Property tax plays a crucial role in local government revenue and is a vital income source. If you own a property in the Greater Hyderabad Municipal Corporation (GHMC) area, paying property tax is mandatory.
However, most property owners lack understanding of the procedure and either pay more than necessary or miss the payment deadline. Fortunately, this guide is here to assist.
This article will walk you through every step required to calculate and pay property tax in GHMC. Our guide will encompass every property tax aspect, from its fundamentals to the required documents and online payment procedures.
After following this guide, you will have an in-depth knowledge of how property tax operates in GHMC and ensure you pay the appropriate amount within the due date.
Therefore, if you want to gain insights into property tax regulations in GHMC, continue reading this guide to get started on the right foot!
What is GHMC Property tax?
The Greater Hyderabad Municipal Corporation (GHMC) is the governing body responsible for collecting house and property taxes from the residents of Hyderabad.
The state government heavily relies on the revenue generated from property taxes paid by the citizens of this region. These funds are then utilized by municipal bodies to enhance the living conditions in the city by maintaining public facilities.
Property owners, whether they own residential or commercial property, must pay GHMC property tax annually. Those who own residential property for personal or rental purposes are subject to paying the yearly tax to the state government. On the other hand, properties used for commercial purposes must also pay the tax levied on them.
The municipal corporation employs the entire tax revenue collected to address various aspects of infrastructure development within the city. This includes repairing potholes, installing street lights, developing parks and footpaths, and improving the city’s infrastructure.
It is also responsible for GHMC to maintain the city’s cleanliness and ensure the garbage disposal process is seamless. The Health and Sanitation department of the corporation is also managed effectively.
Current Rates of Property Tax Hyderabad:
1. Current Rates of Property Tax Hyderabad:
- Monthly Rental Value: Up to Rs.50
- General Tax: Exempt
- Conservancy Tax: Exempt
- Lighting Tax: Exempt
- Drainage Tax: Exempt
- Total Tax: Exempt
- Monthly Rental Value: Rs.51 – Rs.100
- General Tax: 2.00%
- Conservancy Tax: 9.00%
- Lighting Tax: 3.00%
- Drainage Tax: 3.00%
- Total Tax: 17.00%
- Monthly Rental Value: Rs.101 – Rs.200
- General Tax: 4.00%
- Conservancy Tax: 9.00%
- Lighting Tax: 3.00%
- Drainage Tax: 3.00%
- Total Tax: 19.00%
- Monthly Rental Value: Rs.201 – Rs.300
- General Tax: 7.00%
- Conservancy Tax: 9.00%
- Lighting Tax: 3.00%
- Drainage Tax: 3.00%
- Total Tax: 22.00%
- Monthly Rental Value: Rs.300 and above
- General Tax: 15.00%
- Conservancy Tax: 9.00%
- Lighting Tax: 3.00%
- Drainage Tax: 3.00%
- Total Tax: 30.00%
2. Age Rebate on Building:
- 0-25 years: 10% rebate
- 26-40 years: 20% rebate
- More than 40 years: 30% rebate
How to Calculate Property Tax in Hyderabad?
Calculating GHMC property tax is an essential process for homeowners in Hyderabad. To determine the amount of tax you owe to the Greater Hyderabad Municipal Corporation, follow these three steps.
- Firstly, note down the Plinth Area (PA) of your property. This is the total covered area of your house, including garages, balconies, and storerooms. Once you have this measurement, you can move on to step two.
- If you’re living in the property, you should find out your area’s current rent per square foot. This will help you determine your property’s Monthly Rental Value (MRV) per square foot. If you rent the property to someone else, you can use the rent-per-square-foot mentioned in the rental agreement. Once you’ve determined the MRV, it’s time for the final step.
- Apply the formula below to determine your GHMC property tax amount:
Annual Property Tax for Residential Property = PA x MRV (per [LINK].) x 12 x (0.17 – 0.30) depending on the monthly rental value in the below table – 10% depreciation + 8% library cess.
- This formula considers factors such as the Plinth Area, the MRV, and the monthly rental value. Depending on these factors, the final GHMC property tax amount will vary. Remember that there’s also a 10% depreciation and 8% library cess to be included in your calculations.
Following these steps, you can easily determine your GHMC property tax amount and avoid non-payment penalties.
Note: When taxing commercial properties, such as ATMs and cellular towers/hoardings, the maximum monthly rent per square foot has been set at Rs.70 and Rs.50, respectively. Any commercial property falling under these categories cannot be taxed above this rate.
On the other hand, educational institutions and hospitals have a minimum monthly rent per square foot for taxation purposes. Educational institutions have a set minimum rate of Rs.8 per square foot, whereas hospitals have a minimum rate of Rs.9.50 per square foot.
How to Pay GHMC Property Tax Using GHMC Portal?
The property tax service offered by the Greater Hyderabad Municipal Corporation (GHMC), Government of Telangana, has become more accessible to citizens through a digital interface. By providing a convenient online payment option, GHMC enables taxpayers to search and download their property bills, make payments online, and receive payment receipts.
- To initiate the process, taxpayers must visit the official GHMC website at Welcome to GHMC. From there, they must click the ‘Online Payments’ tab and select ‘Property Tax’ to access the necessary portal.
- Upon accessing the portal, users must input their Property Tax Identification Number (PTIN) and registered mobile number to view their dues and other relevant details. To proceed, the user must click the ‘Get OTP’ option, which generates a one-time password (OTP) sent to their registered mobile number.
- To complete the payment process, the user must enter the received OTP and click ‘Submit OTP.’ Afterward, all details regarding arrears, interest on arrears, adjustments, and property tax amounts will be displayed for verification.
- After verifying the information, taxpayers must select their preferred payment mode: net banking, debit, or credit card. A receipt will be generated upon successful payment, which taxpayers may save or print for future reference.
GHMC has simplified paying property tax for taxpayers by providing this hassle-free digital interface. This innovation benefits both parties involved, and one can anticipate more users turning to this mode of payment.
How to Generate GHMC Property Tax PTIN Number?
Paying property taxes in the Greater Hyderabad Municipal Corporation requires knowing your PTIN or Property Tax Identification Number. New properties have a 10-digit PTIN, while old properties are assigned a 14-digit PTIN.
To obtain a PTIN for a new property, owners must apply to the city deputy commissioner with copies of their sales deed and occupancy certificate. A physical verification process will be conducted before issuing the PTIN and house number to the owner.
- To generate a PTIN and pay property tax online in GHMC, users should visit the official website https://ghmc.gov.in/.
- Click the ‘Online Services‘ option and select ‘Self Assessment of Property Tax.’ Users must enter their mobile number and click ‘Send OTP’ to generate an OTP code. Users must provide their registration details after entering and submitting the code by clicking the ‘Submit OTP’ button.
- The registration details include selecting the sub-register office from the dropdown list and entering the registration document number and date. Property details such as the owner’s name, father’s name, address, etc., should also be filled in, and the sale deed document must be uploaded before clicking the ‘Submit’ button.
- Once the online application is submitted, it will be forwarded to the deputy commissioner for approval. A physical inspection will be conducted at the premises, and if everything checks out, a PTIN number will be issued to the owner.
Following these simple steps, paying property taxes online in GHMC has become easier and hassle-free.
How to Add/Update the Phone Number for GHMC Property Tax ID?
Are you a property owner in GHMC and need to add or update your mobile number for your property tax ID? Look no further than the official website of GHMC. Here is a step-by-step guide on how to add or update your mobile number for GHMC property tax ID:
- First, visit the GHMC website at https://ghmc.gov.in and click “Property Tax” on the Top Menu Bar under “Our Services.”
- Hover your mouse over “Property Tax” to see GHMC and click on it. You will see an option to “Add/Update Mobile Number.” Click on it.
- This will take you to another page for your PTIN Mobile Number Updation. You must select your area under Circle and enter the Assessment Number.
- After entering these details, click the Search button to view your Property Tax details. Find your property and tap on the Update button next to it.
- Enter the mobile number you wish to update and request an OTP. Once received, enter the OTP to authorize the mobile number for PTIN updation. Then click on the Confirm Button.
- Congratulations! Your PTIN Mobile Number updation is now complete and linked to your Property Tax Account.
In just a few easy steps, you have successfully updated your mobile number for GHMC property tax ID and ensured that you stay updated on all relevant information.
How to Pay GHMC Property Tax Offline?
To make your GHMC Hyderabad property tax payment offline, you have four options for payment centers.
These include the 72 MeeSeva centers within the GHMC boundary, the Citizen Service Centre in each of the 19 circles, the GHMC Bill Collectors, and any State Bank of Hyderabad branch.
Depending on which is convenient, you can select one of these payment centers to pay your property tax in person.
However, before you make the payment, there are specific documents that you need to have with you.
- Firstly, you will need to carry the sale deed of the property. This document will help authenticate that you are indeed the owner of the property and liable to pay the property tax.
- In addition to the sale deed, you must bring the occupancy certificate you received from the builder before moving into the property. This certificate certifies that the property is legally inhabitable and compliant with all relevant regulations.
- You must also carry a copy of the property architect’s building plan. This will serve as a blueprint of the structure, which helps assess the property’s tax liability.
- Lastly, you must bring a cheque or a demand draft in the name of the GHMC commissioner to make the payment. These modes will help facilitate the payment process and ensure the amount is received securely and accurately.
By following these guidelines, you can make your GHMC Hyderabad property tax payment in person and comply with the required documents for the transaction.
Penalty On Delaying Payment:
The Greater Hyderabad Municipal Corporation (GHMC) levies property tax on property owners within its jurisdiction. Failure to pay the tax on time results in a penalty for late payment.
This penalty is levied on the outstanding amount and amounts to an additional 2% per month until the entire sum is cleared. The objective of the penalty is to encourage taxpayers to make their payments on time, as late payments can cause a strain on the municipal corporation’s finances.
The concession from Paying GHMC Property Tax:
Property tax payment is mandated by law for all non-agricultural lands, buildings, and structures. However, specific properties are entitled to special concessions or exemptions.
Below, we will highlight some examples of properties that are granted exemptions or concessions:
- One group of properties that enjoy a 100% exemption from property tax are educational institutes registered up to the 10th standard in government records. This provision acknowledges the role played by these institutions in providing education to society.
- Another group of properties granted concessions are those owned by landlords with an annual income of less than Rs 5 Lakh. This exemption recognizes these landlords’ financial constraints and seeks to relieve the financial burden of paying property tax.
- In addition to educational institutes and landlords, places of worship such as temples, churches, mosques, gurudwaras, monasteries, and others are also granted a 100% exemption from property tax. This concession recognizes these religious establishments’ importance in promoting the community’s cultural and spiritual values.
- Furthermore, properties owned by military personnel or former servicemen are considered non-taxable. This exemption acknowledges the service rendered by these individuals to the country and provides a means of support in recognition of their contribution.
- Owners residing in their properties with an annual rent of less than Rs 600 are exempted from paying property taxes. This provision acknowledges the affordability concerns of individuals living in such properties.
- Lastly, owners with unoccupied properties are granted a 50% concession on their GHMC Hyderabad property tax. This concession seeks to incentivize property owners to put their unoccupied properties to use and contribute to the city’s overall growth.
Frequently Asked Questions:
Ans. Residential properties in Telangana are subject to house tax ranging from 17% to 30% based on the monthly rentals and age of the building.
Ans. If you have renovated your building and added an additional floor or other spaces like a garden or garage, your GHMC property tax will increase. However, the property’s house number and Property Tax Identification Number (PTIN) will remain the same.
Ans. If you forget your PTIN, you can easily retrieve it by visiting the official website and accessing the ‘Enquiry’ section. Look for the ‘Property Tax’ option, leading you to the ‘Search your PTIN’ feature. Provide the correct details, and you can retrieve your PTIN.
Ans. The due dates for payment of GHMC Property Tax in Hyderabad are July 1st and October 15th.
Ans. Yes, you can pay your GHMC property tax offline. You can visit any of the four mentioned locations to make the payment.
Wrapping Up:
Owning a property is a special status for those who put in countless hours of hard work. There is no greater feeling than signing those official documents and receiving the keys to your new home.
Nevertheless, with this new chapter in your life comes a whole set of responsibilities that can be overwhelming. One of the most crucial obligations that cannot be overlooked is paying property taxes, as failure to do so can have grave consequences.
For Hyderabad residents, paying GHMC property taxes every year is mandatory. However, navigating through legal jargon and complex transaction procedures can be intimidating.