Five lakh home owners to benefit for property tax sops in Hyderabad

Article from ET Realty

HYDERABAD: Just days before releasing the notification for elections to the GHMC, the state government issued orders reducing property tax to a nominal Rs 101 per year from house owners who have been paying tax up to Rs 1,200 per annum till now. The latest sop by the state government is likely to benefit about five lakh house owners in Greater Hyderabad.

The Municipal Administration and Urban Development department issued the GO on Thursday amending Section 202 A (1) of the GHMC Act. According to the amendment, “The government may exempt any residential building occupied by the owner from property tax where the Annual Rental Value does not exceed Rs 4,100 (i.e. Rs 1,200 property tax per annum) subject to the condition that the beneficiaries of exemption shall pay a nominal amount of Rs 101 per annum towards property tax.”

KCR, a couple of months ago, announced the decision to reduce the property tax mainly to woo voters. Whether the government would adjust the amount in future for those who have already paid the amount for the current financial year is not known.

The department also made amendments raising the cost limit of works being taken up by the GHMC. Until now, the standing committee has powers to sanction works up to Rs 50 lakh and works costing above Rs 50 lakh require administrative sanction from the government.

As several projects are piling up for clearances, the powers of the standing committee have been raised up to Rs 3 crore. Similarly, works up to Rs 6 crore can be taken up with the approval of the standing council. Any developmental works costing more than Rs 6 crore need to be sent to the state government for clearance.

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