BENGALURU: BBMP’s special commissioner for revenue, Munish Moudgil, directed zonal officers to focus on the collection of property tax within Palike limits. Addressing a virtual meeting held today on 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.
BBMP had set a target of collecting Rs 5,210 crore in property tax for the 2024-25 fiscal year. So far, Rs 4,604 crore has been collected, which amounts to 88.4% of the target. Yelahanka has reported achieving nearly 100% of the targeted Rs 445 crore collection.
BBMP has also announced 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%. The Karnataka govt amended BBMP Act last year, reducing the penalty on property tax arrears from double the amount to an equal amount. As a temporary relief, it 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. From April 1, any pending property tax will attract a 100% penalty.
Additionally, unpaid taxes from 2022-23 or earlier will accrue an annual interest of 9%, while dues for 2023-24 will have a 15% interest charge.
For the financial year 2024-25, any unpaid amount from April onward will also attract a 15% interest rate. For instance, if a property owner has Rs 1,000 pending from 2022-23, they will be required to pay Rs 2,000, plus an additional 9% interest.
Currently, about 1,82,467 properties in BBMP limits have pending tax dues, with the highest number of defaulters concentrated in Mahadevapura, East, and South zones.
“Previously, only a 100% 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.
Source Homevior.in
