The second amendment to The Bruhat Bengaluru Mahanagara Palike Act, 2024, which was notified on January 10, 2025, allows tax payers to carry out upward revision voluntarily, which is seen as a move to boost tax collection.
The BBMP (Second Amendment) Act, 2024, received the Governor’s assent thus bringing significant changes to property tax regulations under the BBMP Act, 2020 (Karnataka Act 53 of 2020). The Act, enacted by the Karnataka State Legislature, comes into effect retrospectively from September 24, 2024.
Revision of property tax
A notable provision added to Section 144 allows property owners to voluntarily revise their tax returns upward, resulting in additional tax payments. Earlier, the revision was done by the BBMP.
The amendment stipulates that such revisions will attract the same interest and penalties as those imposed by the BBMP under sub-section (15). This ensures uniform treatment of tax adjustments while empowering taxpayers to correct discrepancies independently.
Relaxations for tax defaulters and unassessed properties
The Act provides significant relief to tax defaulters, unassessed properties, and properties requiring reassessment. Payments made before November 30, 2024, will benefit following a nominal penalty of ₹100 per year for unpaid taxes and complete waiver of interest on outstanding amounts.
Properties that previously availed of these benefits under the earlier ordinance are also eligible for the new relaxations. Any excess penalties paid earlier will be adjusted against future tax demands by the corporation.
