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Guide on GHMC Property Tax

Last Update Date : April 04, 2019
Estimated Read Time: 5 min


Taxes are the most important source of revenue for the Government. One amongst them is Property Tax. Property Tax is imposed and collected from the owner of the property. The State Government levies property tax and distributed to various municipalities for the betterment and maintenance of several localities of the state. Every state has different rules and regulations considering the property tax which will be further utilised for the maintenance of local roads, drainages, public parks, etc.

What is Property and Who must Pay Property Tax?

Property here refers to all the tangible real estate properties concerning the ownership held by any individual. Property includes houses and its premises, office buildings and houses let out on rent for the third parties.

Types of Property:

In India, properties are classified into four types. Based on that taxes are estimated by the Government and charged to individuals.

  • Land/site (without any construction and improvement)
  • Construction or improvement made to land (like buildings, godowns, immovable manmade creations)
  • Personal Property (includes movable and immovable properties like vehicles, apartments, )
  • Intangible property (like goodwill, copyrights, )

However, property tax in India is to be paid on ‘real property’ which includes land and improvements on land on which government estimates the monetary value of such property and tax is assessed accordingly. Municipality of particular area takes the responsibility of assessment and determines the value of the property tax.  Property tax can be either paid on annual basis or semi-annual basis. The tax rates differ from municipality to municipality.

Likewise, Greater Hyderabad Municipal Corporation (GHMC) is the municipality that takes care of taxes and maintenance of Hyderabad.

Greater Hyderabad Municipal Corporation (GHMC):

Individuals owning property in Hyderabad are liable to pay property tax to the municipality of Hyderabad, i.e. GHMC. GHMC is a municipal body that is entitled to levy taxes to the individuals. GHMC utilises these funds to facilitate better services to the citizens of Hyderabad.

GHMC has set its slab rates for the calculation of property tax. GHMC uses the annual rental value as the basis for collecting property tax in Hyderabad.

GHMC provides online and offline services for the payment of property tax. On the website of GHMC, it provides property tax calculator to ascertain the approximate value of tax.

GHMC Property Tax Computation:

Property tax is calculated differently for residential and commercial properties

GHMC Residential Property Tax Computation:

Formula for calculating residential property tax.

Annual Property Tax= Gross Annual Rental Value (GARV) * (17%-30%) slab rate to be determined based on MRV as fixed by GHMC – 10% depreciation + 8% Library cess.

GARV= Plinth area * Monthly Rental Value in Rs/sq ft * 12.

Plinth area is a total area including the premises (balconies and garages). To determine monthly rental value for self-occupied properties, rental of other similar properties in the same locality needs to be considered. In case of let-out properties, rental value is to be determined with the help of the rental agreement.

Monthly Rental ValueGeneral Tax Other Tax Total
Up to 50ExemptExemptExempt
300 and above15%15%30%

GHMC Commercial Tax Computation:

Formula for calculating commercial property tax.

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

The Monthly Rental Value for a Commercial property depends only the locality. It differs from area to area.

Minimum and Maximum Taxes:

The property tax for cellular towers, ATMs and hoardings is the maximum with a monthly rent of Rs. 50-Rs. 70 per sq. ft.

Hospitals, educational institutions and hostels are levied at the minimum with a monthly rent of Rs. 8 and Rs. 9.50 per sq. ft.

Steps for Payment of GHMC Property Tax:

Online Self-Assessment Method:

GHMC gives a privilege of paying property tax online. Every tax payer is given a unique identification number called Property Tax Identification Number (PTIN) for each property. In case of old users, the PTIN is of 14 digit, and for new users, it is of 10-digit number. Let us see the process/steps to make the payment online.

  1. Visit GHMC Online portal
  2. Enter your unique PTIN and click on ‘Know Property Tax Dues’
  3. Verify the adjustments and arrears. Then proceed to make payment via credit card, debit card or net banking modes.
  4. This will take you to the payment gateway page. Enter necessary details and complete your payment.

Offline Payment Method:

Property tax can be paid offline at service centres, Mee-Seva Centres, Bill Collectors, AP Online Service Delivery or any State Bank of Hyderabad Branch. The Check or Demand Draft can be drawn in favour of ‘Commissioner, GHMC.’

Due Dates & Penalties:

Although GHMC provides all the facilities to the citizens of Hyderabad, there are few deadlines and penalties for payment of property tax. Below are the dates and penalties.

  • Last date for half-yearly payment of property tax is 31st July and 15th
  • In case of delay in payment of property tax, interest will be charged @ 2% per month as a penalty.

GHMC New Property Tax Assessment:

The individuals are asked to submit the sale deed, occupancy certificate, etc. after purchasing a new property to area Deputy Commissioners for the property tax assessment. Further, concerned Tax Inspector/Assistant Municipal Officer/Valuation Officer will verify the legal title and litigation (if any) and inspect the building physically and access the property tax according to the rates of residential and non-residential properties. After the completion of this process, a unique PTIN will be issued for the new assessment of the new property.

However, GHMC has introduced Online Self-Assessment of new property called Online Self-Assessment Scheme. The process is as follows:

  1. An individual owning a new property can apply for new assessment through Online website of GHMC by providing his/her personal details, details of the new property, Occupancy Certificate number, Locality, etc. Considering the information provided by the tax payer, the assessment is done, and tax liability is displayed in the screen.
  2. The application must be forwarded to the concerned Deputy Commissioner, and further inspection of the property will be carried by the Valuation Officer/Tax Inspector.
  3. After the inspection is completed, the tax liability will be calculated according to the rates.
  4. A unique PTIN will be generated for the new property.

Exemptions & Concessions of GHMC Property Tax:

GHMC has few exemptions and concessions for the tax payers.

  • Properties with monthly market rental value of up to Rs.50/- are exempt from paying property tax.
  • Properties with vacant premises are given a concession of 50% after the Tax Inspector providing an official report.
  • 100% exemption is given to the properties owned by ex-servicemen, religious properties, charitable institutions, recognised
  • GHMC provides special discounts for the payments done before a particular date as mentioned by GHMC.

People Also Ask:

Q. How can I receive my property tax receipt?

A. Click on ‘Tax Receipt’ option and generate the challan. Check with the details mentioned on the screen and print.

Q. Where do I find my PTIN or property tax number?

A. Click on ‘Search your property tax’ on the left menu. Choose your GHMC Circle. Enter your House number details. Click on ‘Search’. PTIN is displayed on the screen.

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CA Shreya Oturkar
Shreya is a tax advisor at H&R Block (India) with intensive experience in SME taxation and audit. She holds an advanced post graduate qualification in accounting and is highly skilled in financial analysis and reporting. Apart from her professional achievements, Shreya is a talented artist with a flair for free-hand sketching!

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