survey will discover multiple cases of under declaration and property tax evasion which will increase the revenue for the civic body. This will also help us settle disputes and avoid future legal disputes,” Mr. Gunasekhar said.

Such cross-verification or resurvey by the civic body is in fact mandated by the SAS for Property Tax. The SAS, when it came into force in 2000, mandated a cross-verification of 5 per cent of properties every year, which was raised to 10 per cent in 2009-10. By these standards, all the properties in the city should have been cross-verified at least once by now. However, no such systemic random sampling of properties for cross verification has been done till date.

When quizzed on the measures taken to bring those properties outside the tax net to bring into the net, Mr. Gunasekhar said that the station survey of large properties in the tax net would be followed by efforts to survey such properties as well. He further added that BWSSB water tanks and underground fuel tanks at petrol pumps will also be taxed henceforth.

BBMP collects Rs. 22 crore from November 9

The civic body has collected over Rs. 22 crore of which Rs. 12 crore in cash and the rest in cheque, demand draft and other instruments towards payment of property tax since November 9, following the demonetisation of high-value currency. “This is only marginally higher than our usual collection during this period of the year,” said Mr. Gunasekhar.


Shopping malls – 51

Tech Parks – 77

Apartments – 4,406

Industrial units – 4,834

There are over 4,406 apartment complexes, 90% have deviated and violated all the laws of this country and are not paying right amount of taxes.

In many apartment complexes, properties are rented out or leased, but while making property tax payment, they deliberately falsified or lied to the BBMP that it is for their OWN USE OR SELF OCCUPATION. Even such, tax evasion is under scrutiny.