Bengaluru corner site owners face double tax burden

BDA’s 2016 slab tax policy forces corner and odd-sized site owners in Bengaluru to pay nearly double property tax, affecting 3,000 plots

Property owners in several Bengaluru Development Authority (BDA) layouts are raising concerns over what they call an unfair tax burden linked to the slab-based vacant land tax policy introduced in 2016. The issue particularly affects corner plots and irregularly shaped sites in layouts such as Nadaprabhu Kempegowda, Banashankari 6th Stage, and Sir M. Visvesvaraya.

Owners argue that even a few extra square metres beyond standard plot sizes are pushing their properties into higher tax slabs. Instead of applying the higher rate only to the excess area, the BDA’s software-driven system calculates the entire plot at the elevated slab rate. This has resulted in some residents paying nearly double the property tax compared to neighbours with similar civic infrastructure.

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Many buyers claim they were not adequately informed about this impact during auctions. Estimates suggest that at least 3,000 parcels are affected, leading to repeated representations to the BDA since 2023. The matter was also discussed with the state finance department in December 2025, but no resolution has yet been announced.

Resident groups are demanding a redesign of the slab system to function more like income tax slabs, where only the marginal portion attracts a higher rate. Officials, however, maintain that they are bound by existing board resolutions and IT system rules, leaving homeowners frustrated and seeking relief.

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