Are you wondering how is real estate in Bangalore and Hyderabad?
In the dynamic landscape of real estate, both Hyderabad and Bangalore stand out as vibrant hubs, witnessing unprecedented growth and presenting a golden opportunity for prospective investors.
Hyderabad, being India’s largest property market, recently experienced a remarkable surge in stamp duty revenue collection in November 2023. Property registrations soared by an impressive 25% year-on-year, totaling over 6,268 deals, with the cumulative value reaching Rs 3,741 crore—an exceptional 29% increase from the previous year. (Source: The Economic Times)
Meanwhile, the real estate scene in Bangalore paints a similarly promising picture. The third quarter of 2023 saw an 18% year-on-year surge in housing prices. Notably, the launch of high-end luxury projects and the completion of metro lines in KR Puram and Whitefield played a crucial role in this upward trajectory. According to a report from CREDAI and Colliers and Liases Foras, the housing prices in these specific areas witnessed an impressive 39% year-on-year growth. (Source: The Economic Times)
As both cities continue to showcase resilience and growth in their real estate markets, now emerges as an opportune moment for investors to delve into the exciting prospects that Hyderabad and Bangalore offer.
All things considered, owning property comes with the responsibility of paying property tax. This annual expense contributes to the enhancement of local amenities and infrastructure.
If you are thinking, how to invest in real estate in Bangalore & Hyderabad; and how to navigate your way through all the property tax procedures? Here’s a simplified guide to help you understand the GHMC (Hyderabad) & BMPP (Bangalore) property tax process.
Your Quick Guide to ‘Greater Hyderabad Municipal Corporation’ Property Tax:
Calculation Method:
GHMC calculates property tax using the annual rental system. For residential and commercial properties, a specific tax rate is applied based on the potential rental value. You can use the GHMC property tax calculator online to find your property’s annual rental value.
Example Calculation:
For a 500 sq.ft. home, if the monthly value exceeds Rs.300, a 30% tax slab applies, with an 8% library cess. As an example, the total property tax for the year could be Rs. 9,072.
PTIN Generation:
To pay GHMC property tax, you need a Property Tax Identification Number (PTIN). New property owners can generate PTIN online through the GHMC website or offline through the city deputy commissioner.
Payment Steps:
Log on to the GHMC website, enter your PTIN, verify details, choose your payment mode, and receive a payment receipt.
Offline Payment:
Visit MeeSeva counter, Citizen Service Centre, bill collectors, or State Bank of Hyderabad branches with required documents for offline payment.
Due Dates and Penalty:
Half-yearly GHMC property tax is due by July 31 and October 15. Late payments incur a 2% monthly penalty.
Exemptions:
Some properties enjoy concessions or exemptions, such as those with a monthly rental value below Rs. 50, properties owned by charitable organizations, and owners with an annual income below Rs. 5 lakhs.
Your Quick Guide to ‘Bruhat Bengaluru Mahanagara Palike’ Property Tax:
To answer the question -Is real estate a good investment in Bangalore, one must also be fully informed about BBMP’s Property Tax.
Calculation Method:
BBMP uses the Unit Area Value (UAV) mechanism to calculate property tax based on the expected returns from a property. The formula involves factors like rented and self-occupied areas, parking space, and depreciation rate. The property tax rate varies across different zones in Bengaluru.
Property Tax Rate in Bengaluru:
The tax rates for rented and self-occupied properties in different zones are specified by the BBMP. Rates range from Rs. 5 per sq.ft. for rented properties in Zone A to Rs. 1 per sq.ft. for self-occupied properties in Zone F.
Tax Calculation Methods:
BBMP employs three methods for property tax calculation – Annual Rental Value, Capital Value, and Unit Area System. The Unit Area System is commonly used in Bengaluru, involving the cost of carpet area per unit.
Paying Property Tax:
The most convenient way to pay BBMP property tax is online through the BBMP website. Visit bbmptax.karnataka.gov.in, enter your Property Identification Number (PID), choose a payment option, and complete the transaction. Make sure to download the receipt for your records.
Getting PID Online:
Retrieve your PID by selecting “Citizen Services” on the BBMP website and navigating to “GIS Enabled Property Tax Information System.” Register with your primary and mobile numbers to access your PID.
Forms for Property Tax Payment:
Depending on the property type and changes, choose the appropriate form (Form 1 to Form 6) to complete the payment process.
Tax Rebate and Penalty:
Paying the BBMP property tax in full before the due date qualifies you for a 5% rebate. However, a 2% monthly interest charge applies if the payment is delayed. Property owners can avoid interest by paying in two installments.
Downloading Tax Receipt:
Access your property tax receipt online by clicking “Downloads” on the BBMP Property Tax portal. Enter the assessment year and application ID to print or save the receipt.
Offline Payment Option:
For those preferring offline payment, submit the required form at Bangalore One Center or the Assistant Revenue Officer’s office. Various institutions are also authorized to collect BBMP property tax.
Stay informed and compliant to ensure a hassle-free property tax experience!
