Karnataka New Property Tax

DK Shivakumar, the Bengaluru urban development minister and deputy chief minister, launched the Karnataka New Property Tax collecting system on Monday. It will go into implementation on April 1, 2024.

The Karnataka New Property Tax collecting mechanism, which will go into effect on April 1, was unveiled by Bengaluru Urban Development Minister and Deputy Chief Minister DK Shivakumar on Monday.

The new approach is meant to streamline and rationalize the taxing process while simultaneously increasing income for Bruhat Bengaluru Mahanagara Palike (BBMP) and the state government.

Karnataka to Increase Property Tax In Urban Areas

On Wednesday, the Karnataka Cabinet resolved to raise property taxes in all municipalities except Bengaluru. This was accomplished when the Karnataka Municipal Corporation Act, 1976 was modified by the Cabinet, which was headed by Chief Minister BS Yediyurappa.

According to reports, the state’s whole residential and commercial real estate is now subject to taxes ranging from 0.3% to 1% of the guideline value; however, the Cabinet has voted to raise that rate to between 0.5% and 1.5%.

Although the property’s capital value is now calculated at 50% of its guiding value for tax purposes, indications indicate that this may soon be reduced to 25% of the guidance value.

Karnataka Property Tax Payment Forms

You have two options for paying the Karnataka Property Tax: offline or online. Currently, there are six different forms utilized to pay taxes. The information is provided below:

Form 1- For properties that have a Property Identification Number (PID), this form is utilized to pay taxes. Ward, street, and plot numbers are combined into a single, 15-digit number that is issued to each property.
Form 2- Katha number attribute. Both the owner and the property are identified by the Katha Number. The Katha certificate has it.
Form 3- When paying taxes on property without a PID or Khata number, use this form.
Form 4- When there are no modifications made to the built-up area, use, or other aspects of the property, a white form is employed.
Form 5- A is a blue form that’s used when information about a property changes. For instance, if a new floor is added, the building is destroyed, and so on.
Form 6 – This form is used to pay service tax in cases when the property is exempt from property tax.

Karnataka Property Tax Payment via Online Method

The citizen must visit the www.karnatakaone.gov.in website to see properties located in urban regions, except Bengaluru.
The user must log in to the website after generating their user ID and password.
“Property Tax Payment Online” should be selected from the list of services offered.
The “Payment of Property Tax” page will be shown when the application has been completed.
Enter the property’s legitimate PID number that the department assigns to each unique client.
As needed, mention the applicant’s information.
Property No., Ward No., Bill No., Mobile No., and Address are all included.
On the radio button, choose “Year.”
It comprises the Amount owed to the client.
From the Pay mode grid, choose the preferred ‘Pay Mode’. Credit cards, debit cards, Paytm, and net banking are the available payment methods.
Select the acceptance of terms and conditions checkbox.
Then choose “Continue for Payment.”
Click “OK” to submit the transaction. The payment gateway will then be shown to the payee. To finish the payment, please enter your card or bank information.

Karnataka Property Tax Calculation Formula

On the Karnataka government website, calculating the property tax is simple. Property Tax in Bangalore is generally calculated as follows: Property Tax (K) (G-1)*20% Cess (24% of property tax)

Here, G, X+Y+Z yields the Gross Unit Value, where:

X-the tenanted area of the Property 10 months per sq ft rate
Y- the self-occupied area of the Property 10 months per sq ft rate
Z-the Vehicle parking area 10 months per sq. ft. rate
1-Depreciation amount
H-percentage of the depreciation rate, which is determined by the building’s age
I-(G*H)/100

Karnataka New Property Tax – New Taxation Rules for Urban Development