Phytases are the enzymes hydrolyzing phytic acid to less phosphorylated myo-inositol derivatives, releasing inorganic phosphate. Phytase has become an important industrial enzyme and is the object of extensive research. The objective of the present study was to isolate and characterize a potential phytase producing bacterial strain from boggy water, and production of phytase in a submerged fermentation system. The phytase producing bacteria were isolated from boggy water, and were screened using PSM plates, containing selectable media. The phytase producing strain was identified using 16S rDNA sequencing followed by BLAST analysis. Different fermentation parameters, including incubation time, temperature, pH, carbon source and nitrogen sources were optimized to enhance phytase production. The phytase enzyme was produced using shaken flask fermentation and purified using ethanol precipitation and chromatography. The enzyme was further characterized using SDS-PAGE and zymogram analysis. From the 21 bacterial isolates, one Bacillus subtilus strain (BPTK4) with high potential for phytase production was selected. The isolated Bacillus subtilis produces significant amount of phytase during 48th h of incubation at 32 °C with the pH of 6.5. Glucose is considered as suitable carbon source whereas yeast extract is for nitrogen. It has been concluded that pond water can also be used as the source for the isolation of phytase producing bacteria. The phytases produced can be used further for various applications.