SCB move to collect property tax directly triggers confusion

Secunderabad Cantonment Board’s plan to directly collect Transfer of Property Tax from June 1 has sparked confusion, with registration officials citing lack of legal backing. Stakeholders warn the move could disrupt property transactions and create hardship for citizens and developers.

Hyderabad: Secunderabad Cantonment Board’s (SCB) decision to directly collect Transfer of Property Tax (TPT) from June 1 has triggered widespread confusion among property owners and developers, as state registration officials claim there is currently no legal provision for such a shift.

The uncertainty started when SCB CEO Arvind Kumar Dwivedi issued a public notice following Cantonment Board members’ approval on April 6 to begin direct collection of TPT charges.

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Sub Registrar Officer (SRO) of the Registration and Stamps Department, Syed Sadiq Ali, who oversees registration of properties within the Secunderabad Cantonment, said, “There is no provision for collecting TPT charges by Secunderabad Cantonment directly. The TPT charges have traditionally been processed only through the Registration and Stamps Department.”

The SRO said the SCB officials had approached him recently to discuss the issue. “We directed them to contact the Commissioner, Registration and Stamps Department, for taking a final decision. So far, I have not received any official orders from the Commissioner,” Sadiq Ali said.

According to SCB’s public notice, a TPT of 5 per cent on sale consideration or document value will be paid directly to SCB prior to registration of property instead of being paid through the State IGRS portal from June 1.

“In case of non-compliance with this procedure and registration without payment or underpayment of the TPT to SCB before registration, it will attract interest at the rate of 1 per cent per month on the due amount and also a penalty under Section 333 of the Cantonments Act, 2006,” the CEO warned.

Non-compliant cases may also lead to denial of municipal services, permissions or approvals, and other legal actions as deemed fit. Any registration or transfer carried out without compliance shall be liable for further legal action as per law, said the SCB official.

Meanwhile, SCB-based NGO Cantonment Vikas Manch condemned the abrupt decision to shift TPT collection directly to the Cantonment Board from June 1, 2026, without taking the State government agencies into confidence, which would ensure smooth property transactions for the public. “This will create confusion and hardship for citizens, builders and property owners,” said Sanki Ravinder Babu, general secretary of the Cantonment Vikas Manch.