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Property tax is an annual expense that all property owners have to bear. Typically an annual levy, this expense has to be paid to the municipal body that exercises control over the locality where the property is situated. This amount is used for betterment and maintenance of amenities and facilities and for infrastructure development in the area.
Property owners in Hyderabad pay property tax to the Greater Hyderabad Municipal Corporation (GHMC). The collected funds are invested in maintenance of the city’s infrastructure and its development. All property owners in Hyderabad are legally obliged to make the GHMC tax payment once a year, unless they enjoy GHMC property tax exemption, because they belong to a specific category of owners.
Discussed in this article are aspects such as GHMC property tax online payment, property tax slab, liability and steps to pay your property tax in Hyderabad.
GHMC property tax calculation
The GHMC uses the annual rental system for calculation of property tax on residential, as well as commercial buildings. Even if the building is not actually earning any rent, the municipal body levies property tax, based on its potential to generate rent. Depending on the value attached to the property, a specific tax rate is applied. To find out the annual rental value of your property, you could use the GHMC property tax calculator online.
GHMC property tax rates
Monthly rental value of property | Tax rate* |
Rs 50 | Nil |
Rs 51-100 | 17% |
Rs 101-200 | 19% |
Rs 201-300 | 22% |
More than Rs 300 | 30% |
*Rates are inclusive of lighting, drainage and conservancy tax.
How to calculate property tax in Hyderabad
The GHMC conducts surveys of every area under its purview and fixes a monthly rent on the plinth area per sq ft. Plinth area is the entire built-up area of your building, including balconies, parking, lawns, etc. You could click here to find out the monthly rent on the plinth area per sq ft on your building.
Check out property rates in Hyderabad
GHMC property tax calculation example
How the monthly rental value is decided
You could arrive at the monthly rent by multiplying the plinth area with the state-notified monthly rent value.
In case of a 500 sq ft home, its monthly value would be Rs 2,500, assuming the monthly value per sq ft is Rs 5. By now multiplying the amount by 12, one can arrive at the annual value of the property – Rs 30,000 in this case.
The annual value of the property must be divided in two equal parts – i.e., between the land value and the building value, as has been prescribed by the municipal body. This is done to decide the age of the building and extend rebate on tax payment.
In our example, thus, the annual value of the property would thus be:
Rs 15,000 in case of land, and
Rs 15,000 in case of building
Age rebate on building
0-25 years | 10% |
26-40 years | 20% |
More than 40 years | 30% |
Let us assume that a 10% depreciation is allowed on our building value, as it is 15 years old.
The annual rental value of the property would thus be:
Rs 15,000+Rs 13,500 (after reducing 10% or Rs 1,500 from the building value)= Rs 28,000
So, our total net annual rental value would be Rs 28,000.
Since the monthly value of the property exceeds Rs 300, the 30% tax slab would be applicable. On this value, a library cess of 8% has to be applied.
Property tax would be: 30% of Rs 28,000 = Rs 8,400
On the value, we have now reached, 8% library cess has to be imposed.
8% of Rs 8,400= Rs 672
Total property tax for the year: Rs 8,400+672 = Rs 9,072
How to generate PTIN to pay GHMC property tax?
Before starting the process, the taxpayer should be ready with his 10-digit Property Tax Identification Number (PTIN). In case of old properties, the GHMC allots a 14-digit PTIN.
How to generate PTIN
Owners of new properties have to get a PTIN generated, by giving an application to the city deputy commissioner along with copies of their sale deed and occupancy certificate. After physically verifying the property and all the legal documents, a PTIN and house number is issued to the owner by the authority.
How to generate PTIN online
The PTIN could also be generated through ‘Online Self Assessment Scheme’ introduced by the GHMC.
Go to https://www.ghmc.gov.in/Propertytax.aspx, and click on ‘Online Services’ to land on ‘Self Assessment of Property’.
Now, provide all personal and property details, including locality, building permission number, occupancy certificate number, nature of the building, usage, plinth area, etc. After you key in the details, the approximate annual property tax will be displayed on the screen.
The online application will now be forwarded to the deputy commissioner. The official concerned will visit the premises and a PTIN number will be issued to the owner.
What if you have forgotten your PTIN?
In case you have forgotten your PTIN, log on to the GHMC website and click on the ‘Enquiry’ section. Under this section, you will find the sub-section ‘Property Tax’. On clicking this, you will reach the page ‘Search Your PTIN’.
On the page that appears, you will have to key in your circle number, name, village name and door number and click ‘submit’ to get your PTIN.
After this, you can proceed to pay your GHMC property tax.
Steps to pay GHMC property tax online
Step 1: Log on to the GHMC website. Go to ‘Online Payments’ and select the ‘Property Tax’ option.
Step 2: Enter your PTIN and click on ‘Know Property Tax Dues’.
Step 3: On the page that now appears, verify the details, including arrears, interest on arrears, adjustments, property tax amount, etc.
Step 4: Select your mode of payment. You could use your net banking or debit card or credit card, to make the payment.
Step 5: After the payment is made, you will get a receipt for your payment. You could print a copy of the receipt using your PTIN. Note here that you cannot generate the online receipt for tax paid offline.
How to pay property tax offline?
The GHMC property tax can be paid offline, by visiting a MeeSeva counter, Citizen Service Centre, bill collectors or any branch of State Bank of Hyderabad. You will have to carry the following documents to make the payment:
- Sale deed.
- Occupancy certificate.
- Copy of the building plan.
- Cheque or demand draft drawn in favour of the GHMC commissioner.
When to pay property tax in Hyderabad?
The last date for half-yearly GHMC property tax payment is July 31 and October 15 of every year.
Penalty on late payment of GHMC property tax
The tax payer has to pay a penal interest of 2% per month on the outstanding amount, in case of delay beyond the GHMC property tax due dates.
Concession/ exemption from paying GHMC property tax
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News updates
Telangana government has not paid property tax to GHMC for past 3 years
The GHMC is losing significant revenue in property tax collection and it is not only on account of property holders in the city. Reports say the Telangana government owes the GHMC significant property tax on government buildings in Hyderabad. In fact, the state has not released any money towards property tax payment in the past three years, say reports.
GHMC property tax collection severely hit in June 2021
In the backdrop of the second wave of the Coronavirus pandemic, property tax collections by the GHMC have taken a severe hit. As against the property tax collection of Rs 100 crores in June 2020, the municipal body in Greater Hyderabad area has collected only Rs 23 lakhs, as on June 16, 2021.
Telangana defers property registrations due to lockdown
Keeping in view the ongoing Coronavirus pandemic and the lockdown imposed to contain the spread of the COVID-19 second wave, the Telangana government has suspended property registrations during the lockdown period. Subsequently, the time slots of those citizens who booked a slot on the Dharani portal between May 12 and May 21, 2021, will be rescheduled.
The registration of documents in Telangana requires the presence of at least four or five persons per transaction, which could result in movement of a large number of people during restricted hours and crowding at the mandal offices.
Property tax payment waiver 2020
Offering a Diwali bonanza to tax payers in the state, the Telangana state government, on November 14, 2020, announced a 50% rebate in property tax, for those who pay tax of up to Rs 15,000 a year in the GHMC area and up to Rs 10,000 in other municipalities. The rebate would be applicable for the financial year 2020-21. According to government estimates, the decision is likely to benefit nearly 13 lakh property owners in Hyderabad.
Earlier, the Telangana government has extended its one-time settlement scheme, which crossed its deadline on September 15, 2020, by another 15 days, following requests from various stakeholders amid the prevailing Coronavirus pandemic. Under the one-time settlement scheme, the state is offering a 90% waiver on the accumulated interest arrears on property tax, if the resident clears the outstanding bill in one go. Under the scheme, the GHMC has earned Rs 131.79 crores from 60,919 properties, so far.
GHMC property tax collection increases amid the pandemic
Despite the prevailing conditions, the GHMC has collected over Rs 1,189 crores in the period between April and December 2020 (as of mid-December) as property tax, an increase of Rs 140 crores when compared to the same period in 2019. The GHMC has over 16.92 lakh properties within its limits.
Property Tax Parishkaram
With an aim to address the grievances of the citizens and to improve the quality of service, the GHMC is conducting a Property Tax Parishkaram programme. The weekly programme for resolution of various disputes with respect to property tax assessment, will be carried out on all Sundays falling between January 25 and March 28, 2021.
One-time settlement scheme for property tax defaulters extended till March 31, 2021
The Telangana state government has extended its One-Time Settlement (OTS) scheme for property tax defaulters, till March 31, 2021. Under the scheme, tax defaulters will be given a waiver of 90% on the accumulated interest amount, if they clear their property tax dues accumulated up to 2019-20 in one go. However, they will still have to pay the entire principal amount along with 10% interest. The scheme is applicable to all properties under the urban local bodies in the Telangana, including the GHMC.
FAQs
How to calculate GHMC property tax Hyderabad for shops?
The GHMC fixes a monthly rental value to a commercial property for taxation purposes, based on its exact location, usage, type and construction. Below is the formula to calculate property tax on your commercial property: Annual property tax = 3.5 x plinth area in sq ft x monthly rental value in Rs/sq ft.
How to find out my PTIN to pay property tax in Hyderabad?
Log on to the GHMC website https://www.ghmc.gov.in/Propertytax.aspx and click on the ‘Search Your Property Tax’ tab under the section ‘Quick Links’.
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