Property tax rules notified

January 22, 2009 12:00 am | Updated April 02, 2010 05:23 pm IST

Staff Reporter

Random scrutiny restricted to 10 per cent; block period unchanged

Property owners can now file revised returns

A provision made for paying electronic payment

Bangalore: The final notification on the Bruhat Bangalore Mahanagara Palike (BBMP) Property Tax Rules 2009 is out with some minor changes, like reducing the number of percentage of property tax return for random scrutiny by 5 per cent and making provision to file revised tax return.

The final notification of January 13 issued by the Urban Development Department has retained the block period of three years for revising the property tax structure despite the demand by the people to increase the block period to five years. As per the rules, property owners can file revised returns, if they want, to effect corrections and payment of taxes if any, in a new form applicable to them superscribing on it as “revised return”.

The BBMP officials pointed out that the facility to file revised returns help those who inadvertently commit errors in filing returns.

The provision has been made to pay tax through electronic medium, to be announced by the BBMP Commissioner apart from making payment through cheque/demand drafts/pay orders in case where tax payable is Rs 1,000 or more.

The Government has enhanced the depreciation rate on taxable annual value to 70 per cent depending on the age of the building instead of 50 per cent as proposed in the draft notification.

The percentage of returns to be considered for computerised random scrutiny has been reduced to 10 per cent of the total returns filed in a zone every year from the 15 per cent as proposed in the draft notification.

Advance tax

Meanwhile, taking into consideration that advance property tax was paid by some property owners mainly in the erstwhile city municipal councils for 2008-09, the provision has been made in the Rules to deduct that from the total tax payable.

If the advance tax paid was in excess of total tax to be paid for this year, it will be adjusted in the tax to payable in the subsequent year.

Officials pointed out that there was some confusion last year on acceptance of tax under Capital Value System that existed in CMCs and some people had paid advance tax under CVS.

One more formality

However, property owners who want to pay the tax will have to wait till the BBMP issues final rules for the UAV rates for various zones. Only after that the BBMP will announce the dates for collection of property tax.

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