Secunderabad Cantonment Board to collect property transfer tax directly from June 1, rate unchanged at 5%

Secunderabad Cantonment Board will directly collect property transfer tax at 5% from June 1, amid calls for rate reduction.

The Secunderabad Cantonment Board (SCB) has resolved to collect Transfer of Property Tax (TPT) directly from applicants, with the revised system set to come into effect from June 1, according to CEO Arvind Kumar Dwivedi.

The decision was taken during a board meeting held on Monday, where officials discussed changes to the mode of collection of TPT charges in the cantonment area. Under the new mechanism, all property transfers within the Secunderabad Cantonment jurisdiction from June 1 onwards will require the TPT to be paid directly to the Cantonment Board. Until now, the tax was being collected through the Sub-Registrar Office at the time of registration.

Mr. Dwivedi clarified that there is no change in the tax rate. The TPT continues to be levied at 5%, a rate that has remained unchanged since it was fixed in 1989.

The Board’s decision comes amid growing demands from residents’ groups seeking a reduction in the TPT rate and a fresh public consultation process. A representation submitted by Cantonment Vikas Manch, an NGO, has urged SCB to revisit the decades-old tax structure and invite objections and suggestions from residents.

Sanki Ravinder Babu, general secretary of the NGO, pointed out that the original notification process in 1989 had limited public awareness and accessibility. He argued that socio-economic conditions, property values and purchasing capacity have changed significantly over the decades, making the continuation of the 5% rate unjustified.

The group also highlighted that in the adjoining Greater Hyderabad Municipal Corporation areas, the TPT rate is 1.5%, and sought parity on grounds of fairness. It has demanded that the rate in the Cantonment area be reduced to not more than 1.5%.