Diwali Gift: Telangana Govt Waives 50% Property Tax

Sprouting hope among the populace amid the adversities due to the pandemic, the Telangana govt has waived 50% property tax for this very financial year, i.e., 2020-2021. Municipal Administration Minister KT Rama Rao announced the one-time relief as a Diwali gift to its homeowners. Homeowners within the Greater Hyderabad Municipal Corporation (GHMC) jurisdiction who pay property tax up to Rs.15,000 can avail of the tax rebate. The homeowners in 141 other municipalities would get a subsidy up to Rs.10,000 on the property tax. 

This government’s move would benefit 13.72 lakh families across the GHMC zone costing the government Rs.196.48. The Telangana government is a benefactor for 17.68 lakh families in 141 other municipalities across the state, costing the state’s exchequer Rs.130 crores. 

The Government Order, GO No.611, also stated that the residential property owners who have paid the property tax already can still avail of the waiver as it would be adjusted in the next financial year.

The government’s move comes in the wake of the economic slowdown caused by the nationwide lockdown that profoundly impacted the financial aspects of the middle and lower-middle classes at large. The floods in the recent past across different parts of the city and Hyderabad’s surrounding municipalities have added fuel to the raging fire. In this scenario, though perceived as a political move for the soon approaching civic polls, it seems to be the savior of 31.40 lakhs families, with a budget of Rs.326.48 crores.

The state government is lending its hand to go further in the real estate sector by devising policies and schemes like Look East and North policy, Integrated Townships, and enforcing New Revenue Act. 

The New Revenue Act was recently brought into force by the state government, which amended the earlier Act, removing previous redundant laws. It introduced reforms in land revenue administration like digitization of land maps and launching the Dharani portal that contains the details of the land ownerships. Anyone from anywhere can access the portal. The online portal is a one-stop solution for all matters related to agricultural and non-agricultural lands throughout the state. The government is trying to reduce the corruption among the officials in the registration and mutation of properties that can be carried out through the Dharani portal.  

If Pattadar Pass Book-cum-Title Deed for agricultural land is not issued earlier due to any reasons, it would be issued by the registrar. The state’s chief minister announced that non-agricultural landowners would be given Maroon colored passbooks, which provide permanent rights on their property and avoid disputes related to ownership in the future. As the lands are digitized, it puts a period to counterfeiting the land registration documents, making real estate a credible investment with foolproof procedures. 

Hyderabad is developing self-reliant models to strengthen the real estate sector’s fundamentals through various policies and schemes. It is reflected in the Knight Frank India Report 2020 that states an increase in 3-4% of housing prices in Hyderabad, in contrast to the declining prices across the major cities like Delhi, Chennai. Also, the unsold inventory of Hyderabad indicates a delicate balance between demand and supply. 

Owning a property fetches security benefits during tough times like pandemics and rebates during celebrating times like these. The changing economic escapes call for schemes that benefit the property owners now and then. Hence, Real estate seems to be a prudent investment.

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