BENGALURU, 23 FEB

State government has announced a 'one-time settlement' (OTS) initiative for property tax defaulters in Bengaluru, providing relief for overdue payments under the jurisdiction of the Bruhat Bengaluru Mahanagara Palike (BBMP). The OTS requires payment of outstanding tax amounts along with accrued interest and penalties for tax evasion.

According to the directive issued by HS Shivakumar, the under-secretary to the Urban Development Department, residential properties with tiled or sheet roofs (non-RCC) not exceeding 1,000 sq ft for personal use and having only a ground floor will face a penalty of 25 per cent on evaded taxes.

However, certain exceptions apply, as there will be no penalties imposed on slums, government housing facilities for the economically disadvantaged, and residences smaller than 300 square feet declared as slums by the Karnataka Slum Development Board or BBMP.

The notification will remain in effect until 31 July of this year. Additionally, the BBMP (Amendment) Act, 2024, recently passed by the Legislative Assembly, aims to slash penalties for property tax violations in Bengaluru by nearly half. Penalties will now be applicable for a maximum of five years, with interest waived for dues beyond this period.

Deputy Chief Minister and Bengaluru Development Minister D K Shivakumar hailed the passing of the bill, estimating that it would save Bangaloreans Rs 2,700 crore in penalties. The BBMP is expected to recover penalties worth Rs 1,000 crore as a result of these measures.