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Owners of irregularly sized and corner sites in Bengaluru developed under the Bangalore Development Authority (BDA) are reporting property tax anomalies that leave them paying almost double what neighbouring standard plots are charged. The tax regime, based on a slab structure introduced by the BDA, can push a modest increase in site area into a substantially higher rate bracket, forcing the higher rate to apply to the entire site rather than only the excess area beyond standard dimensions. Allottees from layouts such as Nadaprabhu Kempegowda Layout, Banashankari 6th Stage and Sir M Visvesvaraya Layout have raised concerns that they were not informed about these tax implications at the time of purchase. BDA officials say the automated system applies tax strictly according to predefined slabs, and there has been no change despite requests for a more equitable approach. Around 3,000 plots are thought to be affected by the current policy framework.
Property owners in several Bangalore Development Authority (BDA) layouts are contesting the authority's property tax treatment of corner and irregularly sized plots, saying it creates a disproportionate financial burden. According to complainants, the BDA's slab-based tax policy can push sites with only a slight excess in area into higher tax brackets, resulting in nearly double the tax for the entire plot compared with standard plots of similar location and amenity use. Advertisement
Under the existing regime, first introduced by a BDA board resolution in 2016, tax slabs are based on plot dimensions. Small increases beyond defined sizes automatically place the entire site into a higher calculation slab, rather than applying higher rates solely to the exceeding area. Site allottees in layouts including Nadaprabhu Kempegowda Layout, Banashankari 6th Stage and Sir M Visvesvaraya Layout report that this approach results in significantly higher annual tax liabilities for plots that differ by only a few square metres from the standard dimensions.
Buyers have stated they were not notified about these taxation consequences at the point of purchase, and that they use the same local amenities as neighbours with standard-sized plots. Members of resident associations say they have repeatedly requested adjustments to the policy - such as taxing only the excess area at higher rates, similar to progressive income tax systems - but that the BDA has not taken corrective action.
BDA officials have explained that property tax calculations are handled by an automated system based on the prescribed slabs, with no manual intervention at the assessment stage. They emphasise that the current rules are applied uniformly across cases and that the authority is adhering to those statutory guidelines.
Residents' groups estimate that roughly 3,000 land parcels could be subject to the double-burden effect, with calls continuing for the BDA to revisit its slab policy and introduce a fairer calculation method that reflects incremental area differences rather than penalising entire plots.
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