Pay property tax in time or shell out fine

Pay property tax in time or shell out fine
By Satish Shile,DH News Service,Bangalore:
The Bruhat Bangalore Mahanagara Palike (BBMP) has now adopted the Capital Value System (CVS) to assess property tax.

Bangaloreans, get ready to pay property tax on time. Else, you will have to cough up more money as beginning from the next financial year, any delay in paying property tax will attract a hefty penalty.

The Bruhat Bangalore Mahanagara Palike (BBMP) has now adopted the Capital Value System (CVS) to assess property tax.

While new buildings that have come up since October 2007 are already being assessed under the CVS, the rest will come under the new tax system from 2008-09.

Till recently, the Palike was following Annual Rental Value (ARV) system. Barring the erstwhile BMP, all other urban local bodies had switched over to the CVS in 2002.

The then elected body of the BMP had been deferring the adoption of CVS from 2005-06. The creation of Greater Bangalore further delayed the switchover.

Liberal approach

The Palike had been liberal in its approach to property tax as the emphasis was on increasing the collection. The tax had to be paid in two instalments and the last date for payment was October 30.

The penalty on any delayed payment was fixed at 5 per cent of the total tax per year.
However, the Palike has now advanced the last date for payment, with any delay inviting a higher penalty.