Is BBMP Offering One-Time Settlement For Property Tax Defaulters?

The Bruhat Bengaluru Mahanagara Palike (BBMP) will offer defaulters the option of a One-Time Settlement (OTS) scheme for the collection of dues within its jurisdiction. According to a recent notification, penalties under the BBMP Act, 2020, will be equivalent to the amount of tax evaded.

A 25% penalty (on tax evaded) will be imposed on residential properties with tiled or sheet roofs (non-RCC), not exceeding 1,000 sq. ft. for personal use, and having a ground floor.

Moreover, no penalty will be applicable to slums and government housing for the underprivileged, as well as houses smaller than 300 square feet for personal use within residential properties designated as slums by the Karnataka Slum Development Board or BBMP.

Additionally, the notification mentioned that interest on evaded tax, assets not subject to property tax, and properties outside the purview of tax have been exempted.

This decision was taken following a Cabinet meeting on February 15, and the orders will remain in effect until July 31, 2024.