NOTE: For 2011-12, BBMP has added Solid Waste Management (SWM) Cess to Property Tax. To know the rates applicable to you, please refer to this FAQ or use this calculator. This cess needs to be added to the total property tax calculated below (after deducting 5% rebate if paid before May 30). The rebate is not applicable to SWM cess.
Calculation of Property Tax has always been a very complicated process for a lot of people, similar to filing one’s IT returns. The maze of numbers and formulas can leave one bewildered!
So here’s my small effort to simplify and explain the process of calculating your Property Tax, and also paying it!
Note that the calculations are as per the Self Assessment Scheme (SAS) currently used by the BBMP in Bangalore. Also note that, although the information is generic, the calculations are specific to flats (since I’m staying in a flat!).
To calculate your Property Tax, you need the following information beforehand:
1. Zone in which your apartment/flat lies. For this, you need to refer to this link on the BBMP website.
2. Total Built-up Area of your apartment. This should be specified in your apartment’s Sale Deed. If not, you can calculate it from your apartment’s floor plan. Some Sale Deeds only mention the Super Built-up Area (which may include the car park area), so you can use that (after subtracting the car park area, if applicable). It’s better to clarify this while purchasing the apartment.
The Built-up Area includes the Carpet Area of your house plus the area occupied by the walls. Note that this is different from Super Built-up Area, which includes your share of the common areas too (gym, garden, club house, etc.). See this link to understand the difference and to calculate the Built-up Area.
3. Total car parking area allotted to you. If you do not know this figure (or it is not specified in your Sale Deed), then you can put in a rough figure of 150 sq. ft.
4. Year of construction of apartment. This is the year in which construction of the property was completed. The builder or your neighbours can provide you this information.
For the purpose of this calculation, I will assume:
- Zone as D (my zone!)
- Built-up Area of the apartment as 1400 sq. ft.
- Car parking area as 150 sq. ft.
- Completely self-occupied apartment (i.e. entire 1400 sq. ft. is occupied by my family, and no part is let out to tenants.)
We will use the following variables:
D = (Tenanted area of apartment) x (Rate per sq. ft. of tenanted apartment area) x 10 (months)
E = (Self-occupied area of apartment) x (Rate per sq. ft. of self-occupied apartment area) x 10 (months)
F = (Car park area) x (Rate per sq. ft. of car park area) x 10 (months)
G = Gross Unit Area Value (GUAV)
H = Rate of depreciation in %
I = Depreciation amount
J = Net Unit Area Value (NUAV) of apartment after depreciation
K = Property Tax
The rate per sq. ft. of tenanted/self-occupied apartment area and car park area depends on your Zone. You can get it from Annexure I of the BBMP Property Tax Handbook.
Depreciation rate for your apartment depends on the age of your apartment. You can get the applicable rate from Annexure III of the Property Tax Handbook.
As per Annexure I, for Zone D the rates per sq. ft. are Rs. 3.20 per sq. ft. (tenanted aptt.), Rs. 1.60 per sq. ft. (self-occupied aptt.) and Rs. 0.80 per sq. ft. (car park area) respectively.
Also, since my apartment is less than 3 years old, the depreciation rate is 3% as per Annexure III.
The formula is:
G = (D + E + F)
I = (G x H) / 100
J = G – I
K = J x 20%
For my case:
D = 0 x 3.20 x 10 = 0 (0 because no portion of the house is tenanted)
E = 1400 x 1.60 x 10 = 22,400
F = 150 x 0.80 x 10 = 1,200
G = (D + E + F) = 0 + 22,400 + 1,200 = 23,600
I = (G x H) / 100 = (23,600 x 3) / 100 = 708
J = G – I = 23,600 – 708 = 22,892
K = J x 20% = 22,892 x (20 / 100) = Rs. 4,578.40
So, our basic Property Tax is Rs. 4,578.40. But wait, that’s not all! On this figure, you have to shell out a cess of 24% (refer to Annexure I of the Handbook again).
That comes to 4,578.40 x (24 / 100) = Rs. 1,098.82
Hence, total Property Tax payable is 4,578.40 + 1,098.82 = Rs. 5,677.22.
Note that, on this figure, you get a rebate of 5% if you pay on or before May 30, 2010.
Also, if you don’t pay the Property Tax on time, there is a penalty of 2% per month on the total Property Tax payable.
You can perform the same calculation online using BBMP’s Online Property Tax Calculator. Select “Residential & Vacant Land Calculator” for residential areas (flats or plots). See the image below for how it looks:
For payment of Property Tax, you have to use either Form IV or Form V. Form IV should be used if there is no change in the details from last year (i.e. no change in Built-up Area, no change in self-occupied/tenanted status, etc.). If there is any change in details, you must use Form V.
So if you have purchased the apartment from builder/another person, given it on rent, stopped renting it, or constructed additional area in the house, in the current year, then you must use Form V. Otherwise Form IV is sufficient.
Online payment of Property Tax for 2009-10 and 2010-11 can be done on the BBMP SAS website. Note that you will need the Application No. of the 2008-09 SAS Property Tax paid receipt. If someone else has paid it, they can give you the details.
Payments can also be made at the BBMP Citizen Service Centres (click here for the list), as well as Bangalore One outlets.
Note that if you have purchased the apartment in the current year, it is advisable to pay it at the BBMP Citizen Service Centre, as the online form does not allow change in name of the owner.