Property tax is an annual direct tax levied by the State Government. In a city, its municipal bodies are delegated to collect this tax.
Municipal bodies evaluate a property based on its size, area, and other attributes. Based on these criteria, it imposes the property tax. We shall look at facts about property tax payment.
Money collected through property tax is used to maintain civic amenities like sanitation, roads, healthcare, public transport, etc.
If you own a property in Hyderabad, then you come under the purview of Greater Hyderabad Municipal Corporation.
The funds that are collected in the form of tax are used for the betterment of public amenities. They are utilized for infrastructural facilities and development.
Method to calculate GHMC Property Tax
GHMC fundamentally works on an annual rental system for levying tax on residential and commercial buildings.
The process of calculating the annual rental value is relatively easy. In the upcoming section, you will be shown a step-by-step guide to calculate GHMC property tax.
Formulae for calculating GHMC Property Tax
GHMC tax is calculated differently for residential and commercial properties.
Residential Property Tax
Annual residential property tax = GARV × (Slab rate−10% Depreciation) × 8% Library Cess
GARV (Gross Annual Rental Value) = Plinth area x Monthly rental value in Rs/ sq ft x 12
Commercial Property Tax
Annual Property Tax = 3.5 x Plinth Area x Monthly Rental Value in Rs/sq.ft.
When calculating commercial property tax, other factors such as taxation zone, type of construction, and property usage are also considered by MRV.
The plinth area, often called a build-up area, refers to the total area (internal and external walls), including balconies and garages.
Process flow of filing GHMC Property Tax
The First Step
Generating Property Tax Identification Number (PTIN) is the first step towards the process of filing your property tax. It is a ten-digit (14 digits for older properties) unique number allotted for each independent property.
Online method to generate PTIN
GHMC has introduced an online self-assessment scheme. Here is how you can go about it –
Go to the site https://www.ghmc.gov.in/Propertytax.aspx, and from the top menu bar, click on Online Services. A drop-down will appear; click on “Self Assessment of Property.”
It will verify your no through an OTP. The next step will ask your personal and property details like plinth area, locality, building permission number, etc.
When you submit all the necessary details, you will get an estimate of the tax amount.
The application with all the details will then be sent to the deputy commissioner. The officials will come for physical verification and allot the property owner a PTIN number.
Offline method to generate PTIN
Generating PTIN online is a more convenient route. However, if you consider the offline option, you need to apply to the city deputy commissioner.
You also need to attach copies of the sale deal and occupancy certificate.
After verification of the documents and property, a PTIN and a house number will be issued to the property owner
What if you forget your PTIN?
No worries! Follow these four steps to retrieve your PTIN
- Log on to the website.
- In the top menu bar, you will find an Enquiry section. When you click on it, a drop-down will appear.
- Click on the option ”Property Tax.” It will direct you to the “Search your PTIN” option.
- Here you need to enter few details, and you will retrieve your PTIN
Pay GHMC property tax – The online way
Log into the GHMC website. From the top menu bar, click on online payments. A drop down will appear; here, click on Property Tax.
Enter the PTIN number and hit the button “now Property Tax Dues.”
On the next page, you need to verify the details like arrears, property tax amount, etc.
Select the payment gateway convenient to you. You will have the option of net banking or debit or credit card.
After the successful payment, you will get a receipt. You can print a copy of the receipt.
Pay GHMC property tax – The offline way
The government has enabled the option to pay property tax offline through MeeSeva counters, Citizen Service Centre, bill collectors, or any branch of State Bank of Hyderabad. Make sure you have the following documents with you –
- Sale deed.
- Occupancy certificate.
- Copy of the building plan.
- A cheque or demand draft is drawn in favour of the GHMC commissioner.
Exemptions and Concessions
Properties that have a monthly market rental value of up to rs 50 are exempted from property tax.
Properties used by charitable organizations or dedicated to religious services are exempted from property tax.
Present or ex-military personnel, recognized schools are also exempted.
Property with vacant premises will receive a 50% discount if an official report from a tax inspector is filed.
Residential landowners who make less than Rs. 600/ – as rental payments are 100% excluded from the property tax.
Things to Note
31 July and 15 October are the due dates for the half-yearly property tax submission.
If you don’t adhere to the due dates and delay the payment, you will become liable to a penalty of 2% per month on the outstanding amount.
The government is offering cash rewards based on the lottery system to encourage the citizens to pay their dues on time.
Now that you are acquainted with the process of submitting the property tax make sure that you pay your taxes on time.
The online channels have eased the process and made it a whole lot easier for you to pay them.
These taxes are used for the betterment of people and help you on a personal front.
It gives your profile more credibility, which in turn makes it easier for you to get approval on your loan request.
A successful property tax record makes your case stronger from a legal standpoint in case of property disputes or conflicts.
Lastly, nobody likes late penalty fees!