The Bruhat Bengaluru Mahanagara Palike (BBMP) has found that many property owners, in connivance with officials, have submitted incorrect information about the tax zone under which their property falls in an attempt to pay less tax.
BBMP Commissioner N. Manjunath Prasad told reporters on Tuesday that 3.9 lakh such cases have been detected. The civic body is issuing notices to owners of all these properties. They will have to pay additional tax with penal interest.
Under the Self Assessment Scheme, citizens and officials have the option to indicate the tax zone and compute the property tax. There are six tax zones in BBMP limits.
“Officials have been found to be changing zones to favour some property owners and compute less tax,” said Mr. Prasad.
To prevent this from recurring, the BBMP has adopted a new system under which all properties within its jurisdiction have been mapped with the guidance value. The Department of Stamps and Registration uses guidance value as a baseline to charge stamp duty for property transactions.
“By mapping this information to the BBMP property tax system, we will be able to get the value of each property, which is then used for property tax collection. This way, neither citizens nor officials will be able to change the zones. The system will automatically pop up the zone information,” he added.
The BBMP has identified over one lakh buildings that were being used for commercial purposes though property owners were paying tax claiming use for residential purposes.
Mr. Prasad said notices will be issued to owners of such properties as well, and added that both measures will help augment the BBMP’s property tax collection.