The Secunderabad Cantonment Board (SCB) has decided to take over direct collection of Transfer of Property Tax (TPT) starting June, marking a significant administrative shift in the Hyderabad region.
Board Approves Direct Collection Move
The decision was approved unanimously in a board meeting, ending the existing system where the Registration and Stamps Department collected TPT on behalf of SCB.
Going forward:
- Tax will be deposited directly into the Cantonment Fund Account (CFA)
- SCB will have greater financial control and transparency
Resolution to Be Sent for Formal Approval
Local MLA N Sri Ganesh confirmed that the resolution will be forwarded to:
- Registration and Stamps Department
- Bowenpally Sub-Registrar Office (SRO)
to formalise the transition.
No Change in Overall Charges
Despite the administrative change, the total property registration cost remains 11%, including:
- 5.5% stamp duty
- 0.5% registration fee
- 5% TPT
Demand for Lower Tax Rates
There are growing demands to reduce the TPT rate:
- Civic groups argue it should be reduced to 1.5%
- Residents point out that nearby Greater Hyderabad Municipal Corporation (GHMC) areas charge around 7.5% total fees
However, any reduction depends on approval from the Ministry of Defence, especially as ₹1,200 crore in service charges remain pending.
Criticism from Civic Groups
Sanki Ravinder Babu of Cantonment Vikas Manch criticized the current rate, calling for immediate relief to residents.
Implementation and Oversight
The transition process will be handled by:
- CEO Arvind Kumar Dwivedi
- Board President S Rajeev
The CEO is authorized to issue necessary public notifications.
Background of TPT Collection
- TPT has been levied at 5% since 1956 in the cantonment area
- The state government previously collected and remitted the tax
- Remittances were discontinued in October 2016, prompting the need for reform
