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BDA Property Tax Explained

Last Modified: 14 Apr 2023

Living in Bangalore is a dream for many because of its ambient weather and Instagram- worthy places. But do you know what is property tax in this mesmerising city? If you own a residential or commercial property or are looking to purchase one in Bangalore, then you must pay the annual BDA Property Tax to the Bangalore Development Authority, which is the municipal corporation of the state. In this blog, we will cover all the essential details that you should know about property tax in Bangalore.

What is BDA Property Tax?

The Bangalore Development Authority or BDA was formed to develop the city phase-wise with great infrastructure and cater to the underprivileged sections of the society with its housing schemes. 

Property tax is a critical source of revenue for the BDA, and the organisation has implemented various measures to streamline the property valuation, assessment, and collection process.

If you’re a first-time property owner and wondering what is property tax, it is a tax that property owners must pay to the government. The amount of property tax that a property owner must pay is based on the property’s value, including the plotted land. The BDA calculates the property tax by assessing the property’s value and multiplying it by the tax rate published by the respective jurisdiction.

Also read: Property registration charges in Bangalore

Who Is To Pay The BDA Tax Payment?

Owning a property, whether commercial or residential, under the jurisdiction of BDA makes you liable to pay BDA property tax. You should also note that if you rent out a property, then as the property owner, you are not allowed to collect the BDA tax payment from your tenant. Only the owner can pay the BDA property tax. 

The BDA does not collect taxes directly from individuals or businesses. Rather, the property tax in Bangalore is collected by the Bruhat Bengaluru Mahanagara Palike (BBMP), the municipal corporation of Bangalore responsible for the administration and governance of the city. The BBMP issues a demand notice to the property owners, which specifies the amount of tax due and the due date for payment. The property owner can make the payment either online or offline, depending on their preference.

All property owners in Bangalore, including individuals, companies, and organisations, are liable to pay property taxes to the BBMP. To pay property taxes, property owners can visit the BDA website and use the online payment portal or visit a designated payment centre.

How To Calculate BDA Property Tax?

The BDA property tax is calculated based on the Annual Value of the property. The Annual Value is the amount for which the property could have been rented out. The BDA determines the Annual Value based on the location, size, and age of the property. The BDA also takes into account any improvements or modifications made to the property.

To determine BDA property tax, the following calculation is used along with the gross unit valuation, total area of the property (including self-occupied and leased spaces), parking spaces, and annual depreciation.

BDA property tax = Gross Unit Area Value – (Gross Unit Area Value x Depreciation Rate / 100) x 20% = 24% Cess Tax 

The tax rate for BDA property tax is determined by the government. The tax rate is based on the location of the property, the type of property, and the purpose for which the property is used. For example, the tax rate for commercial properties is higher than the tax rate for residential properties.

The BDA has a system of self-assessment for property tax. Property owners can assess the value of their property and calculate the property tax using the self-assessment system. This system has made the process of property tax assessment more transparent and efficient.

How to pay BDA property tax online?

The BDA has implemented various measures to make the process of property tax assessment and collection more efficient. It has also introduced several options for online payment of property tax in Bangalore.  Property owners can pay BDA property tax online using the BDA website or through the online payment portals of various banks.

So let us run through the steps of how exactly you can make online payment of property tax in Bangalore. 

  1. Visit the BDA property tax payment portal at https://propertytax.bdabangalore.org/
  2. Enter your Property Number and Owner’s full name as mentioned in the property registration records.
  3. Enter your phone number and email address from which you had registered, and agree to the terms and conditions before clicking on the submit button.
  4. Enter the OTP that you received on your phone number.
  5. You will be taken to a payment gateway where you can pay BDA property tax online using a debit or a credit card.

Property Tax Rebate By BDA

Property owners who make the yearly BDA tax payment in full amount before 30th May are eligible for a 5% property tax rebate.

BDA Property Tax Penalty

If the property owner fails to make the BDA tax payment on time, then a penalty of 2% per month or 14% annually is applied to the net payable amount. The authority accepts payment in both online and offline modes.

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