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