Property Tax is a significant source of revenue for any state governments. Owner of the property is subjected to pay the property tax. It is in turn used for the maintenance of public facilities as cleanliness of the locality, construction and maintenance of the parks, drainage facility, infrastructural developments like extension and construction of roads, flyovers, foot-over bridges, and many more.
The property tax is organised by particular municipalities of the state, where the property is located. Municipalities tend to hold smoothly and efficiently of the civic amenities to ensure the public facilities are well-maintained. Initially, property tax is administrated by the state government and later on assigned to different municipalities. So, as various municipalities differ from each other, in the same government the property tax may be levied differently for different Municipalities.
GHMC Property Tax
Greater Hyderabad Municipal Corporation (GHMC) collects property tax on both residential and commercial properties. Property owners are liable to pay GHMC property tax. If you are the owner of a house or apartment that is located in Hyderabad, you must pay property tax whether you live in it or rent it out to the tenants.
The Municipal body that collects the tax for the properties in Hyderabad is called Greater Municipal Corporation. The landlord is liable to pay the tax for GHMC on a yearly basis. The amount of property tax collected is used by GHMC to repair potholes, roads, construction of parks, footpaths, plant saplings, and to improve the infrastructure of the city.
The primary purpose of this tax is to provide and maintain efficient public services to the citizens. Age, type, location of the property all are considered while levying a tax on a particular property.
Procedure to Pay Property Tax
If you have a PTIN (property tax identification number), you can search on the GHMC website to find out how much property tax is due. It is a unique fourteen digit number that is allocated specifically for a particular house.
GHMC property tax dues check
To know your property tax dues, follow the procedure given below:
- Click this link to verify your property tax dues.
- Enter the PTIN.
- Click on Know Your Property Tax Dues. The search results display the tax payable.
If you don’t have a PTIN, and you know your door number, you can use your door number to find out the PTIN. Follow the steps given below to find your PTIN:
- Go to this link and Click Search Your Property Tax on the left menu.
- Choose your GHMC Circle.
- Enter your door number.
- Click Search Property Tax. The search result displays the PTIN of the property.
If you don’t know your door number, you have to submit a self-assessment request online or offline. For the online process, you can visit the GHMC website. The detailed procedure is explained later in the article.
Steps for GHMC Property Tax for New Property
If someone has purchased a new property, they need to submit the property tax application with occupancy certificate, sale deed to the relevant Deputy Commissioner. The Deputy Commissioner will further proceed for the assessment of the property tax. It will later on the tax inspector/Municipal Commissioner/Valuation Officer carry out the procedure by inspection of the building.
They will also verify the legal issues like the ownership of the property, title of the property, any issues involved with property, etc. And will impose the property tax as per the present rates of the property. In case it's a residential property the prevailing rates will, in case of non-residential a fixed price.
Offline Request for Property Assessment
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.
- Copy of the building sanction plan.
- Occupancy certificate.
Online Request for Property Assessment
Keep Building permission, Occupancy certificate, Sale Deed documents ready in the PDF format.
- Access the Self-Assessment Form here.
- Enter your mobile number.
- Click Send OTP.
- Enter the OTP in the text box on the above page.
- The Self-Assessment Form is launched. Fill in all the details. Please note that all fields marked with a red * are mandatory fields. If you don’t fill the circumstances, the form can’t be submitted.
- Browse and select the building permission, occupancy certificate, and sale deed documents in PDF formats.
- Check the declarations as applicable.
- Click Save.
After receiving the request (online or offline), a tax inspector inspects the property, verifies the documents, and levies the tax. Then, the applicant gets a unique Property Tax Identification Number (PTIN) with a new house number.
Property Tax on Renovated Building
If you modify the building/ house such as extend a portion of your home or build another floor, the door number and PTIN will be the same. Only the amount of property tax increases. To reassess the property, contact the Deputy Commissioner at the GHMC Office.
How to Calculate Property Tax for Residential and Commercial Properties
Updating with the latest technology, GHMC has implemented a simple and easy way to calculate the property tax. It has initiated an online for the residents to check their property tax hassle-free. To check property tax online, one has to log in to the website of GHMC.
As no manual process is included while doing the property tax transactions, from the start of issuing the notices to collecting the receipt of payment, one can do the entire process online at their fingertips.
GHMC calculates property tax based on the area of the property, location, type of construction, and so on. GHMC website has a calculator that displays the approximate amount of property tax due if you enter details of the property. The estimated tax may be differed by considering the correct location of the property and other parameters.
To calculate the residential property tax
- Calculate the plinth area of your property. The plinth area is the total built-up area which includes balconies and garage space.
- If your property is self-occupied, calculate the monthly rent per sq.ft of similar properties in your area.
- If your property is rented out, calculate the monthly rent per sq.ft as per your rental agreement.
- Use the below formula to calculate property tax. Property tax = plinth area * monthly rent per sq. ft. * % of tax (as per GHMC) - 10% depreciation + 8% library cess.
Want to reside in Hyderabad but confused on how to start your home search? Leave all your worries at bay! As PropertyAdviser, the best property directory as all the accurate and updated information on the latest apartments for sale in Hyderabad. Visit us and find your ideal home today.
To calculate the commercial property tax
Property tax on commercial property = 30% * Annual Rental Value (ARV) of non-residential buildings.
The factors determining the Annual Rental Value of the commercial property are as follows:
- Location of the building.
- Type of construction.
- Nature of use.
- Plinth area.
- Age of the building.
Annual Rental Value (ARV) = Monthly rental value (MRV) per sq. ft. of plinth area as notified by GHMC * plinth area (in sq.ft.)
MRV is notified by GHMC and is based on zones or locality, the category of the building, type of construction, and usage.
Let’s look at an example for calculating the property tax of commercial property:
Type of construction: RCC Ordinary Building
Nature of usage: Shopping Complex
Plinth Area (in sq. ft.): 1000
Monthly Rent notified per sq. ft. of plinth area: Rs 5
Monthly Rental Value (MRV) = Rs 5 * 1000 = Rs 5,000
Annual Rental Value (ARV) = 5000 * 12 = Rs 60,000
ARV is apportioned between land and building in 50:50 ratio
Therefore, ARV of Land = Rs 30,000
ARV of Building = Rs 30,000
Age of Building = 15 years
Allowance for repairs is deducted from ARV of the building before calculating property tax.
Use the table below to calculate deduction allowed for repairs
Age of the building
25 years and below
10% of building
Above 25 years and up to 40 years
20% of building
Above 40 years
30% of building
Source: GHMC website link.
As the shopping complex is 15 years old, the deduction allowed is 10%.
Deduction for repairs on ARV of building = 10% * 30000 = 3000
Net ARV = ARV of Building after deducting for repairs + ARV of Land
Net ARV = 27000 + 30000 = 57000
Property Tax = 30% of Net ARV = 0.3 * 57000 = RS 17,100
Add library cess @ 8% = 17100 * 0.08 = 1368
Therefore, total property tax due = 17100 + 1368 = Rs 18,468.
Steps for Property Tax Online Payment in Hyderabad
To pay GHMC property tax online:
- Click the link.
- Enter your PTIN in the PTI No.
- Click Know Your Property Tax Dues. The search result is displayed with the details of the property like door number, PTIN, and the amount of property tax that you must pay.
- Choose any of the payment options: Debit/Credit Card or Net Banking.
- Click Submit.
Enter the details such as the 16-digit card number, the expiry date printed on the card, the CVV number, and the tax amount.
- Click Pay. You will get a payment confirmation once your payment is successful. GHMC property tax online payment is now complete.
Steps for Property Tax Offline Payment in Hyderabad
To pay property tax offline, you can visit any of the following centres:
- 72 Mee-Seva centres in GHMC limits.
- Citizen Service Centres in all 19 circles of GHMC.
- GHMC bill collectors have handheld machines that are integrated with the central server.
GHMC does not allow any manual transactions in property tax. The entire process of assessment, issue of special notice, issue of annual demand notice, and collection is fully computerised.
Due Date and Penalty for Delay
Pay property tax before 30th June either online or through offline mode listed above. If you don’t pay by 30th June, GHMC will collect 2% as penal interest on the amount of property tax due in the first half of the current tax year.
Early Bird Offer for GHMC property tax payment (offer valid till 30 April 2018 only)
GHMC was giving a 5% discount on property tax if you pay by 30 April 2018.
To know more about property tax, visit www.propertyadviser.in.
GHMC Property Tax Exemption
All lands including agricultural, commercial, residential buildings are liable to pay property tax. Based on the type of property they are segregated and taxed. Although these some properties come under, a few properties are exempted or given concession while paying property tax.
Properties that are owned by Military servicemen or ex-employees are given a 100% exemption from paying the property tax. Holy places like temples, mosques, churches, or any other religion are not needed to pay property tax as they are wholly exempted from it. Renowned educational institutions and residential property owners who get less than Rs. 600/- as rental income are 100% exempted from property tax.
As per the update, Indian union budget 2019, has given relief from property taxation to the owners. The finance minister, Piyush Goyal had proposed that property owners can enjoy the benefits of self-occupied properties up to two residencies. No notional rent is needed to be paid for the second house if it is not given for lease and is vacant. According to budget 2019, a property tax exemption is given to the landlords whose annual incomes fall below Rs 5 Lakhs.
Do you love reading about the latest real estate news? Visit our website at www.propertyadviser.in for all updated information on real estate, properties for sale in Hyderabad, area analysis and many more.
By: Lotus Tech & Govi
Subscribe to Our NewsletterGet Notified About Latest News
- How To Calculate Property Registration Charges & Stamp Duty In Hyderabad
- Importance Of GHMC Property Tax For Hyderabad Residential Properties
- GHMC Building Permission Charges And Procedure In Hyderabad
- Best Real Estate Investment Options In Hyderabad Telangana
- Latest Property & Land Rates In Hyderabad 2018
- Steps To Make GHMC Property Tax Online Payment In Hyderabad
- RERA And Its Rules In Telangana
- Stamp Duty And Registration Charges In Hyderabad
- Procedure To Get Encumbrance Certificate Through Online In Telangana
- Will Millennials Boost the Indian Real Estate in Coming Years?
- What is the Importance of Buying a Home Instead of Renting?
- How to Buy a Home Within Your Budget?
- Which is better Apartment or Independent House- Know to Choose Ideal Home
- Pradhan Mantri Awas Yojana Scheme | Housing For All
- Facts for NRI's on Real Estate Market in India
- What are the Emerging trends in Indian Real Estate?
- Top Reasons for Real Estate Investment
- Top 5 Commonly Overlooked Expenses While Buying a Home