If you own a property anywhere in India then keep yourself financially prepared to pay property taxes for the same each year. But here’s the thing with property tax in India, each state's property tax differs from one another. However, if your current target is owning a property in Hyderabad then I have got you covered.

In this article, I will be simplifying property tax levied by Hyderabad city for you to plan your Hyderabad property tax payment in a better way.

 Let’s get started with- 

Summary

 Introduction to Property Tax in Hyderabad 

Residential Property Tax – Hyderabad

Commercial Property Tax – Hyderabad

Hyderabad Property Tax Payment - Online

Hyderabad Property Tax Payment - Offline 

 Hyderabad Property Tax - Exemptions 

Due date and Penalty - Property Tax in Hyderabad 

Hyderabad Property Tax - Rebates 

Hyderabad Property Tax - New Property with no PTIN 

New Property Self assessment - Online

 New Property Self assessment - Offline 

 Hyderabad Property Tax - Renovations 

 Introduction to Property Tax in Hyderabad 

 Greater Hyderabad Municipal Corporation (GHMC) is responsible for collecting both, residential and commercial property tax in Hyderabad. You will be liable to pay property tax each year whether or not you live in it or have rented it out to the tenants. The amount of property tax collected by GHMC will be used for maintaining the public services like repairing of potholes, roads, and construction

The formula to compute GHMC property tax is different for residential property and commercial property

Residential Property Tax – Hyderabad

 To calculate Residential Property Tax-

 Step 1: Determine Plinth area. It refers to the total built up area including balconies and garages

 Step 2: If your property is self-occupied, calculate the monthly rent per sq.ft of similar properties in your area. If your property is rented out, calculate the monthly rent per sq.ft. as per your rental agreement. This value will be your Monthly Rental Value (MRV) per square foot

 Step 3: Calculate the residential property tax. The formula to compute Residential Property Tax is as follows-

Annual Property Tax = Plinth area x monthly rent per sq. ft. x % of tax (as per GHMC) – 10% depreciation + 8% library cess

Monthly Rental Value (₹)

General Tax

( % )

Conservancy Tax ( % )

Lighting Tax

( % )

Drainage Tax ( % )

Total 

( % )

Up to 50

Exempt

Exempt

Exempt

Exempt

Exempt 

50 - 100

2

9

3

3

17

101 - 200

4

9

3

3

19

201 - 300

7

9

3

3

22

300 and above

15

9

3

3

30

Commercial Property Tax – Hyderabad

 To calculate Commercial Property Tax - 

 Step 1: Determine the Plinth Area. It refers to the total built up area including balconies and garages

 Step 2: Measure Monthly Rental Value ( MRV). It is determined by various factors like location of the building, type of construction, nature of use, age of the building. However, MRV is notified by GHMC 

 Step 3: Calculate the commercial property tax. The formula to compute Commercial Property Tax is as follows-

 Annual Property Tax = 3.5 x Plinth area x MRV in Rs. per sq.ft. 

  •  ATMs and cellular towers / hoardings are taxed at the same level as commercial property, with monthly rents of Rs.70 and Rs.50 per square foot, respectively. 
  •  The minimum monthly rent for educational institutions and hospitals is Rs.8 and Rs.9.50 per square foot, respectively.


Hyderabad Property Tax Payment - Online

  1.  Visit the GHMC website online payment portal
  2.  Enter the PTIN and click on ‘Know Property Tax Dues’. 
  3. You will then come across details of your arrears, taxable amount, interest on arrears, adjustments, etc. are mentioned. Review these to ensure everything is correct. 
  4.  Choose the mode of payment (credit card/ debit card/ net banking) to pay off your property tax

Hyderabad Property Tax Payment - Offline 

  1.  Draw a DD or cheque in favor of ‘Commission, GHMC’ 
  2.  Deposit the same at one of the State Bank of Hyderabad branches, citizen service centres, MeeSeva counters or with a Bill Collector

 Hyderabad Property Tax - Exemptions 

 You will be exempt from paying property tax in Hyderabad if any of the following points are applicable to you- 

  •  If the property is owned by Military servicemen or ex-employees
  •  It is a holy place or a place of worship like temples, mosques, churches etc. 
  •  It is a Government recognized school (up to class 10) 
  •  Property owned by charitable organizations 
  •  Property with a monthly market rental value of up to Rs.50
  •  If you as a landlord have an annual income of less than Rs.5 Lakhs

Due date and Penalty - Property Tax in Hyderabad 

  •  The last date to pay GHMC Property Tax in 31st July and 15th October
  • If you fail to pay your property tax on or before the due then you will be liable to pay 2% of interest per month

Hyderabad Property Tax - Rebates 

  •  The GHMC conducts a lucky draw for taxpayers who pay their taxes on time. A lucky draw prize amount of Rs.20,00,000 will be paid to one lucky winner who pays his taxes on time and enters the contest. 
  •  The GHMC has taken the lead in encouraging the development of "green buildings." Building owners who install rainwater harvesting systems and produce electricity using rooftop solar panels for power backup and heating will be eligible for tax incentives.
  • 50% concession will be given on properties with vacant premises, subject to official report submitted by tax inspector

Hyderabad Property Tax - New Property with no PTIN 

  •  For a new property, you will have to submit the house tax to the Telangana application with the occupancy certificate, sale deed to the relevant Deputy Commissioner, the official will then proceed for the assessment of the Hyderabad Property Tax. It will then be carried out by the GHMC Tax Inspector/ Municipal Commissioner/ Valuation officer after the inspection of the building 
  •  The officials will verify the legal issues such as the ownership and title of the property, issues involved with the property etc. and on completion of the same, GHMC property tax will be imposed based on the current rates of the property in your neighborhood. (In case it's a residential property the prevailing rates will, in case of non-residential fixed price.

New Property Self assessment - Online

  1.  Access the Self - Assessment form 
  2.  Enter your mobile number, click on Send OTP and enter the same
  3.  The Self-Assessment form will be displayed on your screen. Fill in the asked details
  4.  Browse and select the building permission, occupancy certificate and sale deed documents in PDF formation 
  5.  Check the declarations as applicable.
  6. Click Save. 

 New Property Self assessment - Offline 

 Submit your application to the Deputy Commissioner. 

  • The list of documents you must submit along with your application are as follows: Registered sale deed/gift deed/partition deed attested by a gazette officer. 
  •  Link documents attested by a gazette officer. Copy of the building sanction plan, occupancy certificate. 
  •  After receiving the online/offline request for self-assessment of non property, a tax inspector will inspect your property, verify the documents, and levies the tax.
  •  You will then get a unique Property Tax Identification Number (PTIN) with a new house number. 

 Hyderabad Property Tax - Renovations 

 If you alter the building/ house such as extend a portion of your home or build another floor, the door number and PTIN will be the same. Only the amount of property tax GHMC will increase. Contact the Deputy Commissioner at the GHMC Office to reassess the land.