Bengaluru: BBMP introduces 100% penalty for long-term defaulters

Property taxpayers in Bengaluru must brace for stringent penalties as the Bruhat Bengaluru Mahanagara Palike (BBMP) intensifies its crackdown on tax defaulters. New tax rules set to take effect from April 1 introduce a 100% penalty on outstanding property tax dues if left unpaid for two years.

Also Read: Bengaluru: Property tax defaulters to face 100% penalty, 15% interest from April 1

As per the revised regulations, taxpayers who fail to clear their dues for two consecutive years will face a 100% fine. However, those who miss payments for a single year (2024-25) will only incur a 15% simple interest charge. The 100% penalty will not be imposed for minor delays but will come into effect only after two years of non-payment. For example, if property tax for 2024-25 remains unpaid, the penalty will not apply immediately on April 1, 2025. However, if the tax remains unpaid beyond April 1, 2026, the 100% fine will be levied.

Currently, about 2.5 lakh property owners have not paid their tax dues. The BBMP had targeted a property tax collection of ₹5,210 crore for 2024-25, but so far, ₹4,604 crore (88.36%) has been collected.

Additionally, the BBMP has introduced a one-time settlement (OTS) scheme for government buildings and affiliated institutions under its jurisdiction. This facility, available until March 31, 2025, allows government institutions to clear their outstanding tax dues. From April 2025, entities not availing of OTS will be required to pay double the standard property tax.

The BBMP urges taxpayers to clear their dues promptly to avoid hefty fines and legal consequences as the city strengthens its tax enforcement measures.