GHMC: Greater Hyderabad Municipal Corporation Property Tax

Introduction to Property Tax

Property tax is levied on real estate property owners in India. The state government imposes it yearly. The local government or the Municipal Corporation, whichever is approved in each state, collects this tax.

The term 'property' refers to land and any changes made to it.

The government appraises the worth of such properties and assesses the tax accordingly. The Municipality in a specific area is in charge of conducting this assessment and determining the tax due by a property owner. The taxes so collected are then used to maintain/provide the basic amenities and infrastructure facilities in the city.

Property tax can be paid either annually or semi-annually. This tax varies according to region, city, and state.

Introduction to GHMC Property Tax

Owners of properties in Hyderabad are liable to pay property tax to the Hyderabad Municipality body called Greater Hyderabad Municipal Corporation (GHMC) every year. The municipal body utilises these funds to facilitate better public services in Hyderabad. The GHMC uses annual rental value as the basis for collecting property tax in Hyderabad and also GHMC adopts a slab rate of taxation for residential properties. The GHMC provides a property tax calculator on its website which can be used to ascertain the approximate value of property tax by filling in the relevant details about your property. The exact value may vary based on the exact location of the building and other parameters.

Formula for GHMC Property Tax Computation

The formula to compute GHMC property tax is different for residential property and commercial property:

Residential Property Tax Computation

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

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

The plinth area is the total built-up area which includes balconies and garages. In order to determine the monthly rental value for self-occupied properties, rental of other similar properties in the same locality needs to be considered. In the case of let-out properties, rental value is to be determined with the help of the rental agreement.

Formula for GHMC Commercial Property Tax Computation

Annual Property Tax = 3.5 x Plinth Area in sq.ft. x Monthly Rental Value in Rs/sq.ft. 

Monthly Rental Value/Sq ft for commercial properties is fixed by GHMC based on taxation zones/ locality and type of construction and usage.

Due date, Penalty and Other Rewards

• The last date for the payment of half-yearly property tax is 31 July and 15 October
• Delay in the payment of property tax results in a levy of penal interest @ 2% per month on the outstanding amount.
• GHMC has been taking initiatives to encourage taxpayers to clear previous arrears and present payment. GHMC has in fact announced cash rewards based on a lucky draw for payment before the specified date for the year 2016-17

New Assessment of GHMC Property Tax

In case of new property, the application shall be submitted with the sale deed, occupancy certificate etc to the concerned Deputy Commissioners for assessment of property tax. The concerned tax inspector/Valuation Officer/Assistant Municipal Commissioner/Tax Inspector will inspect the building physically and also verify the legal title and litigation if any and assess the property tax as per prevailing rates of the residential and fixed rates of non-residential properties. A Unique Property Tax Identification Number (PTIN) is generated for the new assessment, with a new House Number.

Online Self-Assessment Scheme

• Online Self-Assessment Scheme has been introduced by GHMC.
• The property owner can submit an application for new assessment online by providing personal details of the owner, property details such as Building Permission Number, Occupancy Certificate Number, Locality Name, nature of the building, usage, plinth area, etc., based on which, approximate annual property tax will be displayed on the screen.
• The Online application is forwarded to the Deputy Commissioner Login. The concerned VO/TI will inspect the premises and levy property tax as per prevailing rates.
• A Special Notice will be issued to the owner duly allotting a new PTIN

Steps for Payment of GHMC Property Tax

Payment by online mode Property Tax Identification Number (PTIN) is given to every taxpayer for each property. PTIN number is unique Fourteen digits in case of old PTINs and Ten digits for new PTINs. You can enter this number on the website and make the payment online. Further, the GHMC website automatically displays the tax due of a property which has been given PTIN. You can view the same using PTIN and make the payment.

Step 1: Visit Online payment portal of the GHMC website:

Step 2: Enter your Unique PTIN and click on ‘Know Property Tax Dues’

Step 3: Verify details of arrears, property tax, interest on arrears, adjustments etc. and choose to make payment either via net banking, credit card or debit card

Step 4: This will take you to the payment gateway page. Login to Net Banking or enter your card details and complete the payment.

Payment by offline mode Payment of property tax can also be made at any of the Mee-Seva counters, citizen service centres, Bill Collectors, AP Online Service Delivery or at designated banks. The cheque/Demand Draft should be drawn in favour of ‘Commissioner, GHMC’

Exemption/Concession from payment of property tax

• As mentioned in the property tax rate slab above, properties with monthly market rental value of up to Rs 50 are exempt
• Properties owned by present or ex-military servicemen, owned by charitable institutions, places of religious worship and recognized schools are exempt
• 50% concession on properties with vacant premises, subject to official report submitted by tax inspector
• Tax rebates offered for buildings with rainwater harvesting systems and rooftop solar panels