Chennai Property Tax: If an individual owns a flat, building, land, or any similar property in India, they must pay a specific tax. All the states within India are obligated to pay the property tax, including the state of Chennai. As a resident of the state of Chennai, then you must be aware of the particulars related to the property tax payment and Chennai corporation property tax status.
The property tax refers to a prime tax that the local bodies and corporations charge. Every land or building owner must pay and prioritize this tax above all the others. But, if you transferred or shifted recently and are looking for detailed information regarding Chennai property tax, this article is for you!
An informative and useful guide regarding the Chennai property tax is given here, so let’s get started.
Chennai Property Tax Meaning
- What is Chennai Property Tax?
- Concessions provided on the Chennai Property Tax
- What is the calculation method for calculating Chennai Property Tax
- Payment of Chennai Property Tax
- Takeaway
What is Chennai Property Tax?
The Greater Chennai Corporation is a civic body that collects, manages, and regulates the property tax in Chennai. The establishment of this civic body took place on the 29th of September, 1688. The residents of Chennai refer to their property tax by the name of “sothu vari”.
The tax payment can be done both online and offline, and it must be paid within the 31st of September and 31st of March every year. As a taxpayer, one must be aware that the tax amount needs to be paid on a half-yearly basis. For any defaults, a 1% penalty charge is stated for each month.
The basis of the rate of the tax will be on your property type. Therefore, one must have proper knowledge regarding their residential and non-residential properties. As per the latest records, there are 1,75,000 non-residential properties out of 12,40,000 assessed properties.
The properties and buildings that the Central Government and foreign mission owns are given an exemption, i.e., they do not have to pay the property taxes.
Concessions provided on the Chennai Property Tax
The concessions that are provided on the Chennai Property Tax are:
- In the case of semi-permanent buildings, a 20% rebate is given on monthly RLV.
- In the case of non-residential properties, a 25% rebate is given on monthly RLV.
- If the owner has occupied a commercial portion within the building, then a 10% rebate on monthly RLV is given.
- For the buildings that are more than four years, a minimal depreciation percentage of 1% is provided. This can be subject to a maximum 25% rebate.
What is the calculation method for calculating Chennai Property Tax?
Many people look up to financial accountants and advisors to help them calculate their property taxes. This gives them a sense of surety that the amount they are paying is correct. But with just some basic and minimal knowledge, any individual can calculate their tax amount.
Therefore, all those who have doubts regarding your tax amount follow the procedure given below, and you will be able to calculate your property tax alone.
Step 1: Multiply the base street rate per square foot with the plinth area to receive the monthly rental value.
Step 2: Multiply 12 months along with the monthly rental value to get the annual rental value.
Step 3: Deduct 10% of the annual rental value for land value from the total annual rental value. By doing this, you will get the annual rental value of only the building.
Step 4: Discounts based on the usage, nature of occupancy, and the property age are applied to the annual rental value for the building. By doing this, you will arrive at its value of depreciation.
So, therefore, in short, deducting the total discount from the annual rental value for a building will give you the depreciated building value.
Step 5: Sum up the land value, i.e., 10% of total annual rental value, along with the depreciated building value. This will give you the annual rental value of the building and land.
This entire procedure may get too overwhelming for an individual, so there is an easier procedure.
For calculating property tax, the people of Chennai take 10.92 as a common factor. So, considering that,
- If you want to figure out the annual rental value of a building, multiply the monthly rental value with 10.92
- For calculating the annual rental value of land, multiply the monthly rental value by 12.
Note: There is no depreciation amount included within the annual rental value for the land.
The half-yearly property tax is calculated as a certain percentage of the calculated annual value. A different percentage is allotted for different amounts. The table provided below includes the different amounts and their percentage.
| The annual rental value | The general tax or the half-yearly property tax percentage of the annual rental value |
| For Rs. 1 to Rs. 500 | 3.75% |
| For Rs.501 to Rs.1000 | 6.75% |
| For Rs.1001 – Rs.5000 | 7.75% |
| Above Rs.5000 | 9% |
Payment of Chennai Property Tax
The payment of Chennai Property Tax is available both online and offline. This allows the users to pay their taxes without much difficulty easily.
For online payment
Step 1: Log yourself into the official online payment portal of Chennai property tax for the payment. Click on the tab of Online Civic Services. A menu will appear. From there, click on the option of Online Payment.
Step 2: Input property details like ward number, zone number, sub number, and bill number in the required fields. All this information is provided in the receipts of your previous tax payments.
Step 3: Click on submit. You will be taken to a new page that contains the tax amount you owe.
Step 4: Choose your period of assessment and then click on the option of Pay Online.
Step 5: You can select your payment option from the variety of options given there.
Step 6: Click on Submit
If your payment is successful, you will receive a Chennai property tax receipt saying the same.
For offline payment
Many people may not be comfortable with the idea of paying their taxes online. For those, an offline payment method is also available.
Step 1: Draw up a demand draft or cheque with the payable amount to the revenue officer. You can use any medium for payment. For example,
- Authorized Banks
- TACTC or Tamil Nadu Arash Cable Television Corporation
- Government Tax Collectors
- E-Seva centres that are established by the government of Tamil Nadu
Pay your property tax on time using any of the given methods. Not paying on time may result in penalties.
Takeaway
So, therefore paying property tax is extremely important. It saves you from the hassle of legal complications in the future. The Chennai Government allows both online and offline payments, so do not forget to pay your tax on time or else you may have to pay the penalty.
You are hoping that this article will help you in gaining more information about property tax and its payment methods.