Now here is an Example
Suppose you have a property in the city that fell into tax Zone E, your tenanted area is 450 sq ft and self occupied area is 950 sq ft then following will be your tax calculation:
Gross Unit Area Value – Rs 22200.00
Depreciation Amount – Rs 5328.00 (the depreciation is of 24 per cent)
Net Unit Area Value – Rs 16872.00
Property Tax – Rs 3374.40
Cess (24 per cent) – Rs 809.86
Total Property Tax – Rs 4184.26
Rebate of 5 per cent – Rs 3975.00 (If paid in full on or before 30 days from the date of notification)
(This example is hypothetical and only for the purpose of explaining the calculations)
Calculations done, but problems remain
For now there won’t be any change in the SAS values and, hence, no increase in the tax amount. But, because of the zone shuffling, a lot of places have jumped higher in their zones, thereby, the rates, henceforth, of that land will be of higher value.
Furthermore, the depreciation allowance is restored up to 70% and reducing the extent of random sampling from the proposed 15% to 10%.
Guidance Value Bandwidth for residential areas (zone wise)
Zone F: Rs 1001
Zone E: Rs 1001- Rs 2000
Zone D: Rs 2001- Rs 3500
Zone C: Rs 3501- Rs 5000
Zone B: Rs 5001- Rs 7000
Zone A: Rs 7001-Rs 9000
Also, one of the major changes made is that the zones have been shuffled. For the calculation of the Unit Area Value of a building (residential/ non-residential), the BBMP had divided the whole city into six major zones (A-F) depending upon the development level in that area and accordingly the rates of properties in that area.
According to some experts in the city, the reshuffling of zones has brought almost 50 per cent of the total properties at least one zone higher than it was earlier. Therefore, most of them now have a higher value of their property than they had earlier.
“What is the use of retaining SAS values if the zones are shuffled? The BBMP has not yet given any reasoning behind the reshuffling of the zones,” complains NS Mukunda, convener of Citizens Action Forum. The forum has been active in getting the property tax rates declared by the BBMP.
In a calculation chart prepared by Mukunda, he points out that if your property has jumped one zone, for example, from B to A, then the percentage variation in the tax you would be paying is 25 per cent. That means you will be paying 25 per cent more . Similarly, if your property has jumped two zones, like from C to A, then the variation would be 38.89 per cent.
So, amidst all the confusion of jumping zones, we shall all pull up our sleeves and start calculating our taxes. Also, not to forget that they can be paid at all the Bangalore One centers in the city. While we all might have to worry about paying more because of jumping zones, lets hope we at least get the rebate by paying it on time.
BBMP links for reference:
Residential property zones:
Non Residential property zones:
BBMP Tax rules (new ordinance):
BBMP Tax Calculator: