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GHMC Property Tax Guide: How to pay Property Tax in Hyderabad?

Admin 23 Nov 2022 192 Views
tax

The state government receives a major portion of its funding from property taxes. It is imposed on the property's owner. To enable effective and seamless management of civic facilities in different localities, such as local road maintenance, drainage, neighbourhood cleanliness, public parks, etc., property tax levy is outsourced to various municipalities within the states. There are differences in the basis of levy, computation, mode, and manner of payment of property tax because the state government administers it and subsequently delegates it to individual municipalities. To make it easier for our readers to comprehend and better plan their Hyderabad property tax GHMC payment, we will be simplifying the property tax assessed by the Hyderabad municipality and the tax benefits of property tax in this article.

What is GHMC Property Tax?

Greater Hyderabad Municipal Corporation (GHMC ), a division of Hyderabad Municipality, is the entity under which Hyderabad property owners must pay property tax annually. Better public services are made possible in Hyderabad thanks to the municipal organization's use of these funds. The GHMC bases its assessment on the annual rental value to collect the property tax in Hyderabad. In addition, it applies a slab rate of taxation to residential properties. By entering the pertinent information about your property, you can use the property tax calculator provided by the GHMC property tax payment on its website to determine the approximate value of property taxes. The exact value may change depending on other factors, such as the building's precise location.

 

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How is Property Tax Calculated in Hyderabad?

The entire built-up space, which includes balconies and verandahs, is what you should first measure. If you own a self-occupied property, find the standard per-square-foot rent in the area for the Monthly Rental Value (MRV). If you have rented it out, the rate specified in the rental agreement is the MRV per square foot.

 

The following is the formula for calculating property taxes:

 

Gross Annual Rental Value (GARV) x [(17 to 30%) Tax Rate as Per Slab Based on MRV - 10% Depreciation] is the formula for determining annual property taxes for residential properties. An additional 8% in library fees

 

GARV is calculated as Plinth area x [MRV (in Rs/sq ft) x 12]

 

Property tax on commercial property equals 3.5 x Plinth area x MRV.


  

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GHMC Property Tax Slabs 

Monthly Rental Value

General Tax

Conservancy Tax

Lighting Tax

Drainage Tax

Total

Up to Rs.50

Exempt

Exempt

Exempt

Exempt

Exempt

Rs.51 – Rs.100

2.00%

9.00%

3.00%

3.00%

17.00%

Rs.101 – Rs.200

4.00%

9.00%

3.00%

3.00%

19.00%

Rs.201 – Rs.300

7.00%

9.00%

3.00%

3.00%

22.00%

 


 

 

 

 

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What is the process for paying property tax in Hyderabad?

A. Online process

The taxpayer will need the Property Tax Identification Number (PTIN), a special 10-digit number for new PTINs, and a unique 14-digit number for old properties for the online process for each property held. To find out your PTIN, go to the GHMC Property Tax search portal's "Search Your Property Tax" option, choose your GHMC circle, type in your door number, and then click "Type property tax" In the search results, your PTIN will be shown.

 

Step 1: Visit GHMC 's online payment page.

Step 2: Type in your PTIN and select "Know Property Tax Dues" from the menu.

Step 3: Check the information regarding your arrears, taxable amount, interest on arrears, adjustments, and other mentioned elements on the created page.

Step 4: Select a payment option, such as net banking, a debit card, or a credit card, and complete the transaction by entering your payment information into the payment gateway.

Step 5: Enter your PTIN here to print the receipt for your payment. 

B. Offline process

As an alternative, you can bring the following documentation to MeeSeva counters, Citizen Service Centers, Bill Collectors, or State Bank of Hyderabad branches:

 

● A registered sale deed with a gazette officer's certification

● Certificate of Occupancy Copies of the building sanction plan

● Demand draught or check made payable to "Commissioner, GHMC."

Note: The deadlines for paying property tax are July 31 and October 15. If you wait to pay, two percent interest is added to the tax amount each month.

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What are the exemptions offered in property tax?

Property taxes are not required for several types of real estate. These properties are divided depending on their rental rates and whether or not they have a special status approved by the government. Here are several situations where tax is not collected:

 

● properties with market rents that are up to Rs. 50 per month

● If a former service member is the property's owner

● Real estate owned by nonprofit organizations

● Sacred spaces

● The Central Board of Secondary Education (CBSE) and other educational boards recognize schools up to class X.

● After a tax inspector audit, homes the owner has designated as "unoccupied premises" receive a 50% concession on the property.

About Author

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Jatin Dubey

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.

An enthusiastic content writer who is a law graduate and has been working as Real Estate Consultant for around 9 years.
He has worked with top Real Estate Agencies and Builders in Delhi, Bangalore and Pune. His skills to perform market analysis and explore high potential localities has helped many clients in the past.