Telangana grants partial tax relief to SVK Gachibowli

Hyderabad: The Telangana government has approved a partial property tax exemption for Sarvodaya Vidyalaya Kendra (SVK) in Gachibowli, directing the Greater Hyderabad Municipal Corporation (GHMC) to extend the benefit only to the portions of the premises used for non-commercial purposes.

In an order issued by Special Chief Secretary Jayesh Ranjan, the government instructed GHMC Commissioner RV Karnan to grant the exemption under Section 202 of the GHMC Act, 1955, strictly for areas utilised for non-commercial activities.

A report by DC stated that the government clarified that any portion of the premises being used for commercial purposes would continue to attract property tax in accordance with the provisions of the GHMC Act and the rules in force. The GHMC Commissioner has also been directed to submit a compliance report after implementing the order.

Inspection found commercial use

The decision follows a report submitted by the Zonal Commissioner of the Serilingampally Zone after the managing trustee of SVK sought exemption from property tax.

According to the report, GHMC officials, along with the bill collector and tax inspector, conducted a preliminary inspection of the premises and found that a substantial portion of the property was being commercially utilised through lease agreements with private IT companies, fitness centres and sports-related firms.

The inspection, however, noted that a section of the premises continued to be used for non-commercial activities such as a library and meeting halls.

Govt limits exemption

Based on the inspection findings, the GHMC sought the government’s guidance on whether the institution was eligible for property tax exemption despite the reported commercial use of the premises.

After examining the matter, the government decided that the exemption would apply only to the areas used exclusively for non-commercial purposes, while directing GHMC to levy property tax on all portions being used for commercial activities, the report added.