BENGALURU: Bruhat Bengaluru Mahanagara Palike (BBMP) which has been sending SMS to over 6 lakh property tax defaulters, is also sending notices to shops functioning in residential areas to cough up taxes. As per rule, shops and small hotels which are functioning in a residential area should be categorised as ‘commercial’ and should be paying tax as a commercial unit, stated a senior BBMP official. The civic body is exploring all the options to improve property tax collection.
Further, it is serving notices to properties, that have under-assessed their properties and have not declared new additions (additional floors or rooms) and have evaded tax.
“Many of my neighbours have received notices asking them to pay up property tax to the tune of Rs 2 lakh and more. Some property owners have made additions to the buildings by constructing additional floors and others have rented their spaces for commercial purposes. Property owners have been asked to pay up for the differences in the property tax along with cess from the time the additional construction was done. Since then, properties have received commercial electric connection,” said a property owner at Srirampura, which falls under BBMP’s Gandhinagar revenue division.
There are many such property owners who have been served notices by the BBMP to pay up property tax for the units that are being operated as commercial and the differences in property tax assessment along with interest. Fearing action by BBMP, some property tax owners have paid their dues. However, some are waiting for the BBMP to reduce the tax burden as they have to cough up the dues that run in lakhs.
A senior BBMP official said, “Shops take power supply from BESCOM under the commercial category. In the same way, they have to pay taxes as commercial units and not as residential.”