Corner Site Owners Face Double Tax Burden, ETRealty


<p>Representative AI Image</p>
Representative AI Image

BENGALURU: A few extra square metres often cost some allottees nearly double the tax on the entire sites, sparking fresh complaints over BDA’s policy. Owners of irregularly-sized plots say the current slab-based rates unfairly penalise them, even when their sites use the same facilities as standard plots. Allottees argue that only the excess area should attract a higher tax, but the current system applies the higher rate to the entire site.

For the last five years, allottees raised concerns over the 2016 BDA board resolution on vacant-property taxation, calling it flawed. Owners of odd-dimension sites — mostly corner sites — such as 109–110 sqm using the same facilities as standard 108 sqm sites on the same street, say they are being unfairly charged. Instead of applying the higher rate only to the excess area, BDA calculates taxes at double the rate for the entire site.

Santosh Patil, 40, a site allottee at Nadaprabhu Kempegowda Layout, Block 5, said: “Why should we pay double for sites with odd dimensions? BDA mentioned the irregular markings during the auction, but the taxation was never explained. I bought my site in 2021 and realised I was paying almost twice my neighbour’s tax for just 4 sqm extra. Instead of taxing only the excess area at a higher rate, BDA applies the double rate to the entire site… There is no added benefit to justify this. I approached BDA in 2023 seeking a correction, but the issue remains unresolved. I am paying double the amount for a small parcel since I bought it, which is unfair.”Another allottee said: “I got only 20 sqm extra, but still I am being charged double, which is not just. It’s our hard-earned money.”

“They never informed us about the higher tax when I first bought the land in 2019, while allotting a corner site with odd dimensions,” the 43-year-old said.

The situation is persistent across the layouts, including Nadaprabhu Kempegowda Layout, Banashankari 6th Stage, and a few in Sir M Visvesvaraya Layout.

On Dec 6, 2025, allottees met the BDA finance department to follow up on the taxation issue. Previously, a letter was sent to BDA in 2023 requesting a review, but it reportedly was not acted upon. Associations say at least 3,000 land parcels have similar issues.

Sairam, executive member, NPKL Open-Forum, said: “When this issue was discussed with the BDA accounts office, it was indicated that this slab system is applied because the IT cell set up the system. BDA must review and have the system corrected to be fair and reasonable, like the income-tax slab system, but so far nothing has changed in the situation.”

According to a circular issued on Sept 28, 2016, BDA revised property tax rates for vacant plots for 2016–17 following widespread complaints from allottees. Smaller plots (6×9 sqm to 9×12 sqm) were taxed at 1/4000 of the guideline value, while larger plots (9×12 sqm to 15×24 sqm) were taxed at 1/2000. The revision came after charges were found to be 3-16 times higher than expected, and any excess tax already paid was adjusted against the following year’s dues.

A senior BDA official said, “For areas up to 8 sqm, only a single small slab is applied. If the area exceeds that, the next slab is charged. Nothing is calculated manually. Some corner sites have irregular measurements, like 13×43 sqm or 13×45 sqm, but the software automatically applies to the correct slab—this is part of the ongoing reform. The system ensures all measurements are fed automatically, and rates adjust accordingly. While some people request lower rates for smaller areas, the system charges strictly as per the rules. We are just following the rules.”

  • Published On Feb 1, 2026 at 04:00 PM IST

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