Bengaluru: A recent survey has revealed that over 75% of the 350 high-rises that the Bruhat Bengaluru Mahanagara Palike (BBMP) issued OC in the last three years (since 2015) are yet to be brought under the tax net.
“A conservative estimate puts the loss of revenue at around Rs. 200 crore and exclusion of around 25,000 units from the tax net. In many cases, taxes fixed is much lower than the prescribed slabs,” said M.K. Gunashekhar, chairman, Standing Committee on Taxation and Finance, BBMP, who conducted a random sampling survey.
BBMP Commissioner N. Manjunath Prasad conceded that there had been a laxity in fixing property tax, giving individual khatas for the flats and bringing them under tax net.
“The survey has revealed that most of the violations have been in Mahadevapura Zone. We have been conducting khata melas to sort out this backlog and will take stern action against erring officials,” he said.
However, he added that the Rs. 200-crore loss of revenue could be recouped as property tax notices can be issued from the date of issuance of OC or electricity connection for the flat, whichever is earlier.
“Once the survey is complete, we will raise demand notices for the properties from the OC date and collect the tax due,” he said.
Siddaiah, a member of the committee, said that the committee had written to BBMP proposing a private study of suppression and evasion of property tax in a random sampling of wards in the city, to gauge the potential suppression in the city. “If we are given the inquiry into the tax suppression of these high rises, we will look into it,” he said.
