5 lakh properties in Bengaluru under BBMP scanner for tax evasion, misuse of SAS

Bengaluru

About 5 lakh properties have come under the scanner of the Bruhat Bengaluru Mahanagara Palike (BBMP) for evading tax by misusing the Self Assessment Scheme (SAS). The BBMP will soon start issuing notices to collect the arrears. 

The BBMP’s e-khata system has helped flag these properties where owners have deliberately under-evaluated the size of the properties to pay less tax to the civic body. The BBMP launched the e-khata system on October 1, 2024. As part of the same BBMP digitied property records of nearly 23 lakh properties in the city. 

As part of the e-khata process, BBMP mandates submission of the sale deed, which has created an opportunity to detect under-assessed properties within the existing SAS. Under SAS, property owners self-declare the built-up area and pay taxes accordingly—a process often misused to reduce tax liabilities by underreporting property size.

BBMP Special Commissioner (Revenue) Munish Moudgil talking to BLR.POST said “the revenue department through e-khata system has found 5 lakh under-evaluated properties and in about four months we will start issuing notices.” This means such property owners will have to pay arrears and declare the actual extent of the land/property. The BBMP has yet to calculate the amount of leak caused due to these properties. 

The officer said the BBMP is making necessary preparations to issue notices and it also requires manpower. The revenue workers will also be visiting the sites to verify underreporting. 

However, as a sample, the BBMP randomly chose 26,000 properties and analysed sale deeds with SAS declaration. With this the civic body has uncovered ₹100 crore leakage of tax. This indicates that more than ₹1000 crore has not been paid by the owners of 5 lakh properties.

Also read: (BBMP uncovers ₹100 crore property tax leak using e-khata system)

If fixed, this will boost the revenue of the civic body which has already collected ₹2,881 crore in property tax till June 29, achieving 45.25% of its ₹6,256 crore target for this financial year. This marks a 67.73% increase over the ₹1,696 crore collected during the same period last year. 

For more Bengaluru news developments click here