Bengaluru: A new “Software Charges” component added to property-tax bills has triggered criticism among property owners and political opposition in Bengaluru, with questions being raised over the purpose, legal basis and timing of the additional levy imposed by the Greater Bengaluru Authority (GBA).

The charge is listed separately on property-tax receipts at ₹200 a year for residential properties and ₹1,000 for commercial properties. According to reports, the additional component began appearing on the property-tax portal midway through the financial year, with some property owners who had already paid their annual tax earlier reportedly not seeing the charge initially.

The GBA, however, has defended the charge, saying it is intended to meet the recurring expenditure involved in developing, maintaining and upgrading the digital infrastructure used to provide civic services.

GBA explains software charge

GBA Special Commissioner (Revenue and IT) Munish Moudgil has defended the levy, arguing that the city’s increasing dependence on digital systems has created recurring technology costs.

According to Moudgil, Bengaluru’s civic administration now relies on digital platforms for several services, including property-tax transactions and e-Khata-related processes. He said maintaining these systems requires expenditure on software development, upgrades and infrastructure.

The GBA has cited the “user pays” principle while explaining the additional charge. Officials have also pointed to the scale of digital services being delivered to property owners as evidence of the growing role of technology in civic administration.

Moudgil said the residential charge of ₹200 a year was relatively small when compared with the convenience and time savings provided by online civic services.

Property owners question additional levy

The introduction of the charge has nevertheless generated criticism among property taxpayers.

Residents have questioned why taxpayers should separately pay for the software and digital systems used by the civic administration when they already pay property tax for municipal services.

Some taxpayers have also sought clarity on whether there was a public consultation before the charge was introduced and what specific services or technology expenditure the amount would cover.

The controversy has been fuelled by the fact that the additional component appeared on tax receipts without what residents described as a prominent prior announcement. Reports also said the charge was introduced during the financial year rather than at the beginning of the property-tax cycle.

BJP questions legal basis and transparency

The issue has also drawn criticism from the opposition BJP.

Karnataka BJP president B.Y. Vijayendra questioned the introduction of what he described as a “software tax” and sought details about its purpose, legal basis, cost breakup and accountability.

Vijayendra questioned why property owners should separately fund government software systems and called for greater clarity from the GBA. His remarks were part of the political criticism surrounding the new charge.

The criticism does not by itself establish that the levy is legally invalid. The Karnataka Greater Bengaluru Governance Act, 2024 gives city corporations powers to levy certain fees, fines, user charges and other prescribed charges, but the specific authority and rules applicable to the newly introduced software charge would need to be examined separately.

GBA points to growth in digital services

The civic authority has sought to justify the additional expenditure by highlighting the scale of Bengaluru’s digital transformation.

According to officials cited in reports, nearly 12 lakh e-Khatas have been issued in less than two years. The GBA said technology-enabled platforms have helped reduce dependence on manual processes and improve the speed of processing property-related applications.

Moudgil said the average e-Khata application was being disposed of in around seven to eight days, with a reported disposal rate of approximately 98%. The GBA has cited these figures while explaining why continued investment in digital infrastructure is necessary.

The authority’s argument is that digital systems are not a one-time investment. They require continuing expenditure for maintenance, upgrades, cybersecurity, data management and improvements to user-facing services.

New fees also affect khata services

The controversy has also widened beyond the software component appearing on property-tax bills.

Reports indicate that the GBA’s new fee structure will affect certain property-related online services, including khata transactions. According to Bangalore Mirror, property owners seeking conversion from B-khata to A-khata would have to pay software-related charges of ₹2,000 for residential properties and ₹10,000 for non-residential properties.

This has added to concerns among property owners about the cumulative cost of accessing civic services.

The debate is therefore not limited to the ₹200 residential or ₹1,000 commercial annual charge. Residents are also seeking clarity on how different technology-related fees are being calculated and applied to property transactions.

Why the charge has become controversial

The dispute centres on two different views of how civic technology should be funded.

The GBA’s position is that digital platforms have become an essential part of urban governance and that maintaining these systems involves substantial recurring expenditure. From this perspective, a user-linked charge can help meet the cost of providing technology-enabled services.

Property owners and critics, meanwhile, have questioned whether such expenditure should instead be met from existing municipal revenues and taxes. They have also sought details on the legal provision under which the specific software charge has been imposed.

The questions being raised include the basis for calculating ₹200 and ₹1,000, the estimated annual revenue from the levy, the services covered by it and whether taxpayers were formally informed before it appeared on their bills.

GBA faces demand for greater clarity

The controversy comes at a time when Bengaluru’s civic administration is undergoing a major restructuring under the Greater Bengaluru Authority framework.

With property-tax collection increasingly shifting towards online systems, digital platforms have become an important part of the relationship between citizens and civic authorities. The GBA is therefore likely to face continued scrutiny over both the efficiency of these systems and the cost of maintaining them.

For taxpayers, the immediate issue is the additional amount appearing on property-tax receipts. For the civic administration, the issue is how to fund the technology infrastructure required to provide increasingly digital services.

The GBA’s explanation establishes its stated rationale for the charge, but questions about the precise legal provision, fee structure and public communication remain central to the controversy.

Property owners await more details

The dispute is now likely to focus on whether the GBA provides a detailed explanation of the charge, including its legal basis, cost calculations and the services for which the money is intended.

Until those details are made clearer, the ₹200 residential and ₹1,000 commercial software charges are likely to remain a point of contention among Bengaluru property owners.

The controversy also highlights a broader question facing rapidly digitising civic administrations: how the cost of technology-driven public services should be shared between governments and citizens.