Hyderabad, with an annual GDP growth of 8.47%,is one of the ten fastest-growing cities in India, as per the report by World Economic Forum. Several organisations have their offices in Hyderabad, attracting hundreds of individuals from across the country. Nonetheless, to contribute to this fast-paced economy, city dwellers need to make property tax payment to GHMC or Greater Hyderabad Municipal Corporation along with other tax liabilities, including income tax.
Unfortunately, the total collected amount of GHMC property tax(till May 31, 2020) reached only Rs. 331 crore, quite low compared to last year’s Rs. 535 crore. Under GHMC, there are almost 16 lakh properties, among which the residential structures account for nearly 13.5 lakh. However, only 3.92 residents have paid property tax until now.
Hence GHMC is working tirelessly to encourage people to pay their share of tax on time. They are doing so by introducing a hassle-free online mode of property tax payment option.
Property tax calculation for GHMC
The residents of Hyderabad are provided with both online and offline facilities that allows them to calculate GHMC tax. To calculate this property tax of both residential and commercial properties, they can either use the GHMC property tax calculator or follow the existing formula. To calculate the tax online, they need to declare the property type, valuation and other essential details in the appropriate page of the official website.
In case one wants to calculate GHMC housing tax offline, he/she can employ the following formula.
Property tax (residential area) = Plinth area * (monthly rent per sq. ft. x 12) * (slab rate) – 10% depreciation + 8% library cess.
GHMC tax for commercial area = Plinth area in sq. ft. x 3.5 x Monthly Rent in Rs./sq. ft.
However, in this case, GHMC determines the monthly rental value after reviewing different factors like taxation zone.
Besides, calculating tax payable and property assessment is also a crucial part that determines the tax amount.
How to request for a property assessment in Hyderabad?
New residents under GHMC must request a property assessment to determine the value of their property. It also comes in handy if they wish to collateralise their property to borrow funds and achieve different financial goals.
Top HFCs (Housing Finance Companies) offer secured loans like loan against property with competitive interest rates and flexible tenor. They also provide pre-approved loan offers to existing customers that makes the entire process of loan approval less time consuming, requiring minimal documentation. Such an offer is also available for financial products such as home loans. You can check your pre-approved loan offer instantly by entering your name and contact information online.
Following is the method to apply online for a property assessment.
- First, you need to visit the GHMC official website and access the self-assessment form.
- Then enter your mobile number to generate an OTP.
- Now fill up the self-assessment form duly.
- Furthermore, you need to upload the soft copies of the occupancy certificate and sales deed.
- Now click on the “save” tab.
- Once you submit the form online, GHMC officials will inspect your property and verify the details. Based on the inspection, they will decide your property tax after applying the slab rate. On successful completion, they will assign you a unique PTIN or Property Tax Identification Number and provide you with a new house number.
Once the property assessment is done, you need to learn about how to pay GHMC house tax on time.
What is the procedure of paying property tax in Hyderabad?
You must also remember that among the list of documents needed to apply for a loan against property, the receipt of property tax is a mandatory one. Therefore, you must keep these tax payment documents up to date for instant loan approval.
Following is the step-by-step procedure for paying property tax to GHMC online.
- First, you need to login to the official website of GHMC and select an online payment option.
- Enter your PTIN number and click on the tab “know property tax dues”.
- Now verify the details you have provided.
- After verification, choose your preferred online transaction option and make the payment.
To do the same thing offline, follow the below-mentioned procedure.
To pay GHMC property tax offline, you need to visit any of these offices below.
- MeeSeva Centres
- GHMC Bill collectors
- Citizen Service Centre
- Any office of State Bank of Hyderabad
As a matter of fact, GHMC increases the amount of property tax when you renovate your property as well. However, GHMC decides the revised amount in that case.
Paying property tax (or any other tax in that matter) makes you a responsible citizen. On top of that, if you are servicing a loan against property, you must know about how you can avail tax benefits on LAP and save a considerable amount every year.