Bengaluru: BBMP can waive penalty on tax request | Bangalore News

BENGALURU: In a damage control exercise, the Bruhat Bengaluru Mahanagara Palike (BBMP) is considering waiving the penalty and interest component on the tax claim it had raised against thousands of landowners, alleging that they had failed zonal reclassification not taken into account when paying the tax.
The move comes after the Palike came under fire for serving notices on some 78,000 landowners accused of paying lower property taxes than they were supposed to give for four assessment years from 2016-17 to 2019-2020. . Claiming that homeowners chose the wrong area to pay tax, the civic agency imposed double the amount of the difference as a penalty and 24% interest per year.
As owners cry foul that they were never told of the zone reclassification, BBMP officials are now in the process of correcting their course. “There was a lack of communication which created confusion. We are exploring ways to ensure that landowners are not burdened with undue penalties and interest, ”BBMP administrator Rakesh Singh said.
In accordance with the Self-Assessment System (SAS) deployed in 2000, properties are classified into eight value zones, based on the published indicative value of the locality or street and the property tax rate is set in result. Zone A attracts the highest tax rate, while Zone F is in the lower slab. If a landlord wrongly chooses a lower area, they must pay double the amount of the difference and 2% interest.
As per the rules, BBMP is mandated to reclassify areas and revise rates once every three years (block period) since property values ​​are subject to fluctuations based on changes in rental rates and indicative value current. BBMP reclassified the zones in 2008-09 and again in 2016-17.
“In the first place, the Palike itself violated the standards of the blocking period by not reclassifying the zones. He also did not communicate on the latest reclassification of areas to the landowners and they promptly paid taxes based on the previous classification, ”said former Mayor and Congressman MLC PR Ramesh.
“After receiving complaints and grievances from many owners, we referred the matter to the administrator. He is studying the issue, ”BBMP Chief Commissioner Gaurav Gupta said.

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