Bengaluru residents protest new 50% deposit rule for tax appeals

Bengaluru: Thousands of property owners in Bengaluru have been receiving notices from the city corporations demanding payment of property tax dues, including arrears of penalty, cess, and interest, for five years starting 2020-21. As initial show-cause notices are now being converted into demand notices, citizens have been taken aback by the conditions imposed for filing appeals.

Greater Bengaluru Authority (GBA) argues that 23,000 property owners underreported their built-up area while paying property tax under the self-assessment scheme. These properties were reassessed using drone surveys, which estimated a greater taxable area.

Citizens have been given the option to challenge the new assessment. However, they are now being asked to pay 50% of the tax dues for the corporations to entertain their appeals.

BC Sheshadri, a senior citizen living in JP Nagar, said this might amount to Rs 50,000 or more for some residents. “My sister, who lives in JP Nagar 1st Phase, has received the demand notice even after replying to the show-cause notice which she received in Feb,” he said, adding that the senior citizen lives on the family pension of her late husband. “We requested officials to arrange an inspection to determine the right area, but have not received any response so far. There was no physical assessment done to verify the drone survey either. The corporation is now demanding over Rs 1 lakh,” he added.

Another senior citizen, living in JP Nagar II Phase, said he received the show-cause notice in Feb and sent a reply. “We made small changes to our house, but declared all those changes as and when we made them. We have one room on the second floor, and have placed sheets on the rest of the roof. The drone might have considered this as additional area,” he said, adding that no officials from the corporation visited his house for verification.

“I have not yet received a response to my appeal,” he said. The resident, however, has not received a demand notice yet.

‘OTS for defaulters, penalty for taxpayers’

Some residents pointed out that the erstwhile BBMP had offered a one-time settlement (OTS) scheme for property tax defaulters, but is now penalising honest taxpayers and accusing them of tax evasion.

“The corporation is sending a demand notice after a few months, seeking double the difference amount along with a 24% interest component. Meanwhile, it has accepted property tax based on self-assessment for 2026-27 as well, without revising the tax amount according to their assessment. I think this is a way of fooling the public,” Vidyaranyapura resident Ravi Krishnamurthy, also a senior citizen, said.

No clarity on refund of 50% deposit

GBA special commissioner (revenue) Munish Moudgil said a majority of those who have been served notices are actually liable to pay. “Citizens have an option to prove that their assessment is right. Those issued show-cause notices had 3-4 months to appeal. Between 7,000 and 8,000 people appealed and we have left them out,” he said.

“The owner can pay 50% of the dues and challenge the notice. If the owner is able to convince the revenue officials, the notice will be withdrawn. The money paid will be refunded or adjusted against any liability. The option of refunding or adjusting the amount collected rests with the corporations,” he added.