Continuing our series on empowering the Indian homebuyer, today our legal expert guides us on how to pay property taxes in Hyderabad.
The owners of any property in the limits of the Municipal Corporation of Hyderabad are liable to pay property tax to the Greater Hyderabad Municipal Corporation (GHMC) on an annual or semi-annual basis for providing maintenance of various utilities such as roads, sanitation, street lighting, etc. It is levied on both, residential and commercial buildings.
Vacant lands without any buildings are exempt from payment of property tax in India. The payable tax is dependent on many factors such as the location, size of the property, and type of construction.
The property tax is levied on the ‘Annual Rental Value’ (ARV) of the property, which is calculated differently for residential and commercial properties. Where the property is self-occupied, the rate of rent on similarly valued properties in the same locality is considered.
Where it has been tenanted, the rental agreement to determine the ARV.
A slab rate method is used for residential properties, whereas a uniform rate of 30% is levied on the annual rental value of commercial properties.
The Property Tax Calculator feature on the GHMC Website may be used to calculate the annual payable tax based on various inputs such as the circle, locality, sub-zone, classification and use of the building, occupation type, age, plinth area and other such details.
It also requires a confirmation as to whether the property has an occupation certificate or not before the calculation of the tax. Read more on the calculation of the property tax here.
A full exemption from property tax has been granted to properties owned by serving or ex-service men. Religious places of worship, charitable institutions, and recognised educational institutions that provide education till class 10 are completely exempt from the levy of property tax.
For vacant premises, a tax inspector conducts an inspection and prepares a field report verifying the same, further to which, a ‘vacancy remission’ of 50% is granted on the payable tax.
Residential buildings occupied by the owner whose annual rental value does not exceed Rs. 600 are also exempted from the tax.
Online payment service
The GHMC website provides a quick and convenient manner for payment of property tax online using a unique ‘Property Tax Identification Number’ (PTIN) allotted to you. The online portal can also be used to check any property tax dues.
The payment may also be made at any State Bank of Hyderabad branch, or at e-seva counters and citizen service counters set up at different points in the city.
The last dates for payment of half-yearly taxes are 31 July and 15 October, after which a fine of 2% is levied on the outstanding amount, which could go up to 24%.