Municipal Tax. Claiming exemption for unused portion of the building

Greetings to the forum.
I have a personal property registered in my fathers name and i am the legal heir.

We let out the premises G+3 on basis of nominal rent(mandatory for obtaining
permissions frm govt)for running a small school.Only G+1 floors are used for that purpose and the 2,3 floors are dumped with unused furniture and other building garbage.The municipality (GHMC ACT)charged exorbitant charges (1.6L pa)stating it as commercial property though used for non profitable purpose.
further i am incurring loss upto a tune of 1L per month as we are bound by moral responsibility to run the school on one of our deceased family member.

Need advice on the following issues:
1. is there any recourse for claiming paid taxes for past 6 years.
2. though application was made for revision of tax and it was not honoured.
3. GHMC ACT clearly exempts properties used for charitable and no- profits be given 100% exemption.
4. What are the legal docyuments necessary to claim exemption.
What are the relaxations i can claim from the AP GOVERNMENT.

Hi! Thanks for the question! 

To get the taxes paid in the last 6 years would not be an option as you should have objected before the taxes' cheques were issued.

If your school is duly registered with the concerned authorities as a charitable issue, you may move an application duly supported with the Registration certificate, PAN Card, ITR and whatever is demanded from the office, before the tax collecting authority. You have to establish that your Sanstha is a non-profit organization.

If you get entangled for the nominal rent that you are talking about, the returns would be difficult.



Thank you for kind reply Mr. Ragav Arora. Leaving the past years what needs to be done in the future to minimize the payments. We here are unable to make the both ends meet In you last stament you stated that it is difficult but not impossible. I would be grateful if you give me leads on how to proceed under these circumstaces or should i abandon the whole issue clise the school and lease out the premises to some X.

Get yourself properly registered as a charitable trust and then you shall be exempted under the provisions.

Total likes : 1 times


Thank you for your guidance

Please guide on how to get a personal property registered in the name of the trust with lesser complications when intended to dispose.

Till the time property is registered/occupied/used as "leased" it is liable to be charged with commercial rate of tax by the municipality irrespective of the fact that two of three floors are being used to dump your garbage and the only floor is used for running school whether the same is for charitable or non-charitable.


Consult a local lawyer for guidance on the provisions of GHMC Act.  

Total likes : 2 times


Yes, consulting a local lawyer to wind things up and also the registration withing the four walls of GHMC Act would be your way. 


Than you for your valuable suggestion. Ill go ahead with this one.



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