reater Hyderabad Municipal Corporation (GHMC) collects property tax on both residential and commercial properties. If you are the owner of a house or apartment, you must pay property tax whether you live in it or rent it out to the tenants.
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.
Procedure to Pay Property Tax
If you have a PTIN (property tax identification number), you can search on GHMC website to find out how much property tax is due.
GHMC property tax dues check
To know your property tax dues, follow the procedure given below:
- Click this link.
- 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.
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 the following documents ready in the PDF format.
- Building permission
- Occupancy certificate
- Sale Deed
- 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 details, 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 house 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
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.
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.
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 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 upto 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.
By: LOTUS TECH
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