Kotak Mahindra Bank: RLLR: 0.75 | From: 8.7% - To: 10.5%
Union Bank of India: RLLR: 0.5 | From: 8.5% - To: 10%
Bank of Baroda: RLLR: 0.5 | From: 9.25% - To: 11%
HDFC Bank: RLLR: 0.75 | From: 8.5% - To: 8.8%

Bengaluru intensifies crackdown on property tax evasion with tech-driven audits

#Taxation & Finance News#Residential#India#Karnataka#Bangalore
Last Updated : 30th May, 2025
Synopsis

In a significant move to curb property tax evasion, the Bruhat Bengaluru Mahanagara Palike (BBMP) is set to issue notices to over 400,000 property owners suspected of underreporting property details. Utilizing data from drone surveys, satellite imagery, and the Digitally Owned Number (DON) Survey, BBMP aims to rectify discrepancies in self-declared property information. With a target to collect INR 6,000 crore in property tax for the 2025-26 fiscal year, the civic body anticipates recovering an additional INR 1,000 crore through this initiative.

The Bruhat Bengaluru Mahanagara Palike (BBMP) is preparing to issue notices to over 400,000 property owners suspected of evading property tax by providing inaccurate property details. This action follows a comprehensive analysis based on data from the Digitally Owned Number (DON) Survey.


Despite having over 2 million properties within its jurisdiction, BBMP currently collects just under INR 5,000 crore annually in property tax, which is significantly below potential collections. Officials have observed that many property owners have exploited the self-declaration system by underreporting property sizes to reduce their tax liabilities.

To address this issue, BBMP's revenue department has turned to data collected from drone surveys and Urban Property Ownership Records (UPR), covering details of approximately 1.5 million properties. Additionally, GPS-based photos and data for each property have been collected. These are being cross-referenced with ownership records and supporting documents, including those submitted for e-Khata registration, to identify discrepancies. If mismatches are found-such as undeclared floor space or incorrect height and number of floors-property owners will receive formal notices.

With a target of collecting INR 6,000 crore in property tax for the 2025-26 fiscal year, BBMP is offering a 5% rebate for those who pay their dues by the end of this month. Starting next month, BBMP will begin issuing notices ward-wise to defaulters and long-term evaders. In extreme cases, officials have indicated that properties may even be seized or auctioned.

BBMP is also developing technology that will allow automatic issuance of notices via SMS to the registered mobile numbers of property owners who provided false information on the BBMP property tax portal. Officials have confirmed that around 400,000 such cases have already been identified, and notices will be sent out shortly.

According to BBMP officials, the revenue department has so far identified four lakh properties with incorrect self-declarations. With more under scrutiny, BBMP anticipates recovering an additional INR 1,000 crore in property tax and penalties in the coming months.

By leveraging advanced technologies such as drone surveys and GPS-based data collection, the civic body aims to rectify longstanding issues in property tax declarations. This move not only seeks to boost revenue but also serves as a deterrent against future tax evasion. Property owners are encouraged to ensure accurate reporting to avoid penalties and contribute to the city's development.

Related News

Have something to say? Post your comment

Recent Messages