- By Nidhi Giri
- Mon, 17 Mar 2025 03:27 PM (IST)
- Source:JND
BBMP Property Tax Penalty: Bruhat Bengaluru Mahanagara Palike (BBMP) special commissioner for revenue, Munish Moudgil has instructed zonal officers to focus on the collection of property tax within Palike limits. Addressing a virtual meeting held on Monday over various civic matters, he emphasised that the 2024-25 financial year is set to conclude by the end of this month, and officials must take necessary measures to collect the outstanding property tax without delay.
He instructed officials to visit establishments and businesses with significant pending property tax dues in their respective zones and ensure prompt collection, as per a Times Of India report.
BBMP Property Tax Penalty
As per BBMP, starting April 1, defaulters will have to pay a penalty equal to their pending tax amount, along with an annual interest of up to 15 per cent. The Karnataka government amended BBMP Act last year, reducing the penalty on property tax arrears from double the amount to an equal amount. The govt also capped the penalty at Rs 100 per Rs 100 of unpaid tax for one year. However, this relaxation is set to expire on March 31, making it crucial for property owners to clear their dues before the deadline.
"We have already begun taking stringent action against defaulters, including seizing and auctioning properties to recover unpaid tax," said Moudgil, as quoted by TOI. From April 1, any pending property tax will attract a 100 per cent penalty.
Additionally, unpaid taxes from 2022-23 or earlier will accrue an annual interest of 9 per cent, while dues for 2023-24 will have a 15 per cent interest charge. For the financial year 2024-25, any unpaid amount from April onward will also attract a 15 per cent interest rate.
"Previously, only a 100 per cent penalty was imposed for late tax payments, while cases of tax evasion involving misdeclared property details were subject to double the tax amount as a penalty. Now, all cases will be treated under the same penalty structure. With the March 31 deadline fast approaching, we urge property owners to clear their dues immediately to avoid paying double the amount," said a senior BBMP revenue official, as quoted by the report.