A new charge on Bengaluru’s property tax bills has caught homeowners' attention, sparking a debate over whether they should pay separately for the technology that enables them to pay their civic dues online.
The Greater Bengaluru Authority (GBA) has started levying an annual ‘software charge’ of ₹200 on residential properties and ₹1,000 on commercial properties, according to media reports. The charge is being collected alongside the annual property tax by the five city corporations under the GBA.
Deccan Herald newspaper reported that the new component to the tax demand comes in the middle of the financial year and without an official announcement.
The levy has drawn criticism from taxpayers, who questioned the rationale for introducing an additional charge and the timing of its implementation.
The GBA, however, has defended the fee, saying it is necessary to cover the recurring costs of maintaining and upgrading the digital infrastructure used for property tax collection and other civic services. Officials were quoted by media reports as saying that the authority lacks an independent revenue source to fund these IT-related expenses.
GBA Special Commissioner (Revenue and IT) Munish Moudgil has defended the move, arguing that technology has fundamentally changed how civic services are delivered in Bengaluru.
{{/usCountry}}GBA Special Commissioner (Revenue and IT) Munish Moudgil has defended the move, arguing that technology has fundamentally changed how civic services are delivered in Bengaluru.
{{/usCountry}}“In building a world-class city, we need world-class software and IT infrastructure,” Moudgil was quoted as saying in media reports, adding that developing and maintaining digital systems involves substantial expenditure. He described the ₹200 annual charge for residential properties as a nominal amount compared with the convenience and time saved through online services.
The GBA cited its e-Khata system as an example of this digital transformation's scale. Moudgil was quoted as saying that nearly 12 lakh e-Khatas had been issued in less than two years, something he said would not have been possible through conventional, paper-based systems.
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According to the GBA, the digital system has also helped achieve a disposal rate of around 98%, with applications typically processed within seven to eight days and citizens receiving e-Khatas in about a week.
Here’s what buyers and investors have to say
The bigger question now is whether taxpayers see the ₹200 or ₹1,000 levy as a reasonable user charge for these services.
Also Read: Bengaluru real estate: Haven't received an e-Khata yet? Check if you have cleared your property dues "A 'software charge' of ₹200 is not justifiable. But even after paying the charge, are homebuyers’ interests being protected? Homebuyers are still facing delays in getting e-Khatas for common area land and flat. We are awaiting the official order and will submit our objections at the appropriate level,” Dhananjaya Padmanabhachar of Karnataka Home Buyers Forum (KHBF), an umbrella body of apartment owners associations in Karnataka, told Hindustan Times Real Estate.
Bhavesh Kothari, founder and CEO, Property First Realty, said that while the annual software charges of ₹200 for residential properties and ₹1,000 for commercial properties may appear nominal on an individual basis, the larger question is how such charges are communicated and justified to property owners.
“With Bengaluru already witnessing rising property taxes, maintenance expenses and transaction-related costs, even small additional levies can add to the overall cost of ownership. For residential property owners, the impact may be limited, but for commercial property owners and businesses managing multiple assets, the cumulative cost can be significant,” he said.
The priority should be transparency around what the fee covers, how it contributes to improving municipal services, and whether the technology investment translates into greater efficiency for citizens. A clearly defined, service-oriented approach will be important to ensure that such charges are viewed as enabling better civic administration rather than simply adding another layer of cost for property owners., he added.