Properties under construction taxed by GHMC

PTINs are generated at the time of registration resulting in their assessment for payment of property tax

December 08, 2021 12:23 am | Updated 12:02 pm IST - Hyderabad

Several owners go for registration of property even before construction is completed in all respects.

Several owners go for registration of property even before construction is completed in all respects.

Online mutation of property at the time of registration for the purpose of property tax assessment may have resulted in unfair taxation for several citizens in the city, sometimes even without their knowledge.

A number of properties which have been brought under tax assessment in the current year are still under construction, and hence unoccupied.

GHMC officials on the condition of anonymity share that instructions have been issued for assessment of even properties for which Occupancy Certificates have not been issued. “According to the changed system, PTIN (Property Tax Identification Number) is generated at the time of registration, which is forwarded to us. As soon as we get the number, we bring the property under the assessment,” an official informed.

Though the bill collectors are to do the ground verification before assessment, in case of apartments, the tax is calculated based on the square footage mentioned in the sale deed, he said.

Several property owners go for registration of the property even before construction is completed in all respects and occupancy certificate is issued.

PTINs are being generated even for such properties resulting in their assessment for payment of property tax, the official shared.

In the earlier system, it was the job of the bill collectors and tax inspectors to bring in the new assessments in their respective purviews. Assessment would be done only for properties which were complete in all respects, and for which occupancy certificates had been issued. However, the system gave scope for corruption in unimaginable proportions, with bill collectors harassing the property owners, and condoning a large number of illegal constructions in return for bribe. The newly introduced system, while not removing the bill collectors’ role altogether, has created a new set of problems for the owners, by taxing them ahead of completion of construction.

This year, up to now, a total of 47,559 properties have been brought under assessment, garnering more than ₹77 crore for the civic body by way of property tax and penalties.

Serilingampally circle has the highest number of assessments at 7,943, followed by Chandanagar at 4,111.

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