Bengaluru: BBMP set to issue 3 lakh notices for property tax under-assessment

The Bruhat Bengaluru Mahanagara Palike (BBMP) is preparing to serve tax notices to approximately 2.5 to 3 lakh property owners for under-assessing their properties under the Self-Assessment Scheme (SAS). The civic body has identified significant discrepancies between declared and actual built-up areas using drone surveys conducted across Bengaluru.

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The survey revealed that nearly one in six of the 20 lakh properties assessed through SAS had misreported their construction details. Common violations include property owners declaring fewer floors than actually constructed. The BBMP intends to recover pending taxes based on the actual extent of the structures, along with applicable penalties for the misreporting.

In a bid to encourage compliance, BBMP may reintroduce a one-time settlement (OTS) scheme, similar to last year’s initiative for tax defaulters. In 2023, about 3.81 lakh defaulters benefited from the scheme, which offered waivers on compound interest and 50% relief on penalties.

SAS, launched in 2008, has faced multiple implementation challenges, including incorrect zonal classifications. In 2022, this led to a flood of complaints from property owners receiving erroneous tax notices.

The latest crackdown is expected to significantly boost BBMP’s revenue as it targets collections of ₹5,700 crore for the 2025-26 fiscal. Officials hope the enforcement drive will enhance accountability and improve compliance with Bengaluru’s property tax regulations.