The scheme of self-assessment of property tax has been in practice in Hyderabad since 1999.This self-assessment scheme is now creating revenue losses for the civic body, with the increased number of house owners hiding information pertaining to their properties to avoid property tax.
In order to curb this situation the Greater Hyderabad Municipal Corporation (GHMC) has decided to implement Geographic Information System (GIS) to trap all the unassessed properties in the city under tax net. This measure is being taken as the civic body has confusion over the number of households present in the city. As per the census data, there are 20 lakh properties in the city, but as per the data available with GHMC it is only 12.5 lakh (10.5 lakh residential properties and 2 lakh commercial properties).
The GIS will be implemented on a pilot basis in one block and then will be regularized to the entire city. Just with a single click GIS gives information about number of floors, type of construction, usage and under assessment of the properties. With the help of GIS mapping, the GHMC will assign a code with property tax identification number (PTIN) to every building.
In addition to GIS, it has also proposed door to door verification of various households in the city, with the data available from census and the civic body. To correlate the physical verification of the property with the data available, GHMC is planning to take the help of about 300 bill collectors. They have to conduct these verifications in their respective households.
The data available with the corporation regarding the assessed properties did not match with the data of census in about 6 circles (4, 5, 6, 7, 10 & 11). It is found that information regarding the 52,000 properties has not matched with the census data and in the 21,000 properties whose data has matched, 15,200 commercial properties were being taxed as residential properties. Serlingampally is the only circle in which data from both the bodies has matched.
By bringing all the current unassessed and under assessed properties in to the tax net, GHMC is expecting the property tax revenue for the fiscal year 2012-13 to reach a target of Rs.1,000 crore, which was Rs.634 crore last year.
For the latest update on this topic, please click GHMC All Set to Dig Out Unassessed Properties Using GIS.