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Property tax in Chennai is a compulsory tax imposed on individuals who own physical assets like homes, office spaces, or other types of property in Chennai city. Whether the property is residential, commercial, or rented out, the owner is required to pay this tax to the municipal corporation in Chennai. This tax is mandatory, and non-payment may lead to a penalty charge levied on the property’s assessed value.
This payment is generally made annually or semi-annually, depending on local guidelines. The amount payable is influenced by several factors, including the property’s location, its current market value, and the applicable rules set by the local administration.
The Greater Chennai Corporation (GCC) is the official municipal corporation responsible for collecting property tax in Chennai. The GCC recorded a property tax collection of ₹2,025 Crores in 2023-2024, marking its highest collection to date.
The five-step method used to determine the annual value is as follows:
Step 1: Check the Monthly rental value by using the formula-
Plinth area * Basic Rate per sq. ft.
Step 2: Determine the Annual Rental Value or ARV by multiplying the monthly rental value by the number of months, i.e, Monthly rental value * 12
Step 3: Deduct the annual land value to get the annual building value.
Annual Rental Value - 10% of Annual Rental Value
Step 4: Determine the depreciated value of the building by deducting the depreciation for the building for repairs or maintenance
Annual Building Value - Depreciation
Step 5: Finally, add the annual value of land to the depreciated value of the building to get the Annual Value
Depreciated Value of the Building + Land Value (10% of total ARV)
Note that the property tax calculation in Chennai is dependent on various factors.
Let's consider an example,
Suppose the plinth area is 100, and the basic rate is ₹1.
Monthly Rental Value= Plinth area * Basic Rate per sq. ft, i.e 100*1= ₹100
Annual Rental Value (ARV)= Monthly rental value * 12= ₹100*12= ₹1200
Annual Building Value= ARV- 10% ARV= ₹1200 - ₹120= ₹1080
Depreciated Value of the building= Annual Building Value - 10% Depreciation= ₹1080 -₹108 = ₹972
Annual Value of Land= Depreciated Value of the building + Land Value (10% of total ARV)
= ₹972 + ₹120= ₹1092
This may seem daunting at first. However, you can also use a simplified method of calculating property tax in Chennai for buildings. In this method, you can consider a common factor of 10.92 to determine the annual rental value.
The formula used is,
Annual Value for building= Monthly Rental Value * 10.92
However, in the case of land, there is no depreciation. Therefore, the simplified formula used is,
Annual Value for land= Monthly Rental Value * 12
Additionally, another option for the calculation of property tax in Chennai is the property tax calculator on the GCC’s official website, which can be used to determine the total taxable amount without hassle.
The process of paying Chennai property tax online includes the following steps:
Step 1: Visit the official Greater Chennai Corporation website, https://chennaicorporation.gov.in/gcc/online-payment/property-tax/property-tax-online-payment/
Step 2: Enter the zone number, division code, bill number, and sub-number of the property, ensuring all details are correct.
Step 3: After determining all information is correct, click on ‘Pay Tax’
Step 4: Next, the amount that needs to be paid will be displayed. Choose the ‘Assessment Year’ here.
Offline property tax payments in Chennai can be made through demand drafts or cheques. These need to be in favour of the ‘Revenue Officer, Corporation of Chennai’ to be sent through:
Authorised banks, including some that may accept cash
Tax collectors
Across any of the TACTC (Tamil Nadu Arasu Cable Television Corporation) counters located throughout Chennai
E-seva centres set up by the Tamil Nadu government
Upon completion of the Chennai property tax online payment, you can follow the steps below to download its receipt online.
Step 1: Visit the official website:
https://chennaicorporation.gov.in/gcc/online-payment/property-tax/property-tax-online-payment/
Step 2: Click on ‘Online services’ and then ‘Property Tax.’
Step 3: Click on ‘Property Tax Online Payment Receipt.’
Step 4: Enter the required details, such as the zone number, division number, sub number, and bill number. Refer to your previous tax receipt or GCC citizen portal to find these details.
Step 5: Click ‘Submit’
Step 6: You can now view your receipts here and check your Chennai property tax status.
There may also be exemptions or concessions based on specific criteria.
Exemptions:
Central government-owned properties
Foreign missions occupied buildings
Concessions:
Semi-permanent buildings get a 20% rebate on Monthly Rental Lease Value
Owner-occupied residential buildings can get a 25% rebate on Monthly Rental Lease Value
Owner-occupied commercial portions of the buildings can get a 10% rebate on Monthly Rental Lease Value
Buildings more than 4 years old can avail a 1% depreciation subject to a maximum rebate of 25%
The half-year property tax rates in Chennai are as follows:
If the annual value is between ₹1 to ₹500
General Tax: 3.75%
Education Tax: 2.50%
Total= General Tax + Education Tax = 6.25%
Less: Library cess 0.37%
If the annual value is between ₹501- ₹1,000
General Tax: 6.75%
Education Tax: 2.50%
Total= General Tax + Education Tax = 9.25%
Less: Library cess 0.67%
If the annual value is between ₹1,001- ₹5,000
General Tax: 7.75%
Education Tax: 2.50%
Total= General Tax + Education Tax = 10.25%
Less: Library cess 0.77%
Chennai property tax can be paid in two cycles each year. The last date is 30th September for the first cycle and 31st March for the second cycle.
Failure to pay the property tax before the deadlines can attract a penalty charge of 1% per month on the tax outstanding. This is applicable after a 15-day grace period. However, the government has recently halted this.
The process of paying property tax in Chennai online and offline is simple and hassle-free. Property owners can utilise the available exemptions and concessions at their disposal to reduce the tax burden. However, ensuring the correct and timely payment of property tax is the responsibility of all property owners in Chennai.
Upon understanding how to pay Chennai property tax online, check its status online, too. You can visit the official website of the Greater Chennai Corporation. Select online citizen services, property tax, and then payment status. Enter the required details and check the status.
Depending on the payment method chosen, additional convenience charges could be applicable when paying the property tax in Chennai. Especially in the case of credit card or net banking transactions, there may be charges that vary.
Yes, the Namma Chennai app, which was launched in 2018, can be used to pay property tax in Chennai. This app is ideal for checking tax dues, paying taxes, and accessing receipts.
Yes, in 2022, the rental values for Chennai Property tax were revised. In October 2024, the Greater Chennai Corporation passed a resolution to hike the property tax rate by 6%.
Vacancy remission under Section 105 of the Chennai City Municipal Corporation Act 1919 can be claimed for any residential or non-residential property (rented or owned) that has been left vacant for more than 30 days in a financial year.
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