I have a property in Bangalore, Zone A, under BBMP jurisdiction. Building is vacant now for 3 years, was tenanted earlier. I have paid the property taxes every year including FY 22-23 online through the BBMP website. According to BBMP official there is a difference between the tax paid by me and actual tax for the property according to them as they have considered the temporary structure on the terrace and build up area. I want to know for how many years can they demand the difference in tax? Is penalty and interest compulosry? What is the rate of Int they will charge.
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Have you been served with a notice to pay the defaulted property tax.
If so you can find the details in the notice itself that from which period are they levying this tax.
If you have evidence for the date of construction of the said temporary structure over your terrace, you can produce the same and deny their claim and issue a legal notice to the authorities concerned denying their allegations as well as follow it up through legal course of act in furtherance.
1) penalty and interest is charged for delay in making payment
2) interest at 2 per cent per month is charged for delay payment
3) section 474 of Karnataka municipal corporation act sets limitation period for collection of tax arrears as 6 years
Yes it's compulsory but if there is an error or lacuna from theri side you can raise the same in your letter
Dear client, they can ask for All the pending tax.
The BBMP is well within its powers to demand fine and interest in respect of any building constructed in deviation from the approved building plan. It is better to get the additional construction regularised, if there be such a regularisation scheme offered by the BBMP sooner to avoid fines and interest.
- As per Karnataka rule, the property tax rate differs for tenanted and self-occupied properties
- Further, the BBMP also offers a 5% rebate on property tax paid in one installment within due date stipulated by BBMP.
- Further, for the delayed payment of property tax attracts interest at 2% per month or 24% per annum.
- Hence, as the said property was tenanted earlier , then the tax can be claimed from the period of tenancy.
- However, if there was temporary structure in the property then it cannot be considered for the calculation of tax.
- Since, you have received the notice from the BBMP , then you can reply the same after attaching the receipt of tax already paid by you and therefore mention all in details for getting exemption from the earlier taxes.
