A Complete Guide to the GHMC Property Tax in Hyderabad

Everyone desires to achieve a stage in life when they can purchase land or a flat in an apartment for their family. However, one must perform plenty of legal work and sign the registry to fulfil this desire and aim.

Property tax is the tax that every real estate owner or landowner of actual assets like residential buildings, office buildings, and others is responsible for paying to the government, such as the panchayats or municipal corporations.

These taxes are a necessary basis of income for the state government and are levied on the property owners. This tax is evaluated on the value of the property, including land.

Property tax is managed by State Government and charged to different municipalities resulting in the difference in the basis of levy, analysis, method and mode of payment. Property tax rates and the taxed property differ from state to state, and it is crucial to examine the relevant tax laws when purchasing the property.

What is GHMC Property Tax?

GHMC means Greater Hyderabad Municipal Corporation. The GHMC property tax is an expenditure that every property owner of Hyderabad should bear. This tax charge is for the improvement and supervision of conveniences and facilities and the infrastructure growth in the region.

Property owners in Hyderabad must pay these taxes to the Greater Hyderabad Municipal Corporation. Every owner of Hyderabad must make the GHMC tax payment yearly unless they enjoy they are from a distinct category of owners.

The GHMC imposes taxes on both commercial and residential properties. The management supervises the revenue collected for the repair and supervision of roads, pathways, and playgrounds and other infrastructure schemes in the city. It is also liable for garbage dumping and preserving cleanliness, along with the supervision of the Health and Sanitation department.

How are the GHMC Tax Calculated?

To calculate GHMC taxes, GHMC uses the annual rental system to analyse property tax on residential and commercial buildings. Even though the building is not gaining any rent, the municipal body sets property tax based on its possibility to forge rent.

A specific tax rate is applied depending on the value linked to the property. To find the property’s annual rental value, GHMC uses a GHMC property tax calculator.

The GHMC property tax is estimated irrespective of whether the owner lives in the property or is on the rent. The tax accumulated relies on the following aspects-

• The location of the property
• The size of the property
• Whether the property is under construction or already constructed
• The owner’s gender and age

The GHMC takes into consideration two types of properties. The first is the residential property, and the second is the commercial property.

One must pay the GHMC property tax for both:

Residential Property Tax

The tax on these types of property is calculated by

Plinth area * rental value/month per sq.* 12 * slab rate – 10% devaluation – 8% library cess

The plinth area here directs to an entire built-up zone, which includes the covered areas, such as the garages and terraces. If the owner lives in the property, then rent per sq feet is selected for similar properties in the area, whereas if the property is rented, then the rent noted in the rental agreement is referred to. The rental charges for each month are calculated based on the protection tax, general tax, drainage tax, and lighting.

Commercial Property Tax

The tax on these types of property is calculated by

3.5 * plinth area sq. ft * Rental Charges/month Rs. per sq ft

Thus, this is how the GHMC of both types of properties are calculated.

Last Date to Pay the Tax, Fines for Late Payment and Other Compensations

• The last date for the half-yearly payment of these taxes is 31 July and 15 October.
• Late payment of taxes results in a levy of punitive interest, which is 2%per month on the unpaid amount.
• GHMC has also announced cash rewards for payments done before the prescribed date.

How to Pay the GHMC Property Tax Offline?

By visiting a Citizen Service Centre, MeeSeva counter, invoice collectors or branch of Bank of Hyderabad, GHMC property tax can be paid offline. The documents which are required to make the payment procedure are:

• Sale deed
• Certificate of occupancy
• Copy of the construction plan
• Cheque or demand draft drawn for the GHMC commissioner

How to Pay the GHMC Property Tax Online?

Following are the steps by which taxes can be paid online mode-

• Firstly log in to the GHMC website.
• Enter the Property Tax Identification Number (PTIN) and click "Know property tax dues."
• Confirm the details cited on the computer screen.
• Now, choose the method of payment and finish the transaction.
• After completing every single step, take the printout of the receipt.

What Will Happen When the GHMC Property Taxes are Delayed?

If the taxes are delayed, or someone cannot pay the tax on time, they should pay an interest of 2% per month. The GHMC property tax online calculator is also used to calculate the tax or use the formula determined to calculate the charges.

These were the details for someone who wants to pay their property tax.

What are the Exemptions or Concessions Suggested in Property Tax?

There is a specific property exempted from giving the GHMC tax. These properties are separated based on the rental values and also exempted if has some government-authorised special status.

Some circumstances where tax is not charged are-

• Property that costs a monthly market rental worth up to Rs 50
• If an ex-military serviceman owns the property
• If charitable institutions possess the property
• Worship places
• Schools providing courses till the tenth standard, identified by the Central Board of Secondary Education (CBSE) and different academic boards.
• Vacant premises can get the privilege of 50% after an audit by the tax officer.

Conclusion

Now we know that the GHMC property tax is a charge that every property owners of Hyderabad need to pay. The money collected via these taxes is used to enhance and maintain facilities and amenities and construct the region’s infrastructure.

The property tax is paid either online (via the GHMC website) or offline (via cheque or demand draft). A successful property tax history makes the case more powerful from a legal perspective in case of property arguments or disputes.