Bengaluru News Updates: The new Amendment bill on property tax relief will benefit a total of 13-15 lakh people in Bengaluru city including 5.51 lakh taxpayers, 5-7 lakh people outside the property tax bracket and 3 lakh partial property taxpayers.
Bengaluru: In a piece of good news for the property owners in Bengaluru, the Karnataka Legislative Assembly has passed a taxpayer-friendly bill on February 20, offering significant relief to the city residents struggling with property tax burdens. Known as the BBMP Amendment Bill 2024, it reduces the penalty on outstanding dues by a whopping 50 per cent, giving relief to citizens with a staggering Rs 2,700 crore.
What DK Shivakumar Said on Property Tax Relief
Giving details, Karnataka Deputy Chief Minister DK Shivakumar said he tabled the tax-payer-friendly Amendment Bill in the Legislative Assembly in the post-lunch session. With the passing of this Amendment Bill, the penalty amount is reduced, saving Bangaloreans a whopping Rs 2,700 crore. Now, the BBMP will be able to collect penalties worth Rs 1000 crore.
It is interesting to note this Amendment bill will benefit a total of 13-15 lakh people in Bengaluru city including 5.51 lakh taxpayers, 5-7 lakh people outside the property tax bracket and 3 lakh partial property taxpayers.
Special Rebate For The Poor
The Amendment Bill has a provision for a special rebate to poor segments of society. However, the government residential buildings and buildings in slums are exempt from property tax penalties. Buildings up to 1,000 square feet that are used for own use are exempt from property tax penalties.
Under the Amendment Bill, residential and mixed-use properties will have to pay property tax penalties only for a maximum period of 5 years irrespective of the default duration. Interest has been waived off for dues beyond five years.
“This is a taxpayer-friendly amendment. We have brought this bill to help the common people, though it is a burden on the government,” said Shivakumar told the Legislative Assembly.
Heavy Penalties On Pending Dues
Earlier, the Bangaloreans had to pay heavy penalties as the previous BJP government had passed the previous amendment bill, which doubled the penalties on property tax dues resulting in a huge burden on the property tax payers. The new amendment passed by the Congress government has reduced the penalty burden on Bangaloreans significantly.
Who Are Exempted From Property Tax
It should be noted that the buildings up to 1,000 square feet which are for own use are exempt from property tax penalties. As part of the Amendment Bill, residential and mixed-use property owners will have to pay property tax penalties only for a maximum period of five years irrespective of the default duration.