GHMC Property Tax in Hyderabad – Calculation, Payment, Due Dates, Penalty and Exemptions
Property tax is an annual sum that a property owner pays to the government annually or semi-annually. The local authority or municipal corporation of an area evaluates and levies the property tax. GHMC (Greater Hyderabad Municipal Corporation) collect property tax from property owners in Hyderabad. The collected sum is utilised for social improvements like the construction and maintenance of roads, hospitals, schools, parks, etc.
Read on to know what is GHMC property tax, tax calculation, online payment, due dates, the penalty for non-payment and conditions when tax is exempted.
What is GHMC Property Tax?
GHMC (Greater Hyderabad Municipal Corporation) is a local government body responsible for levying and collecting taxes on the property. If you are residing or owning a property in Telangana, GHMC is responsible for collecting property tax. You can pay GHMC property tax twice a year.
How to Calculate GHMC Property Tax?
To understand GHMC property tax calculation, you need to have a clear idea of each of these parameters:
1. Plinth area
Plinth area means total built-up area, including balconies, corridors, garages, etc.
2. Gross annual rental value
GARV uses the following formula for calculation:
Plinth area x MRV (monthly rental value) in Rs. per sq. ft. x 12
Now, there are two different formulae for residential and commercial property tax.
Residential property tax calculation uses the following formula:
GARV x (Slab rate – 10% Depreciation) x 8% library cess
Commercial property tax calculation uses this formula:
3.5 x Plinth area x MRV in Rs. per sq. ft.
How to Pay GHMC Property Tax Online?
Follow these steps to pay GHMC property tax online:
- Visit the Online GHMC Website
Log in to the official GHMC portal.
- Check Property Tax Dues
Enter your PTIN, and click on ‘Know Your Property Tax dues’.
- Verification of the Deed and Oher Documents
Legality of the deed and other additional documents will be checked.
- Complete Payment
Verify all details visible on the screen and select your preferred payment option. Enter your payment details carefully and complete the transaction. Collect or download GHMC property tax receipt after that.
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What Are the Due Dates, Rebates, and Penalty Applicable to GHMC Property Tax?
GHMC property tax dues are usually collected bi-yearly on October 15 and July 31.
You have to pay a penalty of 2% on the remaining amount if there is a delay.
Rebates are rewards for those who pay taxes in advance and win in a lucky draw manner. It encourages the payee to clear all dues within the given timeline.
Where to Find GHMC Tax Payment Details?
If you want to find your GHMC property tax details online, go to the online payment portal of GHMC. Then, click on ‘Search Your Property Tax’ under the ‘Property Tax’ tab, and enter the circle number and property details such as PTIN, door number, and owner’s name to know tax payment details.
Exemption from the Payment of Property Tax
There are certain exceptional circumstances wherein GHMC exempts a property from taxes or concession. The following are such circumstances:
- A property owned by a non-profitable organisation, veterans, government organisation or religious order, enjoys exemption from property taxes.
- A rented out property with a monthly rent value of less than Rs. 50, is also exempted from taxes.
- An unoccupied property enjoys a 50% concession on taxes if the official Tax Inspector’s report says so.
GHMC Property Tax — New Assessment
To make the property tax assessment system user friendly, GHMC has introduced a new system for its citizens to assess their taxes. However, it would help if you keep these pointers in mind:
- For assessment, you have to submit an application along with the sales deed and occupancy certificate to the Deputy Commissioner of property tax.
- Post submission of the mentioned documents, that property will undergo inspection by the Tax Inspector, Valuation Officer, and Assistant Municipal Commissioner.
- After inspection and verification, the authority will decide the tax value according to current tax rates for residential properties or the fixed tax rates for commercial properties.
- Post completion of the whole assessment process, the property gets a unique property tax identification number and door number.
There is an option for self-assessment as well. You can submit a new assessment application along with all the details, which will help the owner to get an estimated property tax value. The online application will be forwarded to the Deputy Commissioner, after which a Tax Inspector/Officer will visit the property for a physical evaluation. After completion of the inspection, the authority levies the applicable tax rate and allots PTIN.
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Final Word
Among a few new initiatives of GHMC property tax, the one regarding the construction of ‘green buildings’ has a great influence on the environment as well as on the citizens. Buildings with rainwater harvesting installation and rooftop solar installation for power generation will enjoy tax incentives.
FAQs
Ans. If you want, you can pay property taxes offline via a cheque or demand draft drawn in the name of ‘Commissioner, GHMC’. The draft can be submitted at any of the following:
State Bank of Hyderabad
MeeSeva counters
Citizen services centre
Ans. Any of the three following methods are used to calculate property taxes by the authorities:
Annual rental value system
Capital value system
Unit area value system
Ans. The tax levied on the profit earned by selling a property is known as the capital gains tax on property. Note that no tax is applicable on the capital gains if the entire amount is utilised to buy a new property within 2 years.
Ans. In many countries, a tenant has to pay the property tax. But in India, the property owner has to pay the taxes. If an owner is making you pay so, you can sue him/her in civil court.
Ans. No, the Central Government does not determine property tax. It is levied by the local municipalities or organisations alike. The property tax is based on the property value. The valuation and rates of taxes differ from one municipality to another.
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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