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Coimbatore Property Tax

Property tax is a direct tax which is paid by the citizens to the municipal corporations of the state. The property tax forms a major source of revenue for the state government. In turn, the municipal corporations are responsible for the maintenance of all civic amenities in the state. The property tax is to be paid annually in Coimbatore and to the Coimbatore City Municipal Corporation. The calculation of property tax is based on various factors such as construction type, usage type prices in that particular zone etc.

The Coimbatore City Municipal Corporation was established in 1981. In the year 2012, the Coimbatore Municipal corporation was named the best municipal corporation among all the corporations in the state of Tamil Nadu. It is made up of 100 words. The majority of the revenue that is earned by the state government of Tamil Nadu comes from the property tax which is paid by all these wards. The CCMC has incorporated a lot of features in the online services provided to them such as a calculator for the assessment of property tax.

Calculation of Property Tax

The property tax imposed by Coimbatore City Municipal Corporation is calculated based on different factors such as the area of the property, the location of the property, the age of the property and the type of property.

The formula for calculation of property tax is given below

Property tax = build-up area * age factor * base value * type of building* category of use * floor factor

Here, the built-up area is the external perimeter walls measured of the premises. The age factor is the age of the property and how long it has been in existence. The base value is the basic value at which the property tax is calculated. The type of building refers to either residential, non-residential or commercial type building. The category of use is the category for which the property has been used. The floor factor refers to the floor on which the particular property is situated for tax calculations.

The half-yearly tax is calculated as follows

Base street rate (BSR) * building area * 135.40 = Half-yearly tax

To calculate tax, the plinth area has to be known by the assessee. In the case of self-occupied property, the market's current rate per square foot is to be known for similar properties. In case the property is rented then the market rent value of similar properties is to be known. The following details are to be given for the calculation of the tax

  • The total plinth area
  • Building area that is approved
  • Unapproved building area
  • Building usage
  • Location of the building
  • Type of building
  • Age of the building
  • Ward

The rate per square foot depends on the zone in which the property of the assessor lies and can be determined by the area details published by the Coimbatore City Municipal Corporation.

Exemptions and Rebates

Section 24 of the Income-tax Act, 1961 provides two exemptions in the case of properties

The deduction is available if you are a taxpayer and you are entitled to a tax break if income from your house or houses exceeds 30% of the annual value.​​ This income is not taxable then. But in the case of self-occupied property, this rule does not apply.

The interest paid on a loan availed for acquisition, construction and renovation is tax-free. The amount paid over and above the principal component is called the interest. In this situation, you must first apply for the interest deductions while availing of the principle of the loan. The deductions are available in five installments.

Due Dates for Payment of Tax

The property tax has to be paid to the municipal corporation on 31st March and 31st September of each year.

The penalty for non-payment of this tax is 1% per month.

Payment of Tax

The property tax in Coimbatore can be paid either by visiting the ward offices or the office of the Coimbatore City Municipal Corporation.

Online Payment

The taxpayers can pay the property tax online by visiting the official website of the Coimbatore City Municipal Tax Corporation.

A self-assessment form is generated wherein all the details have to be entered. The paid tax online option has to be chosen by the assessee.

The payment gateway is redirected once the payment option is chosen by the assessee. The taxpayer can then choose the method of payment.

A receipt is generated once the payment is done and a print of the same can be submitted to the Coimbatore City Municipal Corporation.

The self-assessment system is quite efficient and provides the taxpayers with an easy way to assess taxes and pay the same.

Offline Payment

The self-assessment receipt can be submitted to the offices of the Coimbatore City Municipal Corporation. The property tax can also be paid by visiting the office of Coimbatore City Municipal Corporation or the other banks and their branches which are authorized to collect property tax. Some of the banks are

1. Indian overseas bank

2. Karur Vysya bank

3. City union bank

4. IDBI

5. HDFC bank

6. Canara bank

7. Tamilnad mercantile bank

8. Kotak Mahindra bank

9. Laxmi Vilas bank

These banks are registered with the Coimbatore City Municipal Corporation and are authorized to collect property tax on behalf of the municipal corporation.

Documents Required for Tax

Application filled in the prescribed form

Ownership documents of the taxpayer

An approved plan and building license copies

Name Transfer for Property Tax

An application form needs to be filled in the prescribed format

The documents related to ownership are needed in this case

A legal heir certificate in case of death and if a will is present

A copy of the updated tax receipt

Property Tax Receipt

The municipal corporation receipt that is received by the assessee has all the details about payment of tax, application number, assessment number, location, cess payable, advances paid and also the total tax payable.

In case the payment method used by the assessee is offline, then the receipt is generated and can be shown to the authorities and kept as proof with the assessee. If the receipt is generated via the online mode, then the printout has to be taken by the assessee and kept for future reference and as proof.

A recent survey suggests that the property tax collected by Coimbatore City Municipal Corporation will be around Rs 180 crores as the property tax rates are revised and the demand goes up to Rs 280 crores. The CCMC had earlier calculated tax based on zones divided by them as A, B and C. The zonisation rate is added to the annual value of buildings to get the general tax. To the general tax, the library and education cess is added to get the total tax payable by the assessee.

The CCMC has a disabled online payment of tax due to revisions expected to be done in the rates.

FAQs

1. What does CCMC stand for?

CCMC stand for Coimbatore City Municipal Corporation

2. Can tax be paid online to CCMC?

Yes, tax can be paid online on the CCMC website

3. What are the due dates for payment of tax?

The due dates are 31st March and 31st September each year

4. What is the penalty for non-payment of tax?

The penalty for non-payment is 1% per month.

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