June 12, 2024: The Bruhat Bengaluru Mahanagara Palike (BBMP) has extended the one-time settlement (OTS) scheme for property tax defaulters, allowing payment of taxes with a 50% penalty and a full concession on interest until July 31, 2024. This scheme, typically available until May 31, has been extended to provide relief to property owners.
On June 10, 2024, Deputy Chief Minister D.K. Shivakumar, who oversees Bangalore City Development, mentioned that the BBMP had not pressured property owners to pay taxes due to the Lok Sabha elections. The BBMP jurisdiction covers over 20 lakh building owners, with around 4 lakh having unpaid taxes. The civic body will issue khata to property owners 90 days after tax payment. Deputy CM Shivakumar stated that there would be no further extension beyond July 31.
Over 50,000 people have utilised the scheme to pay their property taxes. Property owners who fail to pay by July 31 will be listed as defaulters starting August 1. Official estimates indicate that the BBMP should collect Rs 5,200 crore in taxes, but only Rs 1,300 crore has been collected so far. Additionally, many building owners rent their premises for commercial purposes while paying only residential/housing taxes, violating the law.
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