Online Property Tax Paying Manual of Hyderabad

With Democracy in India, there is a need to develop, re-develop, ensure, and re-ensure all the necessities of the general population’s lives. With increasing facilities, increased demand for funds, and to meet those demands, the Government of India decided to impose a tax on all the goods and services availed by the population. With time, single taxes bifurcated into many branches like taxes on food and beverages, property tax, and more. The government uses all the taxes paid by the citizens for the betterment of the community, society, and the country. For example, plot Tax is a tax levied on the property owners of a particular area that lies under the jurisdiction of a specific Municipal Corporation. Likewise, the people of Hyderabad are required to pay the tax of the property owned by them to the GHMC, which stands for Greater Hyderabad Municipal Corporation, annually. This GHMC online property tax payment is imposed on the landowners to deliver basic facilities related to the land and its infrastructure development.

GHMC property tax payment is now an easy and convenient process through the GHMC Property Tax Online Payment portal, which allows the citizens residing under the particular provision to pay the GHMC Property Tax Online. The way tax is imposed on every commodity nowadays is crucial in making the tax transaction easier and convenient for the general public. No one is exempted and no one becomes a defaulter. The citizens should be guided appropriately about the rules and regulations of the particular tax which they are expected to pay.

Property tax levied on any land has certain fulfillment criteria. The authority taking responsibility for collecting tax from the population could provide all the necessary benefits to the landowner or property owner. 

GHMC Plot Tax Calculation Criteria

To pay the property tax online in Hyderabad, proper plot calculation is done by the authority of GHMC. Property tax is imposed on both residential and commercial buildings. Even the vacant buildings are obliged to pay the rent to the authorities according to the property’s potential to generate rent. Therefore, every property has its value attached to it.

Tax Rates of GHMC Property

*Rates are inclusive of drainage,  lighting, and conservancy tax.

Mechanism of Land Tax Calculation in Hyderabad

The GHMC property tax is imposed on a particular property after conducting a complete series of surveys, including the Plinth area per square feet, i.e., areas including balconies, lawns, parking, etc., of the entire building.

Age Rebate on Building 

Let us take some figures to understand the age rebate on different properties, the first and foremost rebate is on the buildings that are more than 15 years old with a 10% depreciation.

So, the annual rental value of the property could be calculated by:

Generating the sum of:

Rs 15,000+Rs 13,500

(after subtracting 10% or Rs 1,500 from the building value)

So, the sum will be Rs 28,000

Hence, the total annual rental value = Rs 28,000.

As the monthly price of the property surpasses Rs 300, the 30% tax bit would be applied. On this amount, a library charge of 8% has to be implemented.

Property tax  30% of Rs 28,000 = Rs 8,400

On the amount we have got, 8% library cess has to be inflicted.

8% of Rs 8,400= Rs 672

Total property tax per annum: Rs 8,400+672 = Rs 9,072

The Procedure of Generating PTIN for the payment of GHMC Property Tax

PTIN stands for Property Tax Identification Number, a 10- digit number required for initiating the payment process. There can be a 14- digit PTIN for the properties which have surpassed a specific time limit and are now regarded as old.

Generation of PTIN

The whole PTIN generation is a sequential process in which the taxpayer must apply to the City Deputy Commissioner and copies of their sale agreement and possession certificate papers. The concerned authority then physically verifies all the related legal records and the property, after which the PTIN and the house number are issued in the name of the landowner.

Generation of PTIN in Online Mode

Generation of PTIN online for making GHMC property tax payment is initiated by generation of PTIN through the “Online Self Assessment Scheme”  according to which the taxpayer needs to visit the official website and click on ‘Online Services’ to come to ‘Self Assessment of Property’. After that, the individual needs to provide all the personal and property details, which should include information about the locality, occupancy certificate number, building permission number, nature of the building, usage, etc. After the submission of the details, the database provides the user with the approximate yearly property tax on the website page. Following that, the application is forwarded to the Deputy Commissioner, which is considered, followed by physical verification of property. And, then, PTIN is issued to the owner.

Reissuing of PTIN (if misplaced/forgotten)

If the user somehow forgets or misplaces his/her PTIN, they need to visit the GHMC site and click on the ‘Enquiry’ section. Then from the appearing drop-down menu, the user needs to select the column ‘Property Tax’, which will lead the user to the slide ‘Search Your PTIN’. Next, the user needs to enter their name, circle number, village name, and door number on this search menu. Finally, after filling in all these necessary details, the user needs to click on the ‘submit’ option. After that, PTIN will be reissued, and the user can now pay their GHMC property tax.

Stepwise procedure for the payment of GHMC property tax online

Step:1 The user needs to visit the GHMC website from various options on the menu bar, select ‘Online Payments’ and proceed by selecting the ‘Property Tax’ option from the dropdown menu.

 Step:2 Now, the user needs to enter their PTIN and then click on the option ‘Know Property Tax Dues’.

Step:3 Now, the user is led to a page where they need to verify the details, interest on arrears, including arrears, adjustments, etc.

 Step:4 After verifying the details, the user needs to select the mode of payment that can be either net banking or credit/debit card.

 Step:5 Once the payment is done, the user will get a receipt for their payment. They can now print a copy of the receipt by using their PTIN.

Here you cannot take a print of the receipt for the tax paid offline.

 Offline Mode of Property Tax Payment

The GHMC property tax payment in offline mode can be made easily by visiting the nearest MeeSeva counter, bill collectors, or any State Bank of Hyderabad branch. However, the taxpayer needs to provide the following papers to make the payment:

• The deed of the sale.
• A certificate of Occupancy.
• A copy of the building map.
• A cheque or a demand draft is drafted in favor of the GHMC commissioner.

Any individual interested in paying the GHMC property tax offline should be careful in providing the correct legal documents to the authority to avoid any severe actions by the concerned administration.

Schedule of payment of GHMC Property Tax

The GHMC property tax payment is scheduled half-yearly for July 31 and October 15 each year.

What is the penalty for late payment of GHMC property tax?

The taxpayer is expected to pay a penalty interest of more than 2% per month on outstanding amounts if there is a delay in payment.

Exemption from the payment of GHMC property tax

• Any land/property which can generate rent of only up to Rs 50 per month.
• Any land/property owned by retired military personnel.
• Property occupied by organizations that are under charity.
• Owners with annual earnings of less than Rs 5 lakhs.
• Owners of unoccupied property get a 50% allowance.

Postponement of property registrations in Telangana

Due to the pandemic across the country and Lockdown imposed because of the second wave, the state government has seized all the registrations regarding properties in Telangana. Therefore, for citizens registered on the Dharani portal from May 12 to May 21, 2021, their slots will be re-allotted by the government for any property-related registrations. As registration requires four to five citizens per transaction, leading to heavy crowding, these rules have been imposed to avoid these circumstances under this pandemic.

GHMC Property Tax Rebate 2020

For the financial year of 2020-21, the Telangana State Government decided to offer its citizens a rebate in property tax, announced on November 14, 2020. A Diwali bonanza offered taxpayers a rebate of 50% in property tax for citizens who pay a tax of Rs 15,000 a year in the GHMC region and up to Rs 10,000 in other municipalities. By taking this step, the government estimated that this decision would provide benefits to up to 13 lakh property owners in Hyderabad.

Telangana Government also started the ‘One Time Settlement Scheme’ under which if the taxpayer clears all the GHMC Property Tax Dues in one go, they are entitled to a 90% rebate on the whole property tax arrear. The deadline to pay tax under this scheme was September 15, 2020, extended for 15 days more. Under the program, the GHMC has collected Rs 131.79 crores from 60,919 properties.

Tax collection for GHMC Property

Despite the ongoing pandemic, the citizens are still punctual with their property tax payment because of which the GHMC has been able to collect an amount of Rs 1,189 crores in the time period between April 2020 to December 2020 as property tax, which is in total Rs 140 crores more than the last year’s entire collection. The GHMC has more than 16.92 lakh properties and is expected to increase the number shortly.

GHMC Property Tax Parishkaram

With every scheme or policy, there come hidden queries with every new aspect, which is very important to address timely to avoid any confusion with the clients and address the taxpayers. Therefore, the GHMC had a Property Tax Parishkaram program weekly to dissolve any query related to GHMC Property Tax payment conducted on Sundays between January 25, 2021, and March 28, 2021.

One-time settlement plan for defaulters of property tax

A one-time settlement scheme (OTS) is applicable for the people living in Telangana’s Urban Local Bodies, including the GHMC, and the due date to pay the tax under this scheme was extended till March 31, 2021. Under this scheme, the defaulters are given a rebate of 90% on the entire interest amount if the taxpayer pays all the due amount of tax in one go.

Conclusion

GHMC is one of the largest Municipal corporations in our country, covering Hyderabad city of the Telangana State. The authority uses all the funds collected through GHMC property tax for providing basic facilities to the citizens such as the cleanliness of the streets, proper garbage disposals, building and maintenance of roads, highways, footpaths, health and sanitation facilities, etc. GHMC covers approximately 650 square kilometers, which generates a great amount of property tax and makes the general public comfortable in paying all the taxes on time. Therefore, GHMC launched its online portal to pay GHMC property tax online, which eventually led to the increased collection of property tax.

Also, Read                   Telangana Property Tax

FAQ’S

Who is exempted from paying the GHMC property tax?

Exemption from paying the GHMC property tax is for the property with a monthly rental amount of up to Rs 50, property of past military personnel, property controlled by charitable organizations, owners with a yearly income less than Rs 5 lakhs, owners of vacant property get a 50% concession.

By what time did Property Tax Parishkaram be conducted?

 Property Tax Parishkaram was conducted on all Sundays between January 25 and March 28, 2021.

What is the penalty for property tax defaulters?

The taxpayer must pay a penal interest of 2% per month on the outstanding value in a delay beyond the GHMC’s due date of payment.

How many properties are registered under GHMC?

60,919 in total are the properties registered under GHMC that are eligible to pay the property tax.

In what mode can the taxpayer generate the PTIN?

PTIN can be generated in both online and offline modes.