Know all about Property Tax in Hyderabad
The Greater Hyderabad Municipal Corporation (GHMC) presents the tax payers of this city with a very simple, yet effective property tax collection system. Like Chennai and other larger cities in India, it facilitates the citizens of Hyderabad with an option to make online as well as offline payment. Find below the details of the property tax system in Hyderabad.
How is Property Tax Assessed and Calculated?
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. For instance, there is a 100 per cent property tax exemption for properties that are owned by presently serving or ex-servicemen, religious places of worship such as temples, mosques, gurudwaras and churches, property owned by charitable institutions, properties with annual rental value of less than Rs.600, properties owned by recognized schools. A 50 per cent tax concession is offered on properties with vacant premises, subject to the official report submitted by the tax inspector.
Online Calculation: The easiest and the most convenient way to calculate property tax in Hyderabad is to leverage the online tax calculator facilitated by the GHMC at http://www.ghmc.gov.in/tax/calculationofpropertytax.asp You would require to input your circle number (area number with the help of a drop-down list) and your PTIN which is your unique fourteen digit (old PTINs) or ten digit (new PTINs) number.
Manual Tax Calculation for Residential Properties:The rate of property tax is dependent on the Annual Rental Value in Hyderabad. While the property tax rate is 30 per cent of the Annual Rental Value for commercial properties, the GHMC adopts a slab rate of taxation for residential properties. In very simple terms, the calculation is as follows:
The monthly rent of the property should be estimated. If the property is self-occupied, then the rent of other similar properties in the same locality is to be considered. If the property is tenanted, then the Monthly Rental Value (MRV) is to be determined with the help of the rental agreement. The formula for calculation of property tax is as follows:
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
| Range of Monthly Rental | General Tax | Conservancy Tax | Lighting Tax | Drainage Tax | Total |
| Upto Rs. 50/- | Exempted from payment | Exempted from payment | Exempted from payment | Exempted from payment | NA |
| Rs. 51-100/- | 2% | 9% | 3% | 3% | 17% |
| Rs. 101-200/- | 4% | 9% | 3% | 3% | 19% |
| Rs. 201-300/- | 7% | 9% | 3% | 3% | 22% |
| Above 300/- | 15% | 9% | 3% | 3% | 30% |
Manual Calculation for Non-residential or commercial properties: When compared with the tax calculation of residential properties in Hyderabad, the tax calculation of commercial properties is fairly simple. The Plinth Area and Monthly Rental Value should be estimated just as in the case of a residential property. The Monthly Rental Value is dependent on the zones or locality and can be got from the GHMC website. The property tax for commercial properties can be calculated using the following formula:
Annual Property Tax for commercial property = 3.5 × Total Plinth Area in sq.ft. × Monthly Rental Value per sq.ft.
The property tax rate for commercial properties such as ATMs, cellular towers and hoardings is maximum with a monthly rent of Rs.50 to Rs.70 per sq. ft. Conversely, the property tax rate for non-residential properties is a minimum with a monthly rental value of Rs 8 to Rs 9.50 per sq. ft.
Where to pay the Property Tax?
The GHMC accepts property tax payments through online as well as offline modes. You can choose to pay through your debit card/credit card/net banking on http://210.212.212.114/tax/taxdueshome_new.asp . You can also pay at any of the e-seva counters, online service delivery counters, citizen service centers, bill collectors, any of the State Bank of Hyderabad branches. The cheque should be drawn in favour of ‘Commissioner, GHMC’. The following link shows the addresses where the property tax bills can be paid at: http://www.commonfloor.com/
Last date for the payment of Property Tax
The last date for the payment of the half-yearly bill is usually 31st July and 15th October for the second installment.
Consequences in case of delay or non-payment
In case of a delay in the property tax payment, the GHMC levies an interest of 2% per month on the outstanding tax amount, which can accumulate to 24% per year.
The rate of property tax is dependent on the Annual Rental Value in Hyderabad. While the property tax rate is 30 per cent of the Annual Rental Value for commercial properties, the GHMC adopts a slab rate of taxation for residential properties. In very simple terms, the calculation is as follows:
The monthly rent of the property should be estimated. If the property is self-occupied, then the rent of other similar properties in the same locality is to be considered. If the property is tenanted, then the Monthly Rental Value (MRV) is to be determined with the help of the rental agreement. The formula for calculation of property tax is as follows:
