The BBMP has hiked the property taxes after several years by 20% for residential properties and 25% on Commercial properties across Bangalore from 01-04-2016.
Bonus: The Zones have been changed. The upgraded zones will have higher level of taxation.
The property taxes in BBMP limits has been revised and the new tax slabs will come into effect from 01-04-2016.
The increase in the taxes is based on the guideline value or the property registration value and the hike is expected around 10% to 20% and the actual increase as per the guideline value will be around 30% to 40%.
The Bescom has proposed to hike the power tariff by 10% but has been put on hold for now.
The BBMP has revised the property taxes after a very long time and it has been notified. There are major changes in the classification. Click on the link to check the status.
It has been found that the average increase in the property tax is 20% for residential properties and 25% for the commercial properties.
The actual increase is in the range of 40% to 120%, depending upon the zonal classification and the 2014 guidance values.
Click on the link or cut and paste it in your browser
THE RENTAL INCOME FROM THE INVESTMENT IN PROPERTIES (BUILDINGS-CONSTRUCTED) IN BANGALORE IS AS UNDER:
RESIDENTIAL: 2% TO 6% ANNUAL RETURNS.
COMMERCIAL:1% TO 10% ANNUAL RETURNS.
INDUSTRIAL: 1% TO 4% ANNUAL RETURNS.
THE RETURNS ARE ON AN FIVE YEAR AVERAGE, DOES NOT INCLUDE MUNICIPAL TAXES, EXPENSES TOWARDS REPAIRS AND MAINTENANCE, SERVICE TAX AND INCOME TAX.
BUT, THE APPRECIATION IN THE ASSET VALUE ON THE PRESENT MARKET TREND (AVERAGE FOR THE LAST 5 YEARS) IS 1% TO 10% IN RESIDENTIAL, 1% TO 10% IN COMMERCIAL AND 1% TO 4% IN INDUSTRIAL PLOTS, RESPECTIVELY.
AVAIL 5% REBATE ON THE PAYMENT OF FULL YEAR MUNICIPAL TAXES TO BBMP FOR THE CURRENT YEAR 2013-2014, TILL THE END OF APRIL, 2013.