The Greater Hyderabad Municipal Corporation (GHMC) has come up with an amendment in calculation of monthly rental value of residential properties for calculation of property tax, in order to do away with human intervention.
However, the new method obliterates the difference between the privileged and the underprivileged home owners in terms of rate per sft. Approval of the GHMC Council has not been sought for the amendment in calculation.
Unlike earlier where the monthly rental value would be fixed based on the type of property, in the latest method, the rate is applicable uniformly irrespective of the kind of property. Accordingly, the MRV will be ₹1.25 per square foot if the property is in Jubilee Hills, and ₹1 per sft if its located in other circles.
Previously, the MRV ranged between 60 paise to ₹1 per sft., based on the type of property, officials informed. If the property was a tin roofed shed, lowest rate would be applicable, and if it is a luxury flat, the highest.
Property tax rate is based on the slab of the MRV, and calculated on the annual rental value, going up to 30% at its highest.
In case of Vacant Land, the Vacant Land Tax is generated online at the rate of 0.50% of the property’s registration value.
Officially announcing the online property tax assessment system at the time of registration, a statement from the GHMC said any existing property, which was already assessed for property tax or vacant land tax, gets automatically mutated in the name of the new owner without having to change the existing Property Tax Identification Number or Vacant Land Identification Number.
If the registered property is new or not assessed so far, a new PTIN/VLTIN is generated by the Registrations Department and sent to GHMC online.
After assessment of property, the owner will receive SMS with two links, one to download the assessment copy and the other for payment of tax.
The new system will ensure that all the properties registered are assessed without human intervention, and removes pendency in GHMC offices, the note informed.
