Bangalore property tax is a means to raise revenue from the property owners of the state to provide better infrastructure and elevate living conditions.
Every state levies a certain property tax on all “real” or tangible assets, including commercial, residential and rented out property.
Every year, property owners need to pay their allotted BBMP house tax within the due day. Failure to pay this tax attracts penalty charges on the due amount and imprisonment in some extreme cases.
To avoid such a situation, let’s learn about BBMP tax calculation.
How Is BBMP Tax Calculated?
Different calculation patterns are relevant in India, and Bangalore Municipality follows the Unit Area Value (UAV) system.
Here, the tax amount is determined by the approximate return from a concerned property, which further depends on the property location and the purpose for which it is used.
The formula used to compute the BBMP tax payment amount is mentioned below. Take the help of a BBMP tax calculator to expedite the process.
Property Tax (K)= (G-I)*20% + Applicable Cess (Property’s 24%).
Here, G=Gross Unit Area Value= (A+B+C)
A= let out area of property*property’s per square ft. rate* 10 months.
B= Self-occupied area of property*property’s per square ft. rate* 10 months.
C= Parking area of property*property’s per square ft. rate* 10 months
To simplify this process, follow the steps below.
- Know the necessary details of the property like type, depreciation, value per unit, etc.
- Multiply values of unit area and built-up area and then multiply it by 10.
- Subtract depreciation from this value to derive annual property value.
- Find 20% of the annual value to estimate yearly tax.
- To get Cess, calculate 24% of annual property tax.
- Add Cess and property tax to arrive at total BBMP tax payable.
Use the BBMP property tax calculator to simplify this calculation and get an accurate result.