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

The Bruhat Bengaluru Mahanagara Palike (BBMP) has ramped up efforts to collect pending property taxes before the financial year ends on March 31. Special Commissioner for Revenue Munish Moudgil directed zonal officers to prioritize tax recovery across the city, urging officials to visit businesses and establishments with significant dues.

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BBMP set a target of ₹5,210 crore for property tax collection in the 2024-25 fiscal year and has so far collected ₹4,604 crore, reaching 88.4% of the goal. Yelahanka has nearly achieved its target of ₹445 crore.

From April 1, defaulters will face a penalty equal to their pending tax amount, along with an annual interest of up to 15%. The Karnataka government had amended the BBMP Act last year, capping the penalty at ₹100 per ₹100 of unpaid tax for one year as temporary relief. However, this relaxation expires on March 31.

To recover dues, BBMP has begun strict enforcement measures, including property seizures and auctions. Taxes pending from 2022-23 or earlier will accrue a 9% annual interest, while dues from 2023-24 will face a 15% charge. The same rate will apply to unpaid amounts from April 2024 onward.

With over 1.82 lakh properties in default, Mahadevapura, East, and South zones have the highest number of defaulters. Officials have urged property owners to clear dues before the deadline to avoid financial penalties.