Property taxes have for long been a critical source of revenue for the state governments and every property owner in each state is liable to pay these taxes. Imposing and collection of these taxes are entrusted to the state’s municipalities for increased efficiency in carrying out municipality development initiatives.
The GHMC or Greater Hyderabad Municipal Corporation levies a property tax on the city’s property owners annually.
The Citizen Service Centres in the GHMC head office along with all 19 circles ensure hassle-free payment of GHMC property tax for the residents of Hyderabad. GHMC also levies property tax for the residents of Telangana. The tax calculation depends on various factors such as the size of the property, location, available amenities, stage of construction, etc.
Steps to pay property tax to GHMC
Payment of GHMC property tax can be done via both online and offline modes. The online method is explained in detail to help you in GHMC property tax payment.
Step 1 – Log in to GHMC’s official website and browse to the online portal for tax payment.
Step 2 – Verify your identity with PTIN and check your dues by clicking on the ‘Know Property Tax Dues’ option.
Step 3 – Complete verification of all details provided on the page.
Step 4 – Once the verification is complete, you can select your mode of payment and pay accordingly.
If you choose GHMC house tax payment mode as online, you will have to provide your card details or net banking details to complete the process. On the contrary, if you choose offline payment, you will need to approach one of the following centres in person.
- Citizen Service Centres.
- Mee Seva Centres.
- Bill Collectors of GHMC.
You can also pay your GHMC property tax at one of these centers by directly approaching one of these and completing the required formalities. Make sure to store your tax payment receipt safely as it can serve an important document needed to apply for a loan against property and such other advances.
Nevertheless, before initiating the payment process, you must have a clear idea of how to compute the tax. Below mentioned are the ways in which you can calculate the tax on your residential or commercial property in Hyderabad.
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Computation of tax for properties under GHMC
- Computation for residential property
Utilize the following formula when calculating GHMC property tax for a residential property, whether rented or self-occupied.
Property tax = Plinth area X slab rate X (monthly rent/sq. ft. X 12) – depreciation at 10% X library cess at 8%.
Alternatively, you can utilise the GARV formula, whereby GARV or Gross Annual Rental Value is equal to plinth area X Monthly Rental Value (Rs./sq. ft.)
Hence, GHMC property tax for a residential property = GARV X (slab rate – depreciation at 10%) + library cess at 8%.
Here, plinth area is equal to the total built-up area for the house, and slab rate is based on the Monthly Rental Value.
- Computation for commercial property
The following formula helps in the calculation of commercial property tax under GHMC.
Property tax = 3.5 X plinth area (sq. ft.) X Monthly Rental Value (Rs./sq. ft.)
Also, property tax calculation for a renovated building differs from the regular. In this case, during renovation, if any addition is made to the property, the amount of property tax will increase as per the slab rate applicable.
While this was all about the payment of GHMC property tax, you must ensure to pay the taxes in time to keep yourself off unnecessary scrutiny by municipal bodies. Lastly, you can also access the property tax calculator available on GHMC’s official website. Enter the desired value to compute the payable tax for your house for the concerned year.