One Time Settlement Scheme : Benefits & Eligibility

One Time Settlement Scheme – The one-time settlement (OTS) program for property tax defaulters has been extended by the Bruhat Bengaluru Mahanagara Palike (BBMP) allowing for tax payments with a 50% penalty and full interest reduction till 31 July 2024. This program, which was originally only accessible until 31 May has been extended in order to help property owners. Many would profit from the ruling, including those who had several year’s worth of unlawful property taxes, properties that were excluded from the BBMP’s tax authority and places that under assessed tax under the Self-Assessment Scheme (SAS). In this post you get every necessary information including its objective, eligibility, documents and much more.

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One Time Settlement Scheme Bengaluru

The Bruhat Bengaluru Mahanagara Palike (BBMP) will provide defaulters the option of a One-Time Settlement (OTS) Scheme in order to recover debts within its jurisdiction. According to a recent announcement, the fine imposed under the BBMP Act, 2020 would be equal to the amount of taxes that were not paid. Not much relief has been granted to properties with mixed-use aspirations that are exclusively designated as residential.

The notification did clarify, though, that tax penalties could only be applied for a maximum of five years, regardless of how long the default lasted. Interest is not assessed on contributions made after five years. Just one lakh persons have paid off their debts as of yet. The program gives a 50% reduction in penalties and a 100% remission of interest.

Overview Of One Time Settlement Scheme

Name of the scheme	One Time Settlement Scheme
Issued by	H S Shivakumar, undersecretary of the department of urban development
Beneficiaries	Property tax defaulters
Objective	To reduce penalty amounts and forgive interest in order to provide property tax defaulters relief.
Official website	bbmptax.karnataka.gov.in

Objective Of One Time Settlement Scheme

The main objective of this scheme is to relieve property tax defaulters by waiving interest and reducing penalty amounts.

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Benefits Of One Time Settlement Scheme

• Under the scheme, those who pay OTS would receive a 50% tax deduction.
• An internet-based infrastructure is expected to speed up rehabilitation, according to the BBMP.
• The aim of BBMP’s actions is to raise tax income.
• The BBMP states that the payment may be made in full at this time.
• The notice orders are valid until 31 July of this year.
• The warning was necessary because the BBMP was utilizing a system that permitted it to levy a penalty of double the amount for undervaluing property taxes in addition to nine percent bank interest.
• Moreover, no time limit was included in the clause, thus the BBMP might penalize for as long as it pleased.

Beneficiaries

A variety of individuals will profit from the OTS Scheme, including those who had several years worth of overdue property taxes, buildings that were excluded from the BBMP’s tax authority, and places that under assessed tax under the Self-Assessment Scheme (SAS).

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One Time Settlement Scheme For Property Tax Defaulters

• A twenty-five percent penalty (on tax avoided) will be applied to residential premises that are exclusively ground floor have a tiled or sheet roof (non-RCC) and are not more than 1,000 square feet for personal use.
• Homes under 300 square feet used for personal use within residential properties designated as slums by the Karnataka Slum Development Board or BBMP and government housing for the destitute would not be subject to fines.
• The fine for properties that are under assessed has been reduced in half.
• Interest on taxes saved, assets exempt from property tax and properties beyond the tax’s jurisdiction were all excluded.

FAQ’s

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