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Chennai Property tax

Property tax is a direct tax that is paid by the taxpayer to the state government for the maintenance of civic amenities in the state. The tax is collected by the municipal corporations of the state. It has to be paid by property owners in the state. The property tax is a major source of revenue for the state government of our country. The state government can maintain all the public facilities as the property owners pay their property tax. This tax is to be paid semi-annually and the calculation is done based on factors such as area, locality etc.

The municipality that is appointed for the collection of Chennai property tax is The Greater Chennai Corporation. The Greater Chennai Corporation uses reasonable letting value (RLV) to arrive at the annual letting value(ALV) that is used to calculate half-yearly tax for any property within Chennai City Corporation limits. The RLV is calculated based on the rate per square foot that is decided on the location of the residential and non-residential properties. The basic rates range between 0.60 to 2.4 per square foot for residential properties and 4 to 12 in the case of non-residential properties.

Chennai Municipal Corporation

The Chennai Municipal Corporation has 15 zones. The property tax was to be revised every four years and was expected to increase at the rate of 25% for residential properties and 100% for non-residential properties. The Madras High Court has given an ultimatum to the Chennai Municipal Corporation to revise the property tax rates and send the revised rates. A loss of 1500 crore has been incurred because of the unchanged property tax rates. The Chennai Municipal Corporation is expecting an increase in revenue of Rs. 150 crores every year after the revision of the above.

The different zones and their ward numbers are mentioned below

Zone numberName of the zoneWard number
IThiruvotriyur1-14
IIManali15-21
IIIMadhavaram22-33
IVTondiarpet34-48
VRoyapuram49-63
VIThiruvika Nagar64-78
VIIAmbattur79-93
VIIIAnnanagar94-108
IXTeynampet109-126
XKodambakkam127-142
XIValasaravakkam143-155
XIIAlandur156-177
XIIIAdyar170-182
XIVPerungudi168,169, 183-191
XVShollingannur192-200

Exemptions from Property Tax

Properties owned by the Central government and buildings occupied by foreign missions are exempt from tax under the Chennai Corporation.

Concessions Provided

  • 20% rebate on monthly reasonable letting value in case of semi-permanent buildings
  • 25% rebate on monthly RLV in case of owner-occupied residential buildings and 10% rebate in case of the owner-occupied commercial part of the buildings
  • 1% depreciation is also provided every year for buildings more than 4 years old (subject to a maximum rebate of 25%)

Calculation of Chennai Property Tax

The following factors are considered while calculating the annual value for Chennai Property Tax

  • Plinth area * basic rate per square foot = Monthly RLV
  • Monthly RLV * 12= ARV
  • Deduct 10% ARV that is attributable to the value of land
  • 90% ARV less 10% depreciation on the building
  • Depreciated value of building plus 10% value that was attributable to the value of land = Annual value of land and building

For example

Plinth area = 100 Basic rate = Re 1

  • 100*1 = Rs 100 = Monthly RLV
  • 100* 12 = RS 1200 = ARV
  • Rs 1200 - Rs 120 = Rs 1080
  • Rs 1080 - Rs 108 = Rs 972
  • Rs 972 - Rs 120 = Rs 1092

So, 10.92 is the common factor for an annual value for all buildings. To arrive at the annual value, the taxpayer can multiply the MRV by 10.92.

The formula for arriving at ARV of a superstructure = 10% *(MRV*12)

The calculation of annual value differs for nursing homes/ hospitals, hotels or lodges, cinemas or theaters and Kalyana mandapams.

The half-yearly tax is a percentage of annual value and a 10% library cess on property tax. The percentage is given as follows

Particulars

The annual value is between Re 1 and Rs 500

The annual value is between Rs 501 and Rs 1000

The annual value between Rs. 1001 and Rs 5000

The annual value above Rs 5000

ParticularsHalf-yearly Property Tax
Annual value is between Re 1 and Rs 5003.75%
Annual value is between Rs 501 and Rs 10006.75%
Annual value between Rs. 1001 and Rs 50007.75%
Annual value above Rs 50009%

Assessment of Property Tax

Online Assessment

The taxpayer can submit an online assessment of the property tax using the available online portal. The taxpayer has to create a user id and password and furnish other details such as division, name of the assessee, location etc.

Offline Assessment

  • The assessee shall submit a filled-in application form, registered documents that are in favor of the taxpayer, and the last paid receipt if any at any of the TACTV counters located in the Greater Chennai Corporation premises or concerned zonal offices/headquarters.
  • The acknowledgement of the same is sent to the taxpayer via SMS
  • The application is submitted to the assessor and the scrutiny of the new building and the premises is done and submitted to the concerned officer.
  • The application will be submitted to the assessment committee after the field assessment by the assessing officer.
  • The approval officer will randomly select applications for scrutiny to determine the correctness of these applications.
  • After the committee approves the assessee receives the new assessment order.

The following procedure can be followed in case of the modification of a building, assessment of property tax, appeal for property tax, and transfer of property tax.

Steps for Payment of Property Tax

The payment for property tax can be made online or offline. The steps for online payment are as follows:

  • Visit the official website of the Chennai Municipal Corporation
  • Choose the option payment of property tax online under the option online civic services
  • Enter the property location details which can be found under the previous tax paid receipt and click submit.

By choosing to pay online you can pay via credit cards, debit cards or net banking. The net banking option has a zero transaction fee associated with it.

Offline Payment

A cheque or a demand draft is drawn in favor of ‘The Revenue Officer, Corporation of Chennai, and payment can be made in the following ways

  • Tax collectors
  • Authorized banks
  • ESeva centers set up by the Tamil Nadu government
  • Tamil Nadu Arasu Cable Television Corporation was established at all offices of the Chennai district.

Due Dates and Penalties

The due date for payment of property tax is September 31 and March 31. A penalty of 1% per month is charged for non-payment of the tax.

Online property Tax Receipt

Visit https://chennaicorporation.gov.in/gcc/online-payment/property-tax/property-tax-receipt/

Enter the details such as zone number, division code, district number etc.

After clicking submit a receipt can be availed for payment made concerning property tax.

Chennai Property Tax Calculator

Visit the official site of Chennai Corporation.

The next step is to enter the floor details and residential and non-residential sections.

Click on calculate demand to calculate the amount of corporation tax to be paid semi-annually.

FAQs

1. Are any charges levied if tax is paid online?

No, there is no fee for payment of property tax online.

2. Is it possible to register the mobile number online?

Yes, the mobile number can be registered on the official website of Chennai Municipal Corporation.

3. What is the last date of payment?

The last date p payment is 31st September and 31st March

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