Property tax collection dips as Palike fails to fix glitch

The BBMP is yet to fix the glitch in its software even after 48 days of starting the property tax collection process.

When only 12 days are left to avail the benefit of 5 per cent concession in the tax, many property owners are reluctant to pay their taxes due to the complicated process and the software glitch.

The new software has badly affected the tax revenue. So far, the BBMP could garner Rs 416 crore as against Rs 1,080 crore by the end of May last year.

Taxpayers are upset about the clumsy process. People are asked to get a challan in three sets, generated at the office of the BBMP's Assistant Revenue Officer (ARO) and take it to any branch of Canara Bank to pay the tax.

Once the payment is made, a copy of the challan should be submitted to the ARO office.
There are instances when tax was paid in cash, but Canara Bank officials asked the taxpayers to collect the receipt seven days later.

Till the previous year, BBMP would hold back receipts only if the tax was paid through cheque. The receipts were given to the property owner after the money was credited into the Palike’s account.

Subhash Shetty, residing in Nagasandra on Tumakuru Road, cited the example of his friend Shivakumar.

He said, “We had to go to three different branches of the Canara Bank to pay the tax as the first two branches expressed their inability to collect it due to the software glitch. We could deposit the tax in cash in the third branch. However, the bank officials could not generate receipt immediately and told us to collect it a week later.”

Shetty too faces difficulties in paying the tax arrears of his industrial unit in Peenya.
He said, “I have to pay the tax with arrears of six years. When I went to pay the tax, Palike officials asked me to wait because the new software is not able to assess the arrears.”

K Nageswar Rao, resident of Arehalli near Chikka Kallasandra, too recalled the difficulties in paying the tax.

“Many members of our residents’ welfare association have not been able to pay the tax so far and are waiting for BBMP to fix the software glitch,” he added.