Bengaluru owners seek relief on Rs 70L property tax arrears

Bengaluru: Up to Rs 70 lakh in arrears: Some property owners in Bengaluru are in a shock after the city’s five municipal corporations served them notices for under-declaration of property tax. Nearly 10,000 properties have been flagged so far with the help of GIS mapping and drone imagery.

While property tax is reassessed based on differences in built-up area and usage, it is the addition of 26% cess, penalty equal to the evaded amount and accumulated interest that has ballooned the tax demand into lakhs of rupees.

Affected property owners want the state government to offer relief, describing the notices as “harassment”. 

As the financial year is coming to an end, civic officials have undertaken a technology-led verification drive where the self-assessed property tax declarations are compared with data generated through GIS surveys, GPS mapping and spot inspections.

Authorities said that discrepancies in built-up area, property use, zonal classification and category, spotted during the exercise, led to reassessments.

Property owners, however, alleged the calculations were flawed. Niranjan, a resident of south Bengaluru, said he was stunned to receive notices demanding a total of Rs 70 lakh for the last nine years. He alleged that while the corporation considered the site measurement, it ignored mandatory setbacks.

“Even the zonal classification appears questionable. There are mistakes in the demand notice but I am unable to file objections online,” he said.

“After completing 75% of the data entry, the website goes blank when I try to select the assessment year,” he added, urging the corporation to set up a helpdesk or appoint designated officials at ARO offices to assist residents.

Another resident, from Jayanagar, said he received a message citing a mismatch between the declared area and measurements identified through drone imagery. “The demand runs into lakhs. The last time such notices were issued, the BBMP had allowed property owners to pay only the differential amount without penalty and interest. Similar relief should be extended now,” he said.

Munish Moudgil, Special Commissioner (Revenue), Greater Bengaluru Authority (GBA), said property owners could file objections in case of errors.

“We are, however, not planning a one-time settlement scheme immediately, as it requires the government’s approval,” he said.

The final demand notices require property owners to show cause within 15 days as to why the reassessment should not be confirmed. Affected residents say the time is too short. 

Former councillor Padmanabh Reddy urged the government to handle enforcement with sensitivity.

“For the corporation, these are mere numbers. For residents, even Rs 10,000 is a burden. Waiving penalty and interest would prevent unnecessary hardship,” he said. 

Quote - The demand runs into lakhs. The last time such notices were issued the BBMP had allowed property owners to pay only the differential amount without penalty and interest. Similar relief should be extended now.

A Jayanagar resident