Are you the owner of commercial or a residential property in Hyderabad? Then you will be considered under the purview of Greater Hyderabad Municipal Corporation (GHMC). The GHMC property tax will charge yearly on all the residential and commercial properties. These property taxes are calculated based on the annual rental value, which will depend on different factors. They include plinth area, location, ownership, and usage of the property. One can find their GHMC property tax details by door number.
Property taxes are charged on all GHMC approved properties, and the amount charged varies upon the ownership of the property. GHMC offers a 100% tax exemption on properties include owned currently by serving and ex-servicemen, religious places, charitable institutions, and estimated at an annual rental value less than Rs 600. In addition to this, if a piece of property offers a designated amount of vacant area, a 50% tax deduction is provided. However, it is subject to examination by a tax inspector.
GHMC Property Tax Dues
To ensure safe and smooth civic facilities, state governments impose a property tax on landowners. Every year property owners in Hyderabad are liable to pay property tax without fail or a penalty interest of 2% per month is levied on the outstanding amount.
The end date to pay GHMC property tax search for the half-year is July 31 and October 15. One can easily find his/her property tax by visiting the GHMC website.
What is PTIN?
Property Tax Identification Number (PTIN) is a unique 10-digit number issued by GHMC to every Independent house, villa & apartments in Hyderabad to pay GHMC property tax. In other words, if you own three properties, you will be allotted three PTINs.
Why Do You Need a PTIN Number?
You can use the PTIN to find out how much property tax is needed to pay. You can search the payable the GHMC property tax search by using the PTIN search option available on the website.
Steps to Find the Payable GHMC Property Tax
Step 1: Visit the GHMC website.
Step 2: On the left side menu bar, click on “Property Tax Payment”.
Step 3: Enter the PTIN.
Step 4: Click on “Know Your Property Tax Dues”. The search results will display the tax payable details.
How to find GHMC property tax details by door number?
If you are not aware of your PTIN which is used to check your property tax, then with the help of your door number, you can find the required details. One can quickly check their property details by visiting the online GHMC property tax search portal.
Follow the steps given below to find your PTIN:
Step 1: Click “Search Your Property Tax” on the left menu.
Step 2: Choose your GHMC Circle.
Step 3: Enter your door number.
Step 4: Click “Search Property Tax”. The search result will display the PTIN for the property.
If your Door Number is not available, you must apply to GHMC asking for an assessment of the property. The application will result in allotting a new door number, as well as a PTIN number to your property. You can request for property assessment offline or online.
Offline Request for Property Assessment
You need to submit your application to the Deputy Commissioner. The list of documents you must submit along with your application are as follows:
- Registered sale deed/gift deed/partition deed attested by a gazetted officer.
- Link documents attested by a gazetted officer.
- Photocopy of the approved building plan.
- Occupancy certificate.
Online Request for Property Assessment
Keep the following documents ready in the PDF format.
- Building permission
- Occupancy certificate
- Sale Deed
You can access the Self Assessment Form online, by entering all the required details it will be forwarded to the concerned department. By inspecting the premises, they will further levy the property accordingly. After this procedure, a new PTIN will be allotted for the owner.
If you want to modify your independent houses or villas in Hyderabad like extending a portion of the house or build another floor, there will be no change in the PTIN only the amount of property tax will increase.
How to Pay Property Tax Using PTIN?
Step 1: Visit the “GHMC property tax search” online portal
Step 2: Enter your PTIN in the PTI No.
Step 3: Click “Know Your Property Tax Dues”.
The details of the property like door number, PTIN, and the amount of property tax that you must pay will display. You can choose from any of the payment options: Debit/Credit Card or Net Banking.
Procedure to Calculate GHMC Property Tax Search in Hyderabad
When you are paying property taxes, the GHMC website makes it very easy to know detailed information and utilise the property tax calculator to know your tax amount. In the website, fill your details like occupation, property carpet area, etc. to identify your tax details. There is a separate payment of property taxes for residential and commercial properties. Do you want to know about property tax calculation in Hyderabad? Then the below information helps you to get a clear view.
Property tax calculation for residential properties:
Annual Property Tax = Gross Annual Rental Value (GARV) x (17% – 30%) [Slab Rate – 10% depreciation] + 8 % library cess
Please note that GARV can be calculated using the following:
GARV = Plinth area x Monthly rental value in Rs/ sq ft x 12
Slab rate is determined based on Monthly Rental Value (MRV) as fixed by GHMC.
Commercial properties property tax calculation:
Annual Property Tax = 3.5 x Plinth Area in sq.ft. x Monthly Rental Value in Rs/sq.ft.
The plinth in both instances is calculated based upon the total built-up area of the property in question.
The MRV is governed by the type of occupancy as well as the cumulative MRV of properties in the vicinity of the said property.
Payment of Property Taxes in Hyderabad
Property tax is paid through offline or online. However, many owners choose to pay tax online to have secure payment and save valuable time.
You have to log onto the GHMC website tax payment portal and put your unique Property tax identification number (PTIN). For old properties, the PTIN will be 14 digits, and for new properties, the PTIN is 10 digits.
After entering your PTIN, you can know your Property Tax Dues. Fill in all required details of your property like plinth area, location, arrears, interest on arrears and other adjustments.
You can pay your property tax through net banking, credit or debit cards. After the completion of property tax payment, it is recommended to keep a copy of the payment receipt.
If you want to pay your property taxes through offline, it is done through Mee-Seva counters, Citizen Service Centres, Bill Collectors or even at any of the State Bank branches in Hyderabad. You can pay your property tax either a check or a Demand Draft (DD) drawn in the name of Commissioner, GHMC.
The penalty of 2 per cent interest will be generated per every month if you delay paying your property tax.
At what time do the Property Taxes in Hyderabad is paid?
You can pay your half-yearly taxes twice every fiscal year, on 31st July and 15th October as per the government rule. To encourage timely payment of taxes, the GHMC had proposed cash rewards for payment of taxes in the fiscal year 2016-17, which promote the timely property tax payments. The taxpayers are selected through a lucky draw and are awarded by cash rewards.
Property Tax Exemptions
GHMC offers a few tax exemptions based on the type of properties, ownership or premises. The tax exemptions vary from 100% to 50% based on the type of property.
The money collected through the tax payments is distributed to welfare activities of Hyderabad by GHMC. So be the part of the service activities and pay your property taxes timely.
The law on land tax determines - among several modifications applied - that the real estate will be re-evaluated fiscally every five years.
Here is the core of every claim by the owners. The economic appraisal is a 'tax' appraisal and not a commercial appraisal. Its sole purpose is to determine to what amount, by territorial tax, the real estate is affected in the five-year period in which each reevaluation takes effect.
That is why people have an obligation to know and understand the current tax assessment for their property.
Another prevalent situation when analysing antecedents to carry out real estate appraisals is to find properties that have large building surfaces. That is, the tax assessment reflects the assessment of the land and does not include the construction that physically exists.
Faced with this scenario, much attention must be paid, since it is most likely that this construction does not have the final reception issued by the respective municipal works management. Likewise, for the owner or for the potential buyer, this represents another problem: Being affected by a surcharge for the concept of 'empty site' in urban sectors, contemplated in the territorial tax law.
To this, we must add that if that buyer has thought to request a mortgage loan to finance the operation, the banking institution, when ordering the property, will only value the land. If the construction is regularised, with the corresponding certificate of final municipal reception, the entire property is valuable and subject to guarantee in all its appropriability, of course.
The law is clear, and the SII is a highly technological and standardised state in the information. Therefore, we must not miss these and several other details that are part of the list of background to evaluate when buying a property. Also, you have to take them into account when you already own it. In that sense, not having them reviewed by experts in the field is an act of negligence that will have economic consequences sooner or later.
By: Lotus Tech & Govi