Property tax is the tax imposed on homeowners and is regulated by state governments and is one of the main sources of revenue for the state. The property tax collected is used for the upkeep and maintenance of civic institutions and towns. This local service maintenance includes maintenance of roads, sewers, public spaces such as parks, public toilets, etc.
The Greater Hyderabad Municipal Corporation (GHMC) the corporation responsible for collecting property tax in Hyderabad, uses the annual rental value as the basis for collecting the property tax. The taxation method used by GHMC is based on flat rates.
A Tax Calculator is available on the GHMC website for the convenience of users. Homeowners can obtain an estimate of the property tax payable under the GHMC by visiting their website and submitting the relevant details. There may be slight variations depending on the exact location of a particular property, but owners have a clear idea of how much to pay.
What is the GHMC Property Tax in Hyderabad?
GHMC provides the exact formula and rates used to calculate the property tax to be levied on properties within its jurisdiction. There are separate formulas for calculating property tax for residential and commercial real estate.
First find the plinth area of the property, be it residential or commercial. The plinth area is the base for all the calculations to be made for the finding out the property tax of any property. Plinth area is the total built up area including balconies and/or garages.
For Residential Properties
For residential properties, the property tax can be calculated using the formula
Gross Annual Rental Value (GARV) x (17% – 30%) Slab rate– 10% depreciation + 8 % library cess
GARV= Plinth area x Monthly rental value in Rs/ sq. Ft x 12
Slab Rates
For Commercial Properties
For annual property tax on commercial properties the following formula can be used
3.5 x Plinth Area in sq. ft. x Monthly Rental Value in Rs. /sq. ft.
For commercial properties GHMC has issued Fixed MRV depending on different circles in different taxation zones. The MRV can be found on this Website: https://www.ghmc.gov.in/proposed_div_zones.aspx.
Steps to Pay Property tax at GHMC
Online
Visit the GHMC online Webpage at https://onlinepayments.ghmc.gov.in/.
Enter the Unique Property Tax Identification Number (PTIN) along with Registered Mobile Number
Check all dues, arrears, tax, adjustments etc. and pay either using net banking, credit or Debit Cards.
Offline
Owners also have the option of making an offline payment by Drawing a Cheque or Demand Draft in favour of “Commissioner, GHMC”. The Cheque/DD can easily be deposited at any of the following,
State Bank of Hyderabad (All Branches), Citizen Service Centres, Mee Seva Centres or with any GHMC Bill Collectors.
Tax Exemptions
Properties owned by Military Servicemen, ex or currently serving are 100% tax exempted
Places of religious worship are 100% tax exempted
Educational institutions which are recognized (up to 10th standard) are tax exempted to 100%
Vacant premises receive up to 50% concession dependent on the official report submitted by tax inspector.
How to get GHMC Property tax Challan/ Receipt
With the advent of online methods for tax payment, it has become easier to receive/download receipts.
For the GHMC Property Tax Challan, follow these steps:
Visit this following website:
https://onlinepayments.ghmc.gov.in/PTax/PT_Recipts_Main
Enter the PTI No.
Click on Display receipt and Download the Receipt
What is the last date to pay the GHMC Property Tax?
Property Tax is to be paid twice a year on 31st July and 15th October. Any delay results in penalty being levied at a 2% per month on the outstanding amount.
GHMC gives out cash rewards through a lucky draw to owners who pay their dues before dates as a form of enticement in order to get property owners to clear their arrears.
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