Hyderabad: Tax evaders beware. The Greater Hyderabad Municipal Corporation will charge two-and-a-half years’ property tax with retrospective effect along with 2 per cent extra monthly interest from those who have not paid their taxes.

If a building is found un-assessed, that is tax is not being paid on it, then the GHMC’s tax officials will charge extra property tax. For example, if the tax assessment for a year comes to Rs 1 lakh, the citizens will have to pay an additional property tax of Rs 2.50 lakh for two-and-a-half-years with retrospective effect.

Besides, 2 per cent monthly interest will also be charged on the Rs 3.50 lakh. A similar punishment would be imposed on those who are found guilty of paying less property tax.  There are thousands of buildings in the city, which are under-assessed.  Similarly, there are hundreds of buildings whose owners haven’t paid property taxes, as per a rough assessment.

A large number of additional floors, flats and portions of buildings that were regularised under the building penalisation scheme are yet to be brought under the tax net. There are also a large number of buildings to which two or three extra floors were added without paying enhanced taxes. Besides, there are residential buildings that are being used for commercial purposes but their owners continue to pay residential property tax.

However, the GHMC would reward citizens with a five per cent rebate if they pay their property tax each year before the due date of April 30.

The government has also permitted the owners of buildings that have been levied extra taxes with retrospective effect to present their case against such assessment.

GHMC additional commissioner (Finance) Ashok Reddy said that as per the amended GHMC Act it hadn’t been made mandatory for the municipal body to serve tax bill to citizens. Building owners have to pay property taxes annually on their own whether bills are served on them or not.

Deputy municipal commissioner M.S.S. Soma Raju said the government had also imposed a restriction on leasing out of municipal owned properties. Earlier, GHMC didn’t have powers to lease out properties for 99 years or for even 33 years. The occupants of municipal markets and other municipal owned properties have to vacate their premises before fresh lease agreements can be made.