GHMC Property Tax

In Hyderabad, property owners are required to pay house tax to the Greater Hyderabad Municipal Corporation. Though most Hyderabad residents prefer to pay their property taxes office, the civic body also has a website (https://www.ghmc.gov.in/), which property owners can visit to make online GHMC house tax payments.

GHMC calculates the property tax one must pay based on the type of occupancy and the total area of the property. GHMC also has stringent rules regarding property tax payments -- the civic body levies a 2% penalty on those making payments past the deadline.

GHMC house tax calculation

Before we explain this in further detail, let us start by telling you that property tax is different for residential and commercial spaces in Hyderabad. However, the final property tax to be paid on both the property types depends on the gross annual rental value. The final property tax also depends on other factors, such as the type of the property, the total area of the property, total built-up area, location, etc.

GHMC property tax calculated on residential properties

To calculate the total payable GHMC tax on your residential property, follow these simple steps:

• Measure the total built-up area on your property. The total built-up area includes the area of all covered spaces, such as garages and balconies. So, do not forget to include these while calculating the total built-up area.
  

Once you know your total built-up area, the next thing you must find out is the average rent-per-square-foot in the area in which your property is located. This will give you your monthly rental value per square foot (MRV).

Once you have these figures, calculate the GHMC residential property tax using the formula:

GHMC annual residential property tax = Gross Annual Rental Value (GARV) x (17% – 30%) Slab rate to be determined based on MRV as fixed by GHMC – 10% depreciation] + 8 % library cess

If you do not know how to calculate the gross annual rental value (GARV), use this formula:

GARV = Plinth area x Monthly rental value in Rs./ sq ft x 12

GHMC property tax calculated on commercial properties

To calculate the final tax on your commercial property, follow these steps:

• Measure the total built-up area or the plinth area for your commercial property.
• Every year, the GHMC releases notifications, which state fixed monthly rent per square foot for different areas. Refer to these notifications to figure out the MRV for your property.

Once you have these values, use this formula to calculate your final GHMC commercial property tax.

Annual commercial property tax = 3.5 x plinth area in sq.ft. x monthly rental value in Rs/ sq.ft.

A few things to keep in mind while calculating property tax for commercial spaces in Hyderabad.

• For hospitals and educational institutions, the GHMC keeps the monthly rental value at the lowest. For educational institutions, the MRV per square foot is Rs. 8 and for hospitals, it is Rs. 9.50. 
• ATMs and cellular towers draw high MRVs. The monthly rental value per square foot is Rs. 70 for ATMs and Rs. 50 for hoardings and cellular towers. 

GHMC tax exemptions

Though all non-agricultural lands and buildings are taxable in Hyderabad, sometimes, certain types of properties can attract some kind of concessions or tax exemptions and some types of properties are wholly exempt from taxation in the city.

For instance, properties owned by current or retired military servicemen are wholly exempt from GHMC tax. Similarly, buildings with thetotal rental value not exceeding Rs. 600 per year are exempt from taxation in the city. Similarly, places of worship do not attract any form of GHMC tax. Further, government-recognized educational institutions up to class 10th are also completely exempt from taxation in Hyderabad.

Rebates and penalties

• As mentioned before, late payment of taxes draws a late payment fee of 2% on the bill value. 
• In Hyderabad, owners who practise rainwater harvesting and use solar power for power backup get tax incentives.