Many people are unaware that property tax must be paid to the government for land. Regulations specify that vacant land tax must be paid by everyone without fail. However, since there is no need to pay tax on land every year for residential plots, many people are unaware of this requirement. But, every individual who owns residential land or vacant land must pay the vacant land tax. This tax must be paid when applying for residential construction on the land or when the land is being regularised under the layout regularisation scheme.
Many people are unaware that property tax must be paid to the government for land. Regulations specify that vacant land tax must be paid by everyone without fail. However, since there is no need to pay tax on land every year for residential plots, many people are unaware of this requirement. But every individual who owns residential land or vacant land must pay the vacant land tax. This tax must be paid when applying for residential construction on the land or when the land is being regularised under the layout regularisation scheme.
For lands registered before April 1, 2022, the VLT (Vacant Land Tax) will be levied under the jurisdiction of the Circle Deputy Commissioner. When the landowner applies, the concerned authorities will review the documents, generate the VLT number, and impose the tax for up to a maximum of three years. For lands registered after April 1, 2022, the VLT will already be applicable. If a construction permit is requested for such land, any outstanding VLT dues will need to be paid. For lands registered before April 1, 2022, within the VLT jurisdiction, if an application for construction is made, the construction fee will need to be paid along with the VLT charges for the year.
For the sale deed related to the purchase approved by the Sub-Registrar, the documents linked to it, such as the ones certified by a gazetted officer, LRS regularisation documents, EC (Encumbrance Certificate), market value certificate, etc., can be submitted to the municipal circle office. The relevant bill collector or tax inspector will then review these documents and forward the application to the Deputy Commissioner. According to Section 94(A) of the Telangana Municipal Act-2019, VLT (Vacant Land Tax) is applicable to lands that are suitable for construction or areas where construction is permitted. VLT is collected when permission is granted for vacant lands in all municipalities and corporations in the state.
In the past, land registration values across the state were lower. However, in the last decade, land prices have increased threefold and even more than doubled. As a result, the VLT value in towns and cities has significantly increased. With VLT being levied along with other charges at the time of construction permits, it has led to a financial burden on property owners.
