February 28, 2024: In a move to provide relief to property tax defaulters in Bangalore, the Karnataka government has asked the Bruhat Bengaluru Mahanagara Palike (BBMP) to implement a ‘one-time settlement scheme (OTS) for the collection of dues under its jurisdiction, according to media reports. The OTS will include payment of the pending tax amount with interest and a penalty for evading tax.
According to an order issued by H S Shivakumar, the under-secretary to the urban development department, on February 22, 2024, said that a penalty of 25% (on tax evaded) will be levied on residential properties with tiled or sheet roof (non-RCC) not exceeding 1,000 square foot (sqft) for own use and having only ground floor.
The government said that no penalty will be levied on slums, government housing facilities for the poor and houses of less than 300 square foot (sqft) for own use in residential properties declared as slums by the Karnataka Slum Development Board or BBMP under the OTS scheme.
The notification orders will be in effect till July 31, 2024.
The BBMP (Amendment) Act, 2024, was passed by the Legislative Assembly on February 21, 2024, to minimise penalties for property tax violations in Bangalore by nearly 50%, with tax penalties applicable only for a maximum period of five years and interest waived off for dues beyond five years.
The amendment bill will pave way for reduced penalty amounts are reduced and savings of Rs 2,700 crore in penalties for the citizens of Bangalore. The BBMP will be able to collect penalties worth Rs 1,000 crore, Deputy Chief Minister and Bangalore Development Minister D K Shivakumar said.
See also: Penalty on BBMP property tax to be reduced by 50%
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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