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BBMP's random checks to pin tax defaulters

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The Times of India                     28.02.2013

BBMP's random checks to pin tax defaulters

BANGALORE: All property tax defaulters who, for instance, have claimed their four-storied house as two-storied in the self-assessment scheme have to face the music now. The Palike is set to verify the tax paid by such defaulters through its random checks.

BBMP commissioner Siddaiah has set a deadline of one more month for his officials to track property tax defaulters across the city and recover dues of Rs 1,000 crore. "People have suppressed facts from the BBMP on the extent of their properties," he said.

Siddaiah told the BBMP council on Wednesday that there are 3.25 lakh tax defaulters in the city who owe the Palike more than Rs 786 crore. "If we levy 2 % penalty per month on each of them, we can mop up about Rs 1,000 crore," he said.

Citing the example of a tech park and a five-star hotel which are among the property tax defaulters, the commissioner said, "A five-star hotel in the central business district has undervalued the extent of its property and paid Rs 26 lakh as against the actual Rs 87 lakh. A tech park that houses more than 12,000 people has declared its total area as 11 lakh sq ft, whereas it's spread across 27 lakh sqft of area. We have given them 15 days to pay dues of Rs 60 crore. If they do not fall in line, we know what to do," he said.

Siddaiah also spoke about BBMP's delay in issuing khatas to thousands of property owners because of which many are not under the tax net. "In outer zones, most of the recently built group housing complexes haven't got khata and therefore pay no tax. We must look into this issue," he said.

"Ideally, after introducing the self-assessment scheme (SAS), we should have started rigorous verification of tax paid and the actual extent of properties. But that wasn't done. Now everyone in the BBMP, including its chief engineers, executive engineers and even the special commissioner, has been roped in to re-assess the property tax paid," he said.
Last Updated on Thursday, 28 February 2013 11:41