Property owners in Bengaluru must settle their outstanding property tax with the Bruhat Bengaluru Mahanagara Palike (BBMP) by tomorrow to avoid penalties and interest. The BBMP’s One-Time Settlement (OTS) scheme allows taxpayers to clear their dues without penalties if paid by July 31.
Under the OTS scheme, those who settle their property tax arrears by July 31 will not face any penalties or interest. However, from August 1, property owners who fail to pay will incur a 100% penalty on their tax arrears and interest ranging from 9% to 15% on the outstanding amount. This policy is part of a new tax regulation introduced after amending the BBMP Act in the last budget session.
For instance, a property owner with Rs 10,000 in pending taxes will face a Rs 20,000 penalty plus 9% to 15% interest on the total outstanding balance if not paid by the deadline. Additionally, the BBMP will issue three notices to defaulters starting August 1, with potential actions including property confiscation, bank account seizure, and even auctioning properties to recover dues. BBMP Commissioner Tushar Girinath has urged property owners to pay their taxes promptly to avoid these severe consequences.
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