GHMC Property Tax in Hyderabad

GHMC Property Tax refers to the property tax levied by the Greater Hyderabad Municipal Corporation (GHMC) on properties within its jurisdiction. It is an annual tax imposed on all property owners in Hyderabad to fund civic amenities, infrastructure development, and maintenance of services like sanitation, roads, and street lighting.

GHMC property tax rates

GHMC property tax rates in Hyderabad vary based on property type, location, usage (residential or commercial), and built-up area. Rates are revised periodically, and details are available on the official GHMC portal for accurate calculation.

Required documents for Hyderabad property tax

To ensure a smooth property tax payment process in Hyderabad, ensure you have the following documents ready:

1. Property ownership proof: A copy of the property title deed or sale agreement to verify ownership.
2. Aadhaar card: A valid Aadhaar card for identity verification of the property owner.
3. Property address details: Complete and accurate address of the property for assessment purposes.
4. Previous property tax receipts: Copies of last year’s property tax receipts, if applicable.
5. Property measurement details: Documentation specifying the land or building measurements for property tax calculations.
6. PAN card: A valid PAN card for tax assessment and compliance.
7. Occupancy certificate: Necessary for newly constructed properties or those recently renovated.
8. Recent utility bills: Copies of electricity or water bills to confirm residency or property usage.

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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.

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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. 

How to download GHMC property tax payment receipt?

After paying your GHMC property tax in Hyderabad, it is important to download the payment receipt as proof of transaction. Follow these simple steps to access your receipt online:

1. Visit the official GHMC property tax portal.
2. Click on the “Payment / Receipt” section.
3. Enter your Property ID or Assessment Number used during the payment.
4. Provide additional details like zone, ward, or owner’s name if required.
5. Select the financial year for which the payment was made.
6. Click on Search to view your payment details.
7. Once the payment record appears, click Download / Print Receipt.
8. Save the receipt as a PDF or print a hard copy for official use.

Key features of GHMC property tax:

GHMC property tax is levied based on property type, location, and size. It offers online payment facilities, annual assessment, tax exemptions for certain categories, and convenient digital record management for property owners.

1. Applicable properties: The tax applies to all residential, commercial, and vacant properties under GHMC's area.
2. Assessment: The property tax is calculated based on factors such as the plinth area (built-up area), the property's usage (residential or commercial), and the location's rental value.
3. Tax calculation: The tax is generally calculated using a formula based on the Annual Rental Value (ARV) of the property. For residential properties, the ARV is determined based on the market rent or estimated rent of the property. Commercial properties are taxed at higher rates due to their revenue-generating potential.
4. Payment: Property owners can pay their GHMC property tax online via the GHMC website, at designated citizen service centers, or through mobile apps. There are options for annual or half-yearly payments.
5. Penalties for non-payment: Late payment of property taxes can attract penalties and interest, usually ranging from 2% to 24% per annum.
6. Exemptions: Certain properties may be exempt from GHMC property tax, including places of worship, government-owned properties, and properties owned by charitable organizations, subject to specific conditions.

The GHMC property tax is vital for funding the city's infrastructure development and maintaining public services in the Hyderabad metropolitan area.

How to pay GHMC property tax Online?

1. To start with, visit GHMC's official website
2. Once there, select the 'Property Tax Payment' option on the 'Menu'
3. You will be asked to enter your PTI number. Enter the number and click on submit
4. Once you have entered your PTI number, you will be taken to the next page, where you will be asked to provide other details, such as total taxable amount, detail of arrears, etc. Make sure all the information provided is correct
5. Select your payment method. The options available on the website include credit cards, debit cards, and net banking. Select your desired option and make the payment

GHMC tax exemptions

GHMC offers the following property tax exemptions for residential and commercial properties in the city:

• Educational institutions up to the 10th standard, duly registered with government records, receive a 100% tax exemption.
• Landlords with an annual income below Rs. 5 lakh can claim exemptions on GHMC property tax.
• Places of worship, such as temples, churches, mosques, gurudwaras, monasteries, and similar institutions, are fully exempt.
• Properties owned by servicemen or ex-servicemen are not subject to taxation.
• Owners residing on their property with an annual rent below Rs. 600 are exempt from property tax.
• Properties that remain unoccupied are eligible for a 50% reduction in the annual GHMC property tax.

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.

Property Tax Identification Number (PTIN) is a unique identification number assigned to your property. It serves as a legal record for your property and is necessary when you're applying for a loan against property, as banks or lenders often require proof of tax payment and property ownership.

To generate a PTIN for your property, you will need to submit your property documents, including the registered sale deed, and an application Municipal Corporation office. After reviewing your application, the office will issue a unique PTIN for your property.

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