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Flaws in online property tax payment system

Last Updated 05 July 2014, 20:23 IST

The online property tax payment in the City has many flaws which need the immediate attention of the Bruhat Bangalore Mahanagara Palike (BBMP).

When Abhay K chose to pay his property tax online, he spotted a major error that he says makes taxpayers pay much more than what they would actually pay at the tax collection centre or what the BBMP property tax handbook suggests.

The existing taxation system under Self Assessment Scheme (SAS) offers concession on property tax with depreciation of a property’s value ranging between three per cent and 18 per cent.

A zero to three years’ old building is entitled to three per cent concession. Besides, the concession increases every three years in multiples of three.

For example, a 0-3 years-old-building is entitled to three per cent concession as depreciation benefit, according to the property tax handbook. If the building is three to six years old, the concession is six per cent. It would be nine per cent if the building is six to nine years old.

The Palike offers a maximum concession of 18 per cent as depreciation cost. One does not, however, get this benefit if he/she pays online, claims Abhay.

According to him, the concession remains three per cent for first nine years of the building if tax is paid online. This is in sharp contrast to the BBMP property tax handbook, which offers concession between three per cent and 9 per cent.

The online tax collection provides a maximum of 12 per cent as against 18 per cent mentioned in the handbook. “The BBMP may not have upgraded the tax collection software and hence people do not get the benefit of concession for depreciation of property as mentioned in the BBMP handbook,” Abhay said.

When contacted, BBMP deputy commissioner (Revenue) I Ramakanth said that he was unaware of such flaws in online payment system, but promised to look into the matter at the earliest. He conceded that the property tax handbook had been not revised for over three years and assured that steps would be taken to that end.
DH News Service

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(Published 05 July 2014, 20:23 IST)

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