circular(revision of property tax in ghmc_final)

GREATER HYDERABAD MUNICIPAL CORPORATION

Office of the Commissioner GHMC, Hyderabad

CIRCULAR - I

Roc.No.1394/CT1/CTS/GHMC/2012 Dated ___7.2012

Sub:- Taxes – General Revision of Property Tax in Greater Hyderabad Municipal Corporation with effect from 01-10-2012 – Certain instructions issued – Regarding

Ref:- 1) This office Circular –I Roc No.1531/CT1/CTS/MCH/2006 dated 20-2-20062) This office Circular –II Roc No. 152/CT1/CTS/MCH/2006

dated 26-4-20063) G.O.Ms.No.635, M.A, dt.27-8-2007 of MA & UD Department

4) This office ROC No. 1479/CT1/CTS/GHMC/2007-08 dated 01-2-2008 relating to gist of final notification showing the monthly rent fixed per Sft. Of plinth area in respect of non- residential buildings

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The attention of all Zonal Commissioners and Deputy Commissioners, GHMC is invited to the orders and instructions issued in the references one to fourth cited. In the reference third cited Government have issued directions to all Municipal Corporations including GHMC to revise assessment books completely invoking the provisions of Hyderabad Municipal Corporation Act, 1955 and implement revised rates only with respect to non-residential properties with effect on and from 1st

October, 2007. In the reference fourth cited, GHMC has issued a gist of final notification showing the monthly rent fixed per Sq. ft. of plinth area in respect of non-residential buildings. Property tax was revised in respect of non-residential buildings in GHMC w.e.f. 1-10-2007.

2. As per section 226(3) of GHMC Act, 1955 a new assessment book shall be prepared atleast once in every five years. It is proposed to revise the property tax completely in respect of residential and non-residential buildings w.e.f. 1-10-2012 as per the provisions of GHMC Act, 1955 and Hyderabad Municipal Corporation (Assessment of Property Tax) Rules 1990. Further, it is proposed to rationalize the existing assessment of property tax with the following objectives:

i. To arrive at area based unit rates for monthly rent for all categories of buildings in GHMC

ii. To evolve a rational method in the assessment and levy of property tax incorporating the principles of equity, fairness and simplicity.

Revision of PT w.e.f. 01-10-2012

iii. To fix the assessments uniformly for similar buildings used for similar purposes and situated in the same locality.

iv. To reduce the element of discretion and to avoid arbitrariness in the assessment of tax.

v. To simplify the procedure for assessment of property tax

vi. To delink the provisions of Rent Control Act from the method of assessment of property tax.

vii. To improve buoyancy in the property tax revenues.

viii. To make tax administration efficient, transparent and effective in the levy of property tax.

3. The following instructions are issued to all Zonal Commissioners and Deputy Commissioners of GHMC for undertaking general revision of property tax to come into effect from 01.10.2012.

4. General Revision (Assessment) of Property Tax:

4-1. Section 212 of HMC Act, 1955, as amended by A.P. Act 20 of 1989 w.e.f. 01-11-1990 envisages determination of Annual Rental Value of lands and buildings with reference to the following factors:

1) Location of the Building2) Type of Construction3) Plinth Area4) Age of the building5) Nature of Usage

4-2. Hyderabad Municipal Corporations (Assessment of Property Tax) Rules, 1990 as emended by G.O.Ms.No.596, MA, dt.20.11.2006 provides a detailed procedure for assessment of property tax as shown hereunder.

i. Division of Municipal Corporation into Zones

ii. Classification of Buildings based on type of construction into 6 categories

iii. Nature of use of the buildings

After classification of buildings based on their type of construction, they will be further classified based on the nature of usage into 22 categories or more:

iv. Survey of prevailing rental values of 20 percent of rented buildings. Fixation of monthly rental value (MRV) per sq.ft of plinth area for various categories of buildings in each zone construction-wise and nature of usage-wise based on survey.

v. Publication of a draft notification in Form-A providing MRV per sq. ft of plinth area for various categories of buildings in all zones calling for objections and suggestions from the public

vi. Consideration of the objections and suggestions received from the public

vii. Publication of a final notification showing monthly rent fixed per sq. ft of plinth area in Form – A.


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viii. Preparation of property tax assessment of buildings in Municipality in Form-B

ix. Service of Special Notices

x. Receipt of complaint petitions

xi. Disposal of complaint petitions

5. Division of Municipal Corporation into Zones

5-1. As per the final notification dated 1-2-2008 issued by GHMC showing monthly rent fixed per sq. ft. of plinth area in respect of non-residential buildings, GHMC was divided into following taxation zones for the assessment of property tax.

Administrative zones

Circle No. (old no.) / Name

No. of Taxation Main zones

No. of Taxation Sub-zones

1 2 3 4South I 9 27

II 7 21Rajendranagar 6 18

Central III 6 18IV 6 18V 11 33VI 3 9

East Kapra 5 14L.B. Nagar & Gaddinannaram

14 42

Uppal Kalan 3 9West Kukatpally 15 45

Patancheru & Ramachandrapuram

2 6

Serilingampally-I 3 9Serilingampally-II 3 9

North Alwal 4 12Malkajgiri 6 18Quthbullapur 5 15VII 7 21

Total 115 344

5-2. The first step in the implementation of revision of property tax is to divide the entire Municipal area into convenient territorial zones for the purpose of fixation of monthly rental value per sq.ft of plinth area. A team is constituted with the following Officers at circle level to submit proposals for division of Municipal Corporation into territorial zones to the Head Office for the purpose of fixation of monthly rental value for various categories of buildings.

i. Deputy Commissioner

ii. Executive Engineer

iii. Assistant City Planner


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5-3. The following factors shall be kept in view for division of the Municipal Corporation into territorial zones for fixation of monthly rental value and revision of property tax thereon.

i. Availability of civic amenities like water supply, drainage, roads, street lighting.

ii. Educational & Medical Institutions

iii. Markets & Shopping Centres

iv. Parks & Play Grounds

v. Banks, Postal Services and Public Offices

vi. Factories & Industrial Areas and

vii. Such other relevant factors

5-4. As the rents fetched on the main roads varies from the rents fetched on internal roads, lanes and by lanes in a zone, the circle level team may provide for sub-categorization of localities in a zone for fixing separate rents for such buildings as shown hereunder:

i. Buildings abutting main roads.ii. Buildings abutting internal roads.iii. Buildings abutting lanes and by lanes.

5-5. Natural boundaries shall be followed while dividing the Municipal Corporation into territorial zones. Geographical contiguity shall be maintained in the division of Municipal Corporation into territorial zones.

5-6. The committee constituted at the circle level shall study the notification already issued in the year 2008 dividing the Municipal Corporation into Taxation Zones and ensure that the zones and sub-zones are formed as per the circular instructions now issued and may suggest changes in the composition of zones wherever necessary.

5-7. Draft notification in Form-A (Part-I) showing localities and areas included in each zone and sub-zone with door nos. included in each locality shall be submitted along with proposals for division of the circle into zones by the above team to the Head Office. Further a Town map dividing the circle into zones shall also be submitted with the proposals.

5-8. Form A notification consists of two parts. Part - I :

i. localities included in the zone and sub-zonesii. Door Nos. included in each locality

Part - II:i. Rental data locality-wise, nature of construction-wise and nature of

usage-wise.

Copy of Form-A is enclosed in Annexure-I.


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5-9. A Committee is constituted at Head Office with the following officers for verification of the proposals in Form-A submitted by the circle level teams dividing the circles into taxation zones / sub-zones..

i. Special Commissioner -- Chairmanii. Addl. Commissioner(Finance) -- Convenoriii. Addl. Commissioner(Plg.) -- Memberiv. Addl. Commissioner(H&S) -- Memberv. Addl. Commissioner(Electrical) -- Membervi. Chief City Planner -- Membervii. Engineer-in-Chief -- Memberviii. All Zonal Commissioners -- Members

5-10. The Committee at Head Office shall scrutinize the proposals received from circle level teams and finalize the division of GHMC into taxation zones into sub-zones within 15 days from the date of receipt of the proposals.

6. Classification of buildings based on type of construction

6-1. After division of Municipal Corporation into zones, all buildings located in a zone shall be classified into 6 categories based on the type of construction as shown hereunder:

i. RCC Posh Buildings

ii. RCC Ordinary Buildings

iii. Madras Terraced or Jackarch roofed or stone slabs or slates roofed buildings

iv. Mangalore tiled roofed or asbestos roofed or G.I. roofed buildings

v. Country tiled buildings

vi. Any other building not covered above.

6-2. Classification of building based on nature of usage

After classification of buildings based on their type of construction, they will be further classified into the following categories based on the nature of usage:

i. Residential

ii. Shops and Shopping Complexes

a) Shops

b) Shopping Complexes

iii. Public Use

a) Offices

b) Banks

c) ATMs

d) Super Special Hospitals and Nursing Homes


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e) Others Hospitals & Clinics, Dispensaries and Diagnostics centers

f) Educational Institutions

g) Hostels

h) Gyms

iv. Commercial use

a) Star Hotels

b) Bars & Restaurants

c) Other Hotels, Lodges, Restaurants, Guest Houses

d) Godowns

e) Petrol Bunks

f) Cellular Towers/ Hoardings

v. Industrial use i.e., Factories, Mills, Workshops and other industries

vi. Places of Entertainment

a) Multiplex and similar theatres

b) Other cinema theatres, clubs and other places of entertainment

c) A.C. Marriage Halls, A.C. Function Hall, A.C Community Halls

d) Non-AC Marriage Halls, Function Halls, Community Halls

vii. Any other usage not covered

6-3. In respect of nature of Usage of Buildings, the Deputy Commissioner may add any other usage of Buildings not specified in Rule 6 of Assessment of Property Tax Rules depending on the local circumstances and situation as found necessary and incorporate the same in Form ‘A’ suitably.

7. Survey of Data relating to prevailing Rental values of 20% of rented buildings of all categories:

7-1. After finalization of the division of GHMC into Taxation zones and Sub-zones, a survey has to be conducted to gather information relating to the prevailing rental values of 20% of rented buildings of various categories as per nature of construction-wise and nature of usage-wise in each zone in a format prescribed in Form – D (Copy enclosed in Annexure - II)

7-2 As already stated that All buildings will be classified into 6 categories based on the nature of construction. Further, buildings will be classified into 22 categories based on nature of usage. Thus, there is a possibility of having 132 categories of buildings in each zone / sub-zone. Further, there is a possibility of more categories of buildings if new usages of buildings are added by the Deputy Commissioners. Hence, information has to be gathered for 132 categories of Buildings (more of less) in each zone to a tune of 20% of rented Buildings to the extent of their availability or situation in a zone. This information is vital for fixation of MRV per sq. ft of plinth area


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in each zone. Hence information has to be gathered in a true and deligent manner by contacting the tenants of 20% of rented Buildings.

8. Method of conducting survey:

Bill Collectors and Revenue Inspectors shall be entrusted with the task of conducting a survey of gathering prevailing rental values of 20% of rented buildings of all categories .

As a first step, the Bill Collectors / Revenue Inspectors shall introduce themselves to the Tenants of Buildings and explain the purpose of their visit as mentioned hereunder.

“GHMC has initiated the process of revising property tax to come into force from 01.10.2012. For this purpose a survey is conducted to gather information relating to prevailing rental values of 20% of rented buildings as per nature of construction-wise and Usage-wise. Your cooperation is solicited to furnish the required information for the survey”.

As a second step, a leaf let (in English / Telugu / Urdu) has to be handed over to the tenant of the building about the purpose of the survey. A leaf-let is prepared explaining the revision of property tax and the purpose of survey as shown in Annexure – III.

As a third step, the Bill Collectors / Revenue Inspectors shall take measurements of length and breadth of a building for arriving at plinth area. Further they shall gather the information relating to prevailing rental value of the building for which plinth area has been measured.

As a fourth step they shall gather information relating to plinth area and prevailing rental values of various categories of 20% of rented buildings in a zone as per nature of construction-wise and as per usage-wise to the extent of their availability in the zone/sub zone allotted to them.

9. Method of Filling up survey Format:

The method of filling up various columns in Form D is explained hereunder:

Col.No

Item Method of filling up the column

Property Tax Zone No:

As per information given in draft notification in Form - A

Sub-Zone No:1 Sl. No2 PTI. No Property Tax identification no or Assessment No has to be

filled up as per existing Municipal Records3 Door No This column will be filled up as per existing Municipal

Records4 Existing Property Tax

per annumThis column will be filled up as per existing Municipal Records

5 Existing Gross MRV This column will be filled up as per existing Municipal Records


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6 Name of the Tenant This column has to be filled up after conducting proper enquiry

7 Nature of Construction

This information will be filled up after inspection

8 Cellar/ Ground Floor/ 1st Floor/ Other Floors

After inspection of the building, this column has to be filled up

9 Nature of usage This information will be filled up after inspection10 Plinth Area (Sq.ft ) Plinth area means: “Area arrived at by multiplying the

length of the building with breadth as measured outside the basement level” as per Rule 2 of Assessment of Property Tax Rules, 1990

Plinth area of a building includes plinth area of cellars, ground floor and all other floors above the ground floor of the building. Open balconies, open staircase, open portico without support are not to be included in plinth area.

Plinth area has to be taken separately in the following cases:

1. if the construction is more than one category.2. if the building is put to different uses.3. the building is constructed in different years 4. In respect of multistoried buildings, plinth area has

to be taken floor wise.11 Prevailing MRV After inspection of the building, the column has to be filled

up after ascertaining information from the tenant12 Remarks Any other relevant information may be noted here.

10. Test Checking:

Assistant Commissioners / Valuation Officers / Deputy Commissioners shall take all steps to ensure that survey is conducted in a proper manner and information is gathered in a true and deligent manner as this information is vital for fixation of MRV per sq. ft of plinth area. In addition, they shall conduct a test check of 10% of the Buildings surveyed and record their findings thereon in the survey format.

11. Method of arriving at rental data :

After completion of survey, plinth area for buildings of same construction and same usage category-wise shall be totaled got each zone / sub-zone. Similarly, the prevailing monthly rent for these buildings also shall be totaled. Later on, the monthly rent per sq.ft. plinth area for buildings of same construction and same usage shall be arrived at by dividing total monthly rent by total plinth area. Thus monthly rent per sq. ft. of plinth area for all categories of buildings construction-wise and usage-wise shall be arrived at in each zone / sub-zone.


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12. Finalization of draft notification in Form – A

12-1. After completion of survey of prevailing rental values of 20 percent of rented buildings, the Deputy Commissioner shall provisionally propose the monthly rental value for all categories of buildings in all zones / sub-zones based on the nature of construction and nature of usage in Form-A The Deputy Commissioner shall prepare a draft notification in Form –‘A’ containing division of the Circle into taxation zones and sub-zones and localities / areas included in each zone with particulars of door nos. included in each zone and showing monthly rental value proposed for sq. ft. of plinth area for all categories of buildings based on type of construction & nature of usage in all zones.

12-2. The Deputy Commissioner shall submit the draft Form – A in complete shape to the Head office for scrutiny and finalization

12-3. Committee at Head Office to finalize the monthly rental value: A Committee is constituted at Head office with the following officers to scrutinize and finalize the monthly rental value per sq. ft. of plinth area proposal by Deputy Commissioners.

i. Special Commissioner -- Chairmanii. Addl. Commissioner(Finance) -- Convenoriii. All Zonal Commissioners -- Membersiv. Chief Valuation Officer -- Member v. Addl. Commissioner(Admn.) -- Membervi. Secretary -- Membervii. Dy. Commissioner, Cir-2 -- Memberviii. Dy. Commissioner, Cir-10 -- Memberix. Dy. Commissioner, Cir-14 - Member

12.4. The committee constituted at Head Office shall compare the rental values proposed per sq. ft. of plinth area by various Deputy Commissioners and ensure that rental value per sq. ft. of plinth area is fixed in a proper manner.

13. Issue of draft notification in Form A:

13-1. The committee constituted at Head Office after scrutiny of the draft notifications in Form A received from the Deputy Commissioners shall place the draft notification in Form A before the Commissioner for approval. After approval of the Commissioner a gist of draft notification shall be published in a Local Newspaper having circulation in the District and a complete draft notification shall be published in the District Gazette calling for objections or suggestions from the public if any, on the said notification, regarding division of Municipal Corporation into zones and the monthly rental value fixed per sq.ft for various categories of buildings so as to reach the commissioner within 15 days from the date of publication of the notification in the District Gazette.


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13-2. The Additional Commissioner (Finance) shall make available copies of the District gazette containing draft notification to the public at the main office of the Corporation, Circle offices, E-Seva centres on payment of reasonable cost from the date of publication of gist of the draft notification in the newspaper.

14. Issuance of Final Notification in Form – A :

14-1. After expiry of 15 days from the publication of the draft notification in the District Gazette, the Additional Commissioner (Finance) shall tabulate the objections and suggestions received from the public in this matter. Further, an informal meeting with the Mayor and Members of the Corporation including ex-officio Members and Co-option Members shall be conducted requesting their suggestions on the draft notification in Form - A duly furnishing the suggestions received from the public on the draft notification.

14-2. After completion of the above exercise, the objections and suggestions received in response to said notification both from the members of the public and the elected representatives shall be considered carefully and revise the zones and the monthly rental value provisionally fixed for various categories of buildings wherever necessary. There upon final notification in Form – ‘A’ shall be published in the District Gazette and a gist of the final notification shall be published in the local Newspaper having circulation in the District for information of the public.

14-3. The Additional Commissioner (Finance) shall make available copies of the District gazette containing final notification to the public at the main office of the Corporation, Circle offices, E-Seva centres on payment of reasonable cost from the date of publication of gist of the final notification in the newspaper.

15. Property Tax Assessment Return

As per section 213 of HMC Act, the Deputy Commissioners are competent to call for information relevant for assessment of property tax from the owner or occupier of buildings. All the Deputy Commissioners are instructed to call for a property tax return from owners of buildings as per the proforma prescribed in Citizen Charter guidelines to save time in preparation of assessment list of buildings in Form – ‘B’ for revision of property tax. A copy of property tax return is enclosed as Annexure IV .

16. Preparation of Property Tax Assessment List of Buildings in Form ‘B’

16-1. After completion of division of Municipal Corporation into zones and gathering information relating to prevailing rental values of 20% of rented buildings of various categories of buildings to the extent available, the Deputy Commissioners shall take action to prepare Property Tax Assessment list of Buildings in Form ‘B’ without any loss of time and without waiting for the issue of draft and final notification in Form ‘A’. Teams shall be constituted with the following officers to the extent necessary for


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preparation of Assessment List of Buildings in Form B. A copy of Form- B is enclosed as Annexure-VIII. The existing practice of maintaining the Assessment Books in Non-Statutory form in the core area circles of GHMC is dispensed with. Therefore, all the Dy. Commissioners shall henceforth mandatorily maintain the Assessment Books in Form-B only, as prescribed in the GHMC Act, 1955.

i. Tax Inspectors ii. Assistant Engineers iii. Town Planning Building Overseasiv. Senior Assistants / Jr. Assistants

The teams shall inspect the buildings with the assistance of the Bill Collector concerned and fill up the columns in property tax assessment list of buildings except columns 27 & 28 which shall be filled up by the Deputy Commissioner.

16-2. Property Tax Assessment list of Buildings (Form – B)

Property Tax Assessment list of Buildings in Form - B is the basis for assessment of Property Tax on Buildings. Hence proper filling up of various columns is of utmost importance in the assessment of property tax. The method of filling up various columns is explained here under.

Col. No.

Item Method of filling up the Column

1 Door No. This column will be filled up from the existing Property Tax Demand Register.

2 Name and address of the owner

-do-

3 No. in the Assessment Register

-do-

4 ARV of the Building -do-5 ARV of the site -do-6 Total property tax -do-7 Library Cess -do-8 Zone no. This item will be filled up from the notification

showing MRV fixed per sq.ft of plinth area.9 Name of the locality -do-10 Year of completion and age

of the building.Information shall be ascertained orally from the owner of the building. In case of doubt, owner may be asked to produce evidence.

Description of each storey of the building.

11 Nature and type of roofing. After inspection of the building, this column has to be filled up. If there are different roofings, they have to be recorded separately.

12 Nature and type of flooring. -do-13 Nature and type of wood. -do-14 Nature and type of walls. -do-

Amenities provided in the building


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Col. No.


15 Electricity -do-16 Water tap/well -do-17 Whether connected with

Municipal Drainage-do-

18 Attached bathroom -do-19 Total adjacent premises in

sq.mts.First, total area of the site including building shall be measured. Plinth area of ground floor shall be deducted from the total area of the site to get extent of adjacent premises.

20 Area of appurtenant land allowed section 212 of HMC Act

Three times plinth area of the building including built up area shall be allowed as area of appurtenant land. If plinth area of G. floor is 100 sq.m adjacent premises area would be 300 sq.m.

21 Area to be taxed under VLT with assessment no.

As per section 212 (2) of GHMC Act, 1955 vacant land not exceeding three times plinth area of building including its site or vacant land to the extent of 1,000 sq. mts. whichever is less shall be deemed to be adjacent premises occupied as an appurtenant to the building and assessed to tax as per section 212 (1) of GHMC Act, 1955.

If appurtenant land is more than three times of the plinth area of the building including its built up site, then the excess land will be treated as vacant land and taxed separately. For example if the total area of the site is 500 sq.m. and plinth area of G. floor is 100 sq.m permissible appurtenant land is 300 sq.mts. Balance 200 sq.m. shall be taxed separately as if it is vacant land.

22 Name and occupation of the occupant (owner or tenant)

This column has to be filled up after conducting proper enquiry. In case of doubt, the occupant may be asked to produce evidence like Ration Card, Bank Pass Book, Pass Port, Voter Photo Identity Card etc.

23 Type of construction After inspection of the building this column has to be filled up.

24 Plinth area of building per each type of construction in sq.m.

Plinth area has to be taken separately in the following cases.

1) if the construction is more than one type2) if the building is constructed in different

years.3) if the building is partly owner occupied

and partly let out.4) if the building is put to different uses i.e.

Residential, Office, Shop etc.


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Col. No.


25 Nature of use of the building

After inspection of the building this column has to be filled up. If the building is put to more than one use, plinth area has to be taken separately for each use.

26 MRV notified per sq. m. plinth area.

This column has to be filled up as seen from the notification in Form ‘A’.

27 Monthly Rental Value fixed Plinth area has to be multiplied with MRV notified per sq.ft. of plinth area.

28 Reasons for increase / decrease

Self contained reasons shall be recorded for increase/decrease of property tax.

29 Assessment no. allotted in the new register.

Assessment nos. will be allotted ward-wise. For example if there are 2600 buildings in ward no.1, assessment nos. will be allotted upto 2600 and 400 assessment nos. will be reserved for new assessments. Assessment no. of ward no. 2 starts from 3001.

30 Gross ARV of the building Monthly Rental Value between building and land will be apportioned in the ratio of 1:1. For example if the MRV of the property is Rs.3000/- MRV of Building would be Rs.1,500/- and that of land Rs.1,500/-

31 Age of the building This will be filled up from column (10)32 Allowances for repairs /

depreciationAllowances have to be given based on age of the building and nature of occupation i.e. owner occupied or rented.

33 Annual Rental Value of the building (ARV)

Column 30 minus column 32.

34 Annual Rental Value of the premises

50% of the total Annual Rental Value of the property.

35 Total Annual Rental Value Col. 33 plus col. 34Revised assessment as fixed by the Commissioner

36 General Tax GHMC has notified rate of property tax separately for residential buildings and Non-residential buildings.

37 Conservancy Tax 38 Lighting Tax39 Drainage Tax40 Total Property Tax41 Library Cess Library Cess is levied at 8% of property tax. 42 Total property tax and

library cessCol. 40 plus col. 41

43 Initials of Commissioner This has to be filled up the Deputy Commissioner.

44 No. of special notice Every special notice is given a no. This no. has to be noted.

45 Date of service of special notice

This important. Date of service of special notice has to be noted. This date is required to determine whether compliant petition is received within the time.


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Col. No.


46 Date of receipt of complaint petition.

Complaint petitions will be considered if they reach Municipal Office within 15 days from the date of service of special notice.

47 No. of complaint petition All C.P.s shall be numbered consecutively.48 Orders of the

CommissionerSelf-contained orders have to be passed by the Deputy Commissioner after disposal of C.P. Orders in brief have to be recorded in this column.

Assessment fixed on Complaint Petition

49 General Tax These columns have to be filled up as in the case of cols. 36 to 40.50 Conservancy tax

51 Lighting Tax52 Drainage Tax53 Total property tax54 Library Cess These col. have to be filled just like cols. 41 and

4255 Total property tax and library cess

16-3. Apportionment of Annual Rental Value (ARV)

The ARV is apportioned among the building and site in the following proportion.

i) Building - 50% of ARVii) Site - 50% of ARV

16-4. Allowances for repairs or on any other account

The following deductions are allowed from the ARV attributable to the building in lieu of all allowances for repairs or on any other account:

Age of the building Deduction allowed25 years and below 10% of ARVAbove 25 years and upto 40 years 20% of ARV

Above 40 years 30% of ARV

16-5. Rebate to owner occupied residential buildings

A rebate of 40% of the ARV attributable to the building is allowed in respect of the residential buildings occupied by the owner inclusive of the deduction permissible towards the age of the building.

17. Vacant Land Tax

In respect of vacant lands, the capital value of the land will be the basis for taxation. The capital value means the market value fixed by the Registration department for the purpose of registration. In case the land is purchased at a higher price than the market value, the consideration mentioned in the registered document will be adopted. The property tax on vacant lands shall be levied at 0.50% of the


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capital value of the land. Vacant land in excess of the permissible limit as appurtenant or adjacent to a building is not taxed, if it is used for development of trees or gardens. Property Tax in respect of vacant lands shall be revised in Form ‘C’ enclosed as Annexure - V

18. Exemption from payment of General tax component of property tax

As per section 202 (1) of GHMC Act, 1955 the following buildings and lands are exempted from payment of general tax component of property tax:

i. Burial grounds

ii. Buildings and lands solely used for public worship or for a charitable purpose

iii. Educational institutions upto 10th class, the buildings of which are donated by charitable institutions or philanthropists or which are depending on grant-in-aid by the government for maintenance

19. Exemption of Owner Occupied Residential Buildings

The owner occupied residential buildings are exempted from property tax by a resolution of the Corporation, if the annual rental value does not exceed Rs. 900/-:20. Houses constructed for the urban poor

In respect of houses constructed through the agencies of State Government under Weaker Section Housing Programmes for the urban poor, the municipal corporation shall collect an amount of two rupees per every half-year towards property tax.

21. Multistoried buildings

As per Rule 7 (2) of Hyderabad Municipal Corporations (Assessment of Property Tax) Rules, 1990 in respect of all multistoried buildings monthly rent shall be fixed separately for the following categories:

i. Cellar ii. Ground and First Floor iii. Other floors

22. Non-multistoried buildings

As per the orders issued in G.O.Ms.No.468, M.A, dt.31.7.1993 in respect of non-multistoried buildings without lift facility, MRV per sq. ft. of plinth area to be fixed separately for the following categories.

i. Cellar ii. Ground and First Floor iii. Second and Third Floor

23. RCC Posh Buildings

As per the amendments issued to Assessment of Property Tax Rules in G.O.Ms.No.596, M.A, dt.20.11.2006 a building which satisfies the following criteria shall be classified as RCC posh building.


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a) A building which is having superior sanitary and electrical fittings which lead to higher cost of construction.

b) A building which is having pre-ponderance of marble flooring, teak wood for doors, windows and cup-boards.

Note: the difference in MRV per sq. ft. of plinth area between RCC posh building and RCC ordinary building shall be limited to 20% of the MRV per sq.ft of plinth area.

24. Test Check of Property Taxes Assessment List of Buildings in Form-B

The following officers shall test check the preparation of Assessment List of Buildings to a tune of 10% of the assessments allotted to them.

i. Deputy Commissioner ii. Assistant Commissioner / Valuation Officeriii. Assistant City planneriv. Executive Engineer

25. Calculation of Property Tax and Preparation of Special Notice

As soon as information is gathered in Property tax Assessment List of Buildings in one book, the Deputy Commissioner shall fill up the columns 27 & 28 in the said list duly fixing monthly rental value and record reasons for increase of Property Tax for each assessment. Self contained reasons shall be recorded for increase of property tax. As soon as columns 27 & 28 are filled up in one book, the concerned assistants in revenue section shall calculate the property tax. This work relating to fixation of MRV and recording reasons and calculation of property tax shall be taken up as soon as information is gathered in one assessment book without waiting for completion of the entire work in all assessment books.

26. Preparation of Special Notice

As soon as assessment is fixed by the Deputy Commissioner in the assessment list, a special notice of property tax for revision of property tax shall be prepared in the format prescribed duly filling all columns in the special notice.

27. Approved Assessment List

The Deputy Commissioner shall sign the assessment list for each ward as soon as it is completed and shall then certify the correctness of the total amount of the revised assessment for such ward. 28. Service of Special Notices

28-1. The special notice shall provide complete information to the owner of the building to enable him to understand how the MRV is fixed. Further it enables the owner to file a complaint petition if he notices any discrepancy in the information


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furnished in col.no. 8 i.e. (a) Nature of construction, (b) Plinth area (c) Nature of usage. Service of special notices shall be completed before 15-01-2013.

28-2. As per Section 630 of HMC Act service of the notice may be effected.—

i. By giving to the owner of the building duly obtaining acknowledgement on the office copy of the special notice with the date.

ii. Whenever the owner is not found in the building by giving the notice to some adult member or servant of his family. In these cases, the name of the person on whom notice is served shall be got written in capital letters underneath the signature duly noting down the relationship of the recipient to the owner of the building. Date of service always shall be noted in the office copy of the special notice.

iii. If the owner does not reside in GHMC and his address elsewhere is known to the Deputy Commissioner by sending the same to him by registered post.

iv. If none of the means aforesaid be available, by fixing the same in some conspicuous part of such place of abode or business.

29. Time Line for completion of General Revision of Property Tax

A detailed time line for completion of general revision of property tax in all

respects is provided in Annexure –VI. All Deputy Commissioners are instructed to

ensure that the general revision of property tax is completed in a proper manner as

per schedule.

30. Progress Report

A weekly progress report is prescribed on general revision of property tax as

shown in Annexure –VII. The Deputy Commissioners are instructed to submit the

weekly progress report by e-mail on every Wednesday for the preceding week.

31. Training

The Dy. Commissioners are instructed to conduct Training programme to the

Executive Engineers, Asst. City Planners, Valuation Officers, Tax Inspectors, Bill


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Collectors and other Officials involved in this process and Training should be

imparted to these officials before commencement of 20% survey.

All Officers are further instructed to study the provisions of GHMC Act, 1955

relating to Assessment of Property Tax, Hyderabad Municipal Corporations

(Assessment of Property Tax) Rules, 1990 as amended from time to time, circular

instructions on the subject and ensure that the General Revision of Property Tax is

undertaken in a proper manner.

The time frame for the completion of various activities for

rationalization of property tax is as under:

Sl. No.

Item Days Period

1. Division of circles into taxation zones 15 days

21-07-2012 to 03-08-20122. Finalization of the division of GHMC into

taxation zones and sub-zones by the Head Office

3 Survey of prevailing rental values of 20% of

rented buildings of all categories

45 days

04-08-2012 to 17-09-2012

4 Publication of the Draft notification in Form ‘A’ showing the monthly rent fixed for Sq.ft of plinth area

24-09-2012

5 Tabulation of objections / suggestions received from the public along with remarks of the Commissioner thereon and convene informal meeting with the Mayor and all members of corporation for receiving their suggestions

15 days

25-09-2012 to 09-10-2012

6 Publication of Final Notification in Form- A 10-10-2012 to

7 Preparation of Property Tax Assessment List of Buildings in Form – B

(Note:- The work relating to preparation of assessment list of buildings shall be started parallely as soon as division of Corporations into zones is completed by constituting required number of teams)

60 days

25-09-2012 to 25-11-2012

8. Preparation of special notices

(Note: Preparation of special notices shall be started simultaneously as soon as one assessment book is completed without waiting for completion all assessments books)

30 days

26-11-2012 to 26-12-2012

9. Service of special notices 15 days

27-12-2012 to 11-01-2013


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The entire work shall be completed with in prescribed time frame for

which all Deputy Commissioners are instructed to submit fortnightly

progress reports in the format prescribed in Annexure-IV on every

Wednesday review meetings. All the Zonal Commissioners are directed to

concentrate on this item of work and monitor that the entire work shall be

completed with in the time frame. Any slackness to the above

instructions will be viewed seriously

Encl. :

1) Annexure-I - Form A - Notification showing monthly rent fixed per sq. ft. of plinth area

2) Annexure-II - Form D – Survey of data relating to prevailing rental value of all

categories of buildings in GHMC

3) Annexure-III - Appeal to the tenants of rented buildings

4) Annexure – IV – Property tax return

5) Annexure – V - Form C – Register showing Vacant land tax assessment in GHMC

6) Annexure – VI - Time line for completion of general revision of property tax

7) Annexure – VII - Format of progress report on general revision of property tax.

8) Annexure – VIII – Form- B


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circular(revision of property tax in ghmc_final)

Documents