In a move aimed at providing relief to property tax defaulters in Bengaluru, the Karnataka government has directed the Bruhat Bengaluru Mahanagara Palike (BBMP) to implement a ‘one-time settlement’ (OTS) for the collection of overdue taxes under its jurisdiction.
The OTS initiative encompasses the payment of pending tax amounts along with interest and penalties for those who have evaded tax payments. The order, issued on Thursday by H S Shivakumar, the under-secretary to the urban development department, outlines a penalty of 25% on tax evaded for residential properties with tiled or sheet roofs (non-RCC) not exceeding 1,000 sq ft, limited to the ground floor and for personal use.
However, certain exemptions have been outlined in the government’s directive. Slums, government housing facilities for the economically disadvantaged, and residential properties of less than 300 square feet declared as slums by the Karnataka Slum Development Board or BBMP, will not incur any penalty.
The notification specifies that these orders will be in effect until July 31 this year.
To further alleviate the burden on property owners, the Legislative Assembly passed the BBMP (Amendment) Act, 2024, on Wednesday. The amendment significantly reduces penalties for property tax violations in Bengaluru by nearly 50%. Tax penalties will only be applicable for a maximum period of five years, and interest will be waived for dues beyond this duration.
Deputy Chief Minister and Bengaluru Development Minister D K Shivakumar emphasised the positive impact of the amendment, stating, ‘With the passing of this amendment bill, the penalty amounts are reduced and will save Bangaloreans ₹ 2,700 crore in penalties. The BBMP will be able to collect penalties worth ₹ 1,000 crore.’ This initiative not only provides a financial reprieve for residents but also aims to boost tax compliance in the city.
