GHMC property tax in Hyderabad

As a property owner, you are required to pay tax on property you own. The state government utilises this for the upkeep and development of public services and infrastructural projects in the state. This includes maintaining civic amenities like drainage systems, roads and shared public spaces, and constructing schools and parks. Property tax differs based on location and, more specifically, the Municipal Corporation you fall under. For instance, if you live in Telangana, you must pay tax to GHMC or the Greater Hyderabad Municipal Corporation.

Property tax is collected by local municipal bodies and hence, the amount you pay, and the mode of payment depends upon the particular formulae used and the provisions made. The GMHC employs different formulae for non-residential and residential properties and accepts tax payments via both online and offline modes. This means that you can make a property tax online payment in Telangana, as mentioned earlier, by simply following a set of instructions.

If you are an individual who comes under the purview of the GMHC, here’s what you need to know about GMHC tax and how to pay it.

About GHMC property tax

The Greater Hyderabad Municipal Corporation (GHMC) collects property tax annually from property owners to provide better civic amenities and improve the city’s infrastructure. You need to pay GHMC property tax irrespective of whether you occupy the property or give it out on rent. The tax collected depends on location, size, whether the property is under construction or ready for occupancy, and services provided by the municipality in that particular area. Further, the gender and age of property owners may also be considered as senior citizens and female owners may be charged a lower rate.

How to calculate the GHMC property tax?

You can calculate the property tax applicable on residential and commercial properties by either using the GHMC tax calculator online or manually with the formula. If you opt for the online route, then once you enter the required property details, you will be able to see an estimate of the property tax due. Alternatively, you can use the following formulae to compute your tax payments.

How to calculate residential GHMC property tax?

You can use the following formula when calculating residential GHMC property tax.

Property tax on residential property = Plinth area * (monthly rent per sq. ft. x 12) * (slab rate) - 10% depreciation + 8% library cess.

Here:

The plinth area refers to the total built-up area
The slab rate is determined by the monthly rental value

How to calculate the commercial Hyderabad property tax?

To calculate property tax for a commercial property in Hyderabad, you can use the following formula.

Property tax on commercial property = 3.5 x Plinth area in sq. ft. x Monthly Rental Value in Rs. per sq. ft.

Here, the monthly rental value is determined by GMHC based on factors such as taxation zones.

Steps for the assessment of a new property

You can request for property assessment either online or offline. Here’s how:

1. How to request for property assessment offline

To initiate the assessment for a new property, you need to make an application and attach documents such as the sale deed and occupancy certificate to the Deputy Commissioner. Upon receiving your application, the concerned authority will then physically inspect the property, verify the details provided by you, and calculate the property tax per the prevailing slab rate. Once this is done, you will be provided with a unique Property Tax Identification Number (PTIN) and a new house number.

2. How to request for property assessment online

To make your request online, follow the steps listed below.

• Login to the official GHMC website and click on the self-assessment form.
• Enter your mobile number and generate an OTP.
• Next, fill in the details required in the self-assessment form. Once done, upload PDF copies of the sale deed and occupancy certificate.
• Click on the ‘Save’ tab.

Once your application is received, the concerned authority will inspect the property, verify the details provided by you, and calculate property tax according to the applicable slab rate. Thereafter, you will be provided with a unique Property Tax Identification Number (PTIN) and a new house number.

Property tax on renovated building

If at any point in time you decide to renovate the building or make additions to it, the property tax payable will increase and will be decided as the prevailing slab rates at that time. However, the PTIN and house number will remain the same. To reassess the property tax amount, you can contact the Deputy Commissioner in person.

Steps to pay GHMC property tax

You can either process the GHMC tax payment online or offline by following these steps.

1. Steps for GHMC property tax online payment

To pay property tax online in Hyderabad, follow these steps:

• Login to the official GHMC website and click on the online payment portal
• Enter your PTIN number and click on ‘Know property tax dues’
• Verify the details mentioned on the screen
• Once done, select your preferred mode of payment and complete the transaction

2. Steps for GHMC property tax offline payment

You also make the payment offline by visiting any of the following centres.

• MeeSeva Centres
• Citizen Service Centres
• GHMC Bill Collectors
• Any State Bank of Hyderabad branch

Now that you know about the GHMC property tax payment procedure, use the information to pay property tax on time. Doing so not only helps you contribute to the development of the state, but also works to your advantage. For instance, in case of any property disputes, the property tax receipt can help prove ownership, resolving the conflict. Also, a property tax receipt is an important document that lenders look for to approve a request for a loan against property. A loan against property usually offers a high sanction that makes it easy to meet big-ticket goals with ease.