Q: I have purchased newly constructed flat and registered it in June 2016. We have received property tax bill recently, I wanted to know how property tax gets calculated. One of my friend told me that property tax would apply after the period of 2 yrs from the date of approval of plan of building. Is this correct? what is the process. Any idea? Thanks in advance.
Every property is an asset which is taxable and the property tax is an annual amount paid by a property/land owner to the government. Have not heard that property tax is applicable after the period of 2 years.
For the assessment of taxation of property in Hyderabad, the GHMC takes into consideration the physical dimensions as well as other associated parameters of the said property. Although GHMC levies property tax on all properties that are located within the legal vicinity of the Corporation, the property tax rate might vary depending on the usage of the property. Annual Property Tax for residential property = Plinth Area × MRV per sq.ft. × 12 × (0.17-0.30) depending on the monthly rental value (dependent on the following slab list provided by the GHMC) – 10% depreciation + 8% library cess.