In a significant move aimed at providing relief to property owners within the Greater Hyderabad Municipal Corporation (GHMC) limits and other Urban Local Bodies (ULBs), the Government of Telangana has issued orders for a substantial waiver on accumulated arrear interest on property tax.
In a bid to alleviate the burden of property tax arrears on taxpayers, the Telangana state government has introduced a progressive initiative known as the ‘One Time Scheme’ (OTS). This scheme, applicable across all urban local bodies (ULBs) in the state, including the Greater Hyderabad Municipal Corporation (GHMC), aims to provide relief to both private and government property owners.
Understanding the OTS
Under the One Time Scheme, taxpayers are eligible for a significant waiver of 90% on accumulated arrears interest on property tax, provided they clear the principal amount of dues until the financial year 2022-2023 together with 10% of interest at one go. This initiative comes as a welcome respite for property owners grappling with financial constraints amid economic uncertainties.
Key Highlights of the Scheme
The following points elucidate the significant aspects of the One Time Scheme:
Waiver of Accumulated Arrears Interest
Taxpayers stand to benefit from a substantial waiver of 90% on accumulated arrears interest on property tax, thereby easing the financial burden associated with overdue payments.
Clearing Principal Dues
To avail of the benefits under the OTS, taxpayers are required to clear the principal amount of dues until the financial year 2022-2023 along with 10% of interest in one consolidated payment.
Applicability to Private and Government Properties
The One Time Scheme extends its benefits to both private and government properties, ensuring equitable relief across all sectors.
Eligibility Criteria
To qualify for the One Time Scheme, taxpayers must adhere to the following eligibility criteria:
Settlement of Dues by March 2023
Taxpayers who have settled their dues, including interest and penalties, up to March 2023 during the current financial year preceding the implementation of the scheme are eligible to avail of its benefits.
Adjustment of Interest Against Future Payments
According to the Municipal Administration and Urban Development (MA&UD) order, 90% of the interest waived under the scheme will be adjusted against future payments, further incentivizing compliance among taxpayers.
Frequently Asked Questions (FAQs)
1. Who is eligible to benefit from the One Time Scheme?
- All property owners within the urban local bodies (ULBs) of Telangana, including private and government properties, are eligible to benefit from the OTS.
2. What are the key requirements for availing of the scheme’s benefits?
- To avail of the benefits under the One Time Scheme, taxpayers must clear the principal amount of dues until the financial year 2022-2023 along with 10% of interest in one consolidated payment.
3. How does the scheme impact future payments?
- 90% of the interest waived under the scheme will be adjusted against future payments, providing long-term relief to taxpayers.
The introduction of the One Time Scheme by the Telangana government underscores its commitment to alleviating the financial burdens faced by property owners. By offering a substantial waiver on accumulated arrears interest and providing a clear pathway for debt settlement, this initiative heralds a positive step towards fostering financial inclusivity and promoting compliance among taxpayers.
Background and Legal Framework
The decision, outlined in G.O.12t.No.101 dated 27.02.2024, is grounded in the provisions of Section 679-E of the GHMC Act, 1955, and is supported by several governmental directives, including G.O.Rt.No.306, G.O.Rt.No.375, G.O.Rt.No.566, and others issued by the Municipal Administration & Urban Development (GHMC.II) Department.
Key Provisions of the Waiver Order
Under the newly announced scheme, property owners stand to benefit from a significant reduction in arrear interest on property tax. The waiver entails a 90% relief on accumulated arrears, provided that the taxpayer settles the principal amount of property tax dues up to the Financial Year 2022-2023. Additionally, a one-time payment of 10% interest on the accumulated arrears is required to avail of this scheme.
Scope of the Scheme
This scheme extends its benefits to all properties, whether private or government-owned, within the GHMC limits and other ULBs. Notably, the waiver is applicable under the “One Time Scheme” (OTS), ensuring a streamlined process for taxpayers to benefit from the relief measures.
Furthermore, property owners who have already cleared their entire property tax dues, including interest and penalties, up to March 2023, are also eligible for this scheme. For such taxpayers, 90% of the interest paid previously will be adjusted against future payments, providing them with additional financial respite.
Implementation and Next Steps
The responsibility for implementing this scheme falls upon the Commissioner of the Greater Hyderabad Municipal Corporation, Hyderabad, and the Director of Municipal Administration, T.S. Hyderabad. These authorities are tasked with taking appropriate actions to ensure the effective execution of the waiver order.
