The Bengaluru city administration has announced the extension of the 5% rebate on property tax until the end of July 2024, offering property owners an extended opportunity to benefit from this incentive. Anticipating the enforcement of the model code of conduct, the BBMP issued a circular confirming the extension of the rebate until the last working day in July.
The decision, based on Section 144 (8) of the BBMP Act 2020, aims to encourage property owners to fulfill their tax obligations early in the financial year. Notably, the administration may persist with the self-assessment scheme for property tax calculation, as the state government is yet to finalize the implementation of the guidance value-based property tax system announced recently. This delay comes in the wake of concerns raised by residents, political parties, and traders regarding the potential significant increase in annual taxes under the new system.
In addition, the BBMP introduced a new scheme allowing property owners to make tax payments prior to obtaining the khata certificate, with the initiative set to launch on March 20. Looking ahead, the BBMP has set a property tax target of Rs 3,800 crore for the 2024-25 fiscal year.