Custody of records

The Chief Commissioner shall be responsible for the custody of all records of the corporation including all papers and documents connected with the proceedings of the corporation, the standing committee and other committees. (6) The Bruhat Bengaluru Mahanagara Palike may levy and collect the property tax from every building, vacant land or both including a building constructed in violation of the provisions of building byelaw or in an unauthorized layout or in a revenue land or from a building occupied without issuance of occupancy or completion certificate except the building constructed illegally in Government land, land belonging to any local body, any statutory body or an organization owned or controlled by the Government. The property tax collected from such building shall be maintained in a separate register: Provided that levy and collection of property tax under this sub-section from such building does not confer any right to regularise violation made, or title, ownership or legal status to such building. Such buildings shall always be liable for any action for violation of law in accordance with the provisions of this Act or any other law. (7) The property tax payable shall be reduced by fifty percent in respect of a self occupied building used for residential purpose and such class of self occupied nonresidential building as may be notified by the Government on the recommendation of the Corporation. (8) The person primarily liable to pay the property tax, shall pay the tax in two equal instalments through demand draft or E-Payment. The first being before 30th May and second by 29th November of each financial year. However, the owner or occupier or person primarily liable to pay property tax may choose to pay in one installment: Provided that if the owner or occupier who is liable to pay property tax files return and also pays property tax for the whole year, within one month from the date of commencement of each year he shall be allowed a rebate of five per cent on the tax payable by him: Provided further that the Government may on the recommendation of the Corporation by notification extend the time limit for payment of property tax without penalty and for the benefit of Five percent rebate in respect of any financial year. Provided also that, the person primarily liable to pay the property tax may, at any time subsequent to filing of the return and payment of the property tax, suo-motu revise his own return upwards thereby resulting in more property tax payment to the Corporation, the said revision shall be liable to the same interest and penalty as is applicable for the revision done under sub-section (15) by the Corporation. The revised return shall be treated as the return by the property tax payer and the Corporation reserves the right to revise it under sub-section (15). (9) Before any owner or occupier submits any return under sub-section (7), he shall pay in advance half-yearly tax calculated or the full amount of the property tax payable by him for the year on the basis of such return declared by him as being true and complete. (10) Notwithstanding anything contained in this Act the Government may prescribe the form and the manner in which every owner or occupier who is liable to pay the property tax under this Act shall submit a return every year to the Chief Commissioner, Bruhat Bengaluru Mahanagara Palike or to the officer or agency authorized by him in this behalf. (11) In order to facilitate filing of return by an owner or occupier of any building or vacant land or both and assessment of property tax under this section, the Chief Commissioner shall from time to time issue guidelines for determining the property tax payable thereon. (12) Every return filed by a owner or occupier of a residential building other than commercial building shall be deemed to have been assessed to tax except in cases where the Chief Commissioner or authorised officer may take-up or authorise subordinate officers of not less than ten percent of the cases for scrutiny of the returns filed in the manner prescribed: Provided that, the Chief Commissioner may suo moto or otherwise has reason to believe that there is an evasion of tax by the owner or occupier, he may cause inspection of such building and assess the tax. (13) For the purpose of scrutiny of the return filed or in cases where returns are not filed as required under sub-section (7) in respect of any buildings or lands or both, the Chief Commissioner or any person authorized by him in this behalf may enter, inspect, survey or measure any land or building after giving notice to the owner or occupier and the owner or occupier shall be bound to furnish necessary information required and based on such inspection and information collected, he shall assess the property tax subject to sub-section (5) and send a copy of the order of assessment to the owner or occupier concerned. Such entry into and upon any building or vacant land shall be made between sunrise and sunset. (14) If the occupier of the property, refuses to allow the authorised officer to enter to inspect the premises, the officer after giving reasonable opportunity shall record the refusal and shall proceed to assess the property to the best of his judgement: Provided that in the case of buildings used as human dwelling due regard shall be paid to the social and religious customs of the occupiers and no apartment in the actual occupancy of a woman shall be entered until she has been informed that she is at liberty to withdraw and every reasonable facility has been afforded to her for withdrawing. (15) Upon scrutiny, if the authorized officer has reasons to believe that any return furnished, which is deemed as assessed, is incorrect or has been under assessed resulting in evasion of property tax,- (a) may, on the basis of information available on record and after physical inspection proceed to re-assess the property, in the manner provided under this section; (b) if any property or land is liable to pay property tax but remains un-assessed and outside the taxable property records list or upon reassessment, the property tax is found more than five percent than the tax remitted, the evaded tax shall be payable together with penalty equal to the tax so evaded along with interest for the difference in tax paid and payable calculated at nine percent per annum. Illustration: If payable tax is rupees 150 for the year 2021 but actual property tax paid is rupees 100 then evaded tax amount is rupees 50. If the payment is happening on 23rd December 2023, then the following shall be payable – (i) Evaded Property Tax Amount = Rs 50/- (ii) Penalty for evasion = Rs 50/- (iii) 9% interest on the evaded property tax of Rs 50/- shall be calculated as follows – (a) 9% interest on Rs 25/- which is 50% of Rs 50/-, from 31st May 2021 until date of payment; and (b) 9% interest on the rest Rs 25/- which is 50% of Rs 50/-, from 30th November 2021 until date of payment. This provision shall also apply with respect to the unpaid demand where demands are already issued but for which the concerned person has not paid the demanded dues: Provided that the payments already made as per previous provision shall not be refunded nor adjusted against future liabilities. Provided further that the penalty payable by residential properties which have tiled or sheet roof (non-RCC) and is not more than 1000 Sq Ft, have only the ground floor and is self-occupied, shall be 25% of the evaded tax. Provided also that no penalty shall be payable by residential properties which are hutments, Government housing for poor, houses declared as slum by the Karnataka Slum Development Board or by Bruhat Bengaluru Mahanagara Palike, where such houses are self-occupied and have an area less than 300 square feet. Provided also that in case of properties which are in the Property tax registers but fail to pay the property tax, by end of the financial year in which the tax becomes due, shall, for the twelve months after the end of the financial year in which the tax became due, pay an interest at a rate of 15% per annum on the unpaid tax, calculated until the date when the tax is paid. Provided also that after end of said twelve months that is from second year after the end of the financial year in which the tax became due, any tax still unpaid shall pay a penalty equal to the unpaid tax plus the unpaid tax with interest on the unpaid tax at a rate of 9% per annum. Provided also that in case of existing defaulters the said twelve month period shall be deemed to start from 1.4.2024 and any tax out of the said dues still unpaid as on 1.4.2025, shall pay a penalty equal to the unpaid tax plus the unpaid tax with interest on the unpaid tax at a rate of nine percent per annum thereafter. Provided also that, as a one-time measure, in order to bring all the tax defaulters, un-assessed properties and those liable for re-assessment up-to-date with respect to their tax payments, there shall be following relaxations for the payments made until 30th November 2024, towards the unpaid tax, the un-assessed property and the property paying for re-assessment, namely:- (i) the penalty payable shall be rupees one hundred per year; and (ii) the interest payable shall be waived off. Provided also that, the properties which have already availed the benefits of one time measure under this clause before the commencement of the Bruhat Bengaluru Mahanagara Palike (Second Amendment) Act, 2024, shall also be eligible for above relaxations and any excess penalty paid by such properties shall be readjusted against any outstanding demand or future demand of the Corporation on the same property or the same owner. Provided that this provision shall be applicable prospectively. (c) if upon inspection and re-assessment as made under this section by the Chief Commissioner or the authorized officer, shall issue a notice of re-assessment to the tax payer demanding that the tax shall be paid within thirty days of the service of the notice and after giving the tax payer the opportunity of show cause in writing; (d) the owner or occupier may either accept the property tax assessed and the penalty levied or send objections to the Chief Commissioner or the authorized officer within a period of thirty days from the date of receipt of a copy of the notice under this sub-section; (e) the Chief Commissioner or the authorized officer shall consider the objections and pass such orders either confirming or revising such assessment within a period of sixty days from the date of filing objections and a copy of the order shall be sent to the owner or occupier concerned.