Step by step guide to paying property tax

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Here below is the simple, safe and sure declaration of paying property tax.

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1. Purchase an application at the area Revenue office, priced at Rs.5/- one each for different properties (In case of more properties – one for each corporation number)

2. Purchase one Hand Book priced at Rs.20/-

3. Demand an Appendix to hand book (Zone Classifications) of your area.

4. Go through the same calmly and understand the columns.

5. Measure your property in British system (Feet / Inches) – Note down the dimensions.

6. Differentiate the area as per year of construction, if constructed at different periods.

7. Differentiate the area as per the usage – Residential / Non-residential etc. as well as Owner Occupied / Tenanted.

8. Keep your old receipt handy.

9. Keep the copy of the SAS filed in the year 2000 or later. (Do not bother if not available) – You will not be able to claim cap facility without this.

Steps 5 to 7 may be got done by an architect / draftsman if necessary. (The Plan / Sketch will be useful for all future references)

10. Start filling the form as below:

  • Year of Assessment : 2008-09
  • PID No.: Refer to your old receipt and copy the same. The no. will be in three parts e.g. XX-XX-XXX.
  • Personal details of name, occupation, age, et cetera to be filled.
  • Address of the property as per the previous receipt.
  • Postal address for correspondence, if different.
  • Zonal Classifications – Refer to the Appendix bought and fill column 5.
  • Tick the appropriate boxes in column 6a.
  • Write the total area of Site and Built up areas as per your calculations OR given by architect / draftsman.
  • Fill the number corresponding to the type of building as per construction & usage of classification – Residential & Non-residential (Category I to V for Residential and VI to XVIII for Non-residential)
  • Fill in column 8 as per the assessment submitted in the year 2000 OR later (Leave it blank if not available) and the tax paid for the year 2007-08 in split form and the receipt no. in the appropriate column.
  • Calculate the values and fill in column 10 & 11 as applicable. (Calculate depreciation for the completed years as on April 2008 for different portions constructed at different periods as per table given on page no.18 of the booklet)
  • Complete the computation table by calculating 5% rebate if paid in full before 31st March 2009.
  • Prepare / arrange payment and fill in particulars of payment on page 6 of application, affix signature and date.
  • Get the complete application photo-copied and preserve the copy in your file for future reference.
  • Fill both the acknowledgements on pages 7 & 8 of the application before submitting and collect the acknowledgement of page 8 (Containing the application no.) duly signed by the officer receiving the application along with payment.
  • Keep the acknowledgement safe till you receive the PROPER RECEIPT for your payment, then file the same for your record along with the copy of the application.

10% of the applications will be scrutinized and who knows, yours may be one among them! Hence, keep all the documents handy including your calculation sheet for future reference and file your objections if need be at the time of inspection.

In case of inspection by the officers, please sign the check list in form VIII after getting full clarification to the observations made by the officer and in case of non-satisfactory clarification, sign the form with an endorsement to the same effect. It may be signed EITHER by the owner himself OR by the person occupying the premises.


25 Comments

  1. Mr.Sureshkumar,
    The present SAS calculator is based on UAV system and is applicable only from the year 2008-09. Since your area was under Village Panchayat limits till 2007, the tax according to V.P.norms (Tariff) apply and for the period of inclusion in BBMP area, tax according to SAS (CAV/ARV System) prescribed in the year 2000 has to be paid.
    Regarding the official note, it is available in the act, but I dont think you have any need to show it to the ARO, instead demand the ARO for the same, if he claims anything more than the calculated amount.
    An extract of the act regarding this is also available in the hand book on page 7 under FAQ section.
    Regarding your second question, do you have a securable (Protected) parking or is it just a compound where you can park a car ? In the later case, you have to pay tax for the excess vacant land if it exceeds the limit of 3 times the plinth area.

  2. Mr.Vibhor Thomar,
    Your answer lies in your question itself. Land Tax is paid till 2008, i.e. for the year 2007-08 by the builder and the possession certificate is issued on 1st Mar.’08. Hence you are liable to pay the difference in tax for the 2nd half of 2007-08 from the vacant land tax to building tax.

  3. Hello Prakash,

    The information that you provided really helped me a lot. I have one question. I constructed a house in the year 2006. For 2006-07, I paid the tax through a broker (Since i was out of country). However, i have not paid the tax for 2007-08 and 2008-09. For 2008-09, i have filled the UAV form and have arrived at the tac that I need to pay. However for the year 2007-08, I am clueless on which form I need to fill. Also, does that tax calculation belong to UAV or should I follow the SAS-2000 tax calculation? If it is SAS-2000, is there any place where I can get the form and also the tax calculation procedure?

    Thanks for any information in this regard.

    Regards,
    Manju

  4. Dear Mr Prakash,

    I constructed a house in Laughing waters, Ramagondanahalli, earlier in Panchayat but added to Mahadevapura Ward Zone F since 2007.

    I have 2 questions:
    1) I have not paid tax since the construction of house in 2004. I want to pay it now, should i use the SAS calculator and pay with 5%/annum interest till date?. Where can i find official note regarding this so that i can show to my ARO and pay the same.
    2) I have a open parking within my compound should i pay car parking tax for the same.

  5. Hi Dr Prakash ,
    There are 4 blocks in the building 3 are completed . 4th is under construction .Mine is 2nd block and is completed though the completion certificate can be issued only for entire building .
    Registration date is 13/3/2007 ,and possession date is on 1/3/2008 .
    Bulider has paid the land tax till 2008 .
    So in this case should we pay 07-08 property tax ?

    Regards
    Vibhor

  6. Mr.Prashant Acharya,
    Please post your questions on the website rather than posting it to the author, as it helps many others to get enlightened regarding the subject.

    As regards your first question, it is (Rules & Regulations) available on the site http://www.bmponline.org OR in hand book sold for this purpose in a brief explanation. You get it in detail in the rules and regulations of the property tax act, copy of which will be available at legal book dealers OR you may obtain it with the main BBMP(Corporation) Office.

    Regarding your second question about the usage of the building for a part of the financial year, the same conditions apply. If a property is vacant at a particular period, you can declare it as self occupied and get the rebate of 50% of tax.

  7. Mr.vibhor Tomar,
    Regarding your first question, what you have done is right, if you have the relevant document – either the Title Deed or the Plan. You have no quantum specified for it. But the area you have specified should be practically fit in a car. Check whether your dimension meets it.
    Generally the space required for a carpark is more than 120 sft. That may be the reason for the RI to insist you on increasing the dimension.

    Your second question can be answered correctly depending on the content of the registered title deed, possession certificate, tax paid for the construction periods etc. Does it contain as a completed building or under construction ? Is the possession certificate issued by the builder based on the certificate issued by the corporation authorities for the entire apartments ? Has the builder paid tax for the vacant land for those relevant years under construction ?

  8. Hi Dr Prakash ,
    One more query , does the date mentioned on Possession Certificate by the builder holds any relevence in deciding whether we need to pay the tax for that year .
    Or its the registration date of the sale deed which decides your tax payment liability.
    Example: registration date is 13/3/2007 ,and possession date is on 1/3/2008 or 1/4/2008. In this case should the person pay tax for 07-08 ?

  9. Hi Dr Praskash ,
    Thanks for your advice i have paid the tax for 08-09 , but the RI was insisting on the Car Park area to be put as 180 , although my car park area is 112 .
    Is there a rule like that for minimum car park area ?
    But i paid for area what is alloted.
    Regards
    Vibhor

  10. Mr.Prashanth Acharya,
    The year 2008-09 refers to the financial year from April of 2008 to March of 2009. Any construction (Completed) done during the said year attracts tax. If it is completed before September of the referred year, the tax for the entire year and for those completed after October, tax for the half year has to be paid.
    As your house was completed during January 2009, you have to pay an half (Second) yearly tax for the financial year 2008-09 and for the first half, tax for the site has to be paid.

  11. AUTHOR’S NOTE:
    Dear Readers,
    The above guidelines were prepared with the properties of OLD BMP AREA in mind. The Commissioner of BBMP has approved this by publishing the same under his signature, with certain modifications to suit all the properties situated under the new BBMP area, in THE TIMES OF INDIA dated 13th Mar.’09 on page # 11.
    Please make use of the same for properties outside old BMP area.

  12. Mr.Srikantan & Vibhor Tomar,
    For your Q.1, Suvarna Khatha Scheme was introduced (To curb the officials making money for issuing khathas)a couple of years ago, where issue of Khatha was made easy through self declaration forms for the BMP area, and the same may be introduced for the new BBMP area also. The issue of Khatha’s were suspended due to suspension of Registration of properties for quite a long period.
    For Q.2,The tax under CVS system is much higher and was introduced throughout BBMP area excluding old BMP area, where ARV system was running for the block period of 5 years. Now as protests were made regarding the high rate of tax under CVS system, the government has comeout with the new system of UAV, where tax is moderate.
    AS regards the previous years tax is concerned, a penal interest @ 5% per annum is payable for the years prior to 2008-09. For any extra demand by the officials, ask for a notice to be issued to that effect, and if done, you can always refer it to the higher authorities for a clarification. In case of any pressure by the staff, write to the commissioner with the details of the staff.

  13. Mr.H.K.Acharya,
    I have not referred to any “declaration letter” to be submitted. Declaration is being done now for the property you own / made via the form for payment of tax.
    Even if you do not have the copy of the previous tax paid, you can always refer the details of payment and get the details of the receipt from the records at the ARO. If you have paid by cheque, it will be reflecting in your bank statement / pass book, enabling you to collect the details easily.

  14. Hi Mr. D.R.Prakash,
    Thanks very much for the clarification regarding payment of arrears.
    Just one confirmation,
    Since I dont have a receipt of the payment of tax for earlier years, is a “declaration letter” as you have mentioned to that effect, enough?

    with best regards

  15. Hi ,
    I have exactly the same issue as Srikantan .I am living in the Apartment(Doddenekundi area Zone F) 1748sqft tax for 08-09 is 4123/- , tax for 07-08 is 9214/- also the RI at the bbmp contact point (Water Tank AECS Layout) has made it twice(18418/-) since we didnt possess Khata under section 112c-KMC act. On top of this he levied penality and cess is the calculation correct ?
    Regards
    Vibhor

  16. Dear Mr. Parasad,

    Thank you for the response, I shall wait eagerly, for your valuable inputs on the same.

    Regards

  17. Mr.Srikantan,
    Sorry for the delay in responding to you, as I could not go through the net due to power shut downs at my convenient timings.
    The above guidelines were for the properties located in the old BMP area and as yours is a case of the new BBMP area, I will be clarifying your doubts shortly, but the suspension of issuing KATHA was true. Regarding payment of the tax for the previous years as well as the amount has to be clarified which will be done in a couple of days.

  18. I Purchased an apartment in the year 2007, when I had gone to get the katha transferred I was informed that the katha transfers have been temporarily halted and cannot be done until further orders as the area (hormavu) was being moved from village panchayat to BBMP.

    Then on several attempts to have the katha transferred I was informed that the katha transfer is temporarily on hold for various reasons (including local and assembly elections). I got the same answer when I went to pay the tax last year (tax structures are being modified, so tax collection is not happening).

    Today when I went to a CSC to pay the taxes, I was again told that Katha Transfers are on hold for the next three months (until after the parliament elections). I was also told that I have to pay taxes for the year 2007 -2008 (without which I cannot pay the taxes for 2008 – 2009). I am fine with the same. My questions are as follows:

    1. Are katha transfers on hold really, I find it strange that katha transfers have been on hold for 2 years.

    2. The original owner of the apartment I purchased has paid up tax until 2006-2007 to the panchayat at Rs. 2712/- per year. I am told that the tax for the year 2007 – 2008 is Rs. 9850/- (as it was under CVS), while the tax under SAS for 2008 -2009 is Rs. 3944/- …. is this possible?

    Thanks for the assistance!

  19. MR.HAREKRISHNA ACHARYA,
    Your tax for the years 2005 to 2008, for site as well as building are an arrears. It has to be paid as per the norms laid down during the year 1999/2000, when SAS was introduced under ARV system. This due attracts penalty as well as interest, for not disclosing and for late payment.
    As far as the present SAS based on UAV system is to be calculated from the year 2008-09 and will hold good for three years.
    At the special HELP CENTERS created for this purpose, you may submit your declaration along with the tax as per calculation.
    After this special campaign is over, please go over to your area Revenue office and make the payment of the arrears.

  20. MR.A.BALASUBRAMANIAN,
    It is true that they have not given columns for showing the construction at different stages in Part II, but it is being reflected in Part I, 7)a. Hence you have to calculate on a separate piece of paper OR at the space provided on page # 8 and have to be submitted.

  21. Hi,

    I bought vacant land and then constructed a house on that.
    It was vacant for a year (2005-2006) and hence I need to pay land tax for that year.
    From the next year till now, I need to pay property tax (2006-2009).

    My previous owner had paid the tax till 2005 but I cannot trace the reciept given by him.
    How should I go about filling SAS?
    Is SAS only for 2008-09?

  22. I am an original allottee of Site and I have built Ground Portion in 1983 and added First Floor in 2003. I have been allotted PID also. Both are under our occupation and duly assessed for Property tax. But while filling up the Assessment for 2008-09 I do not find any column for giving details of different Depreciation applicable for different period of construction under Part II Col:10 (vii). Should I attach a work sheet for the same with the Form?
    Thanks.

  23. Mr.M.Ramachandran,
    Both of you are right in certain interpretations. For being proper, you have to verify whether any tax is being paid by either the association / management etc. for the common area OR not.
    If there is a payment made similar to that, your president is correct. If not, you are correct.
    Another way to findout whether the salable area is inclusive of common area, you can take the actual measurement of your portion and compare it with the title deed.
    On the whole, what the corporation expects from the citizens is that all covered / usable areas have to shell out tax for its revenue.

  24. Sir, I have an apartment in a multilevel building and the sale deed describe B shedule as ” Propery unit No: 48 in Block B on the second floor apartment No:202 in the building measuring 137.36 Sq mt ( 1478 sft)of saleable area containing 3 bed rooms with Car Parking space No: P-6202 in the stilt contained in the complex known as SHIVARANJANI to be constructed on the A shedule property as per specification agreed” I have, even paid the property tax for 2008-2009 at Bangalore One on 9th May 2008. The amount was assesed in 2002-2003 and have been paying the same amount since then.
    Now as per the FAQ published I have to deduct the actual car park area from the saleable area and and calculate on the basis of revised Zonal classification ( from F to D, but to be taken as E) @ Rs.1.20 for the residence area and Rs.0.60 for the car park area to get the UAV and proceed to arrive at the actual property tax.
    Am I correct?

    The president of my Apartment Owners Welfare Association feel that we should actual measurement of the residential area and car park area.

    Being an apartment complex the “saleable area includes common area’s on each level, ground floor portico, lifts, etc.On the FAQ published it is clearly stated that we should adhere to “saleable area” and not any other which might bring arguments with the taxpayer and the person from BBMP coming to check the correctness of the SAS form that we filled.

    There are thousands of apartments in Bengaluru and it would be beneficial to all if you clarify this matter.

    Thanks

  25. Dear Readers,

    I the author and the President of the Osborne Road Area Residents Welfare Association wish to inform you that, a list of HELP CENTRES have been published in THE TIMES OF INDIA on 10th February, comprising of the location, areas covered and the person incharge in 6 pages. Please make use of it for an easy procurement of application forms and payment of taxes.

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