Property Tax Chennai

Property Tax Chennai – How to Calculate Accurately?

Law

Among all the other taxes, the property tax Chennai is one of the most vital revenues for the government. They have specific rules that the residents have to abide by. So, if you plan to buy any property in Chennai, start scrolling down. We will help you will all the possible information you would need to know about property tax in Chennai!

About Property tax Chennai

The corporation and the state government of every state decide the rates of taxes. It is essential you know that ‘sotthu vari’ is another name of property tax in Tamil Nadu.

Furthermore, there are 15 zones of the Chennai Municipal Corporation. And you can make the payment either offline or online.

The due date of the property tax Chennai is at March 1 and September 31 each year. Besides, if you delay your taxes, then every month, 1% will be added as a penalty.

Last financial year, they have collected Rs. 45 crores of taxes in 15 days from the October to March cycle.

More info about the property tax Chennai

As per the rule, Chennai Corporation accepts the reasonable letting value (RLV) that arrives at the annual rental value (ARV). Hence it helps to calculate the six months tax for the properties in Chennai corporation limits.

Furthermore, RLV is calculated to the rate per square foot. The corporation fixes the rate for both residential and non-residential assets as well as the location of the building.

The rate per square feet in a residential area:

It is between 60 paisa – Rs. 2.40 per square feet.

The rate per square feet in non-residential area:

It is between Rs. 4 – Rs. 12 per square foot.

You can check your zone on the official site. It should be noted that property tax Chennai was last reviewed in 1998.

Moreover, it is reviewed every four years, and it is amplified by 25% for residential buildings and 100% for commercial buildings.

However, in August 2017, the Madras High Court criticized Chennai municipal corporation as they did not revise the tax since 1998. According to the court’s valuation, as they did not review and have lost more than Rs. 1500 crores.

What is the residential, non-residential property?

Residential properties are individual flats, apartments, and houses which are not used for business or commercial purposes. In comparison, non-residential properties are the malls, offices, banquet, movie theatres, and shops.

How to Find Property Tax Bill Number Chennai?

The half-yearly tax is the percentage of the annual value. Also, it has added 10% of the library cess on the taxes. Below is the list of how it occurs.

Particulars and the tax percentage half-yearly:

  • Firstly, if the annual value is from Rs. 1 – Rs 500, the tax percentage is 3.75%.
  • Secondly, the annual value is from Rs 501 – Rs. 1000. Thus, the tax percentage will be 6.75%.
  • Thirdly, the yearly value is Rs. 1001 – Rs. 5000. Thus the percentage of the tax is 7.75%.
  • Lastly, if it is more than Rs. 5000 then the half-yearly property tax percentage will be 9%.

What is the annual value of the building and land?

Property tax Chennai calculates the annual value after considering a few things. Which are:

  • Firstly, the plinth area multiple with the basic rate of per square feet. Thus, it equals the Monthly RLV.
  • Therefore, let’s assume the plinth area is 100 and Re. 1 is the basic monthly rate RLV is Rs. 100.
  • Secondly, the monthly rate is multiplied by 12. Thus, it equals ARV minus Rs. 100 multiplied by 12. Therefore, it is Rs. 1,200.
  • Thirdly, now you have to remove 10% from the ARV attribute of the land minus Rs. 1,200 minus 120, which equals Rs. 1,080.
  • Therefore Rs. 1200 – Rs. 120 = Rs. 1,080.
  • Fourthly, 90% of the RV is less 10% reduction on the property – Rs. 1,080 – Rs. 108 = Rs. 972.
  • Lastly, disparage the value of the property + 10% value that will reduce the value of the land = annual value of the property and the land – Rs. 972 added with Rs. 120 is equal to Rs. 1,092.
  • Moreover, 10.92 is used to calculate the annual value for every property. Thus, for the annual value of any property, multiply 10.92 with the MRV.
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The formula for the value at ARV of the construction only is 10% * 12 * MRV.

However, the method is different for few building types, such as:

  • Hospital or Nursing Home
  • Kalyana Mandapam
  • Movie Theatre
  • Star Hotels and Guest House

Due date and the penalty

The due date for the property tax Chennai is on March 31 and September 31.

Also, the penalty is an additional 1% every month if there is a delay in the payment.

Calculation of Property Tax Chennai

Online calculation

Citizens have to create an account with a user id and password. After that, fill it up with proper details such as the location of the building, name of the assesses, and division. Also, you have to give your full address with the contact information.

Once done, submit it to the online portal for the calculation of the property tax.

Offline calculation

Firstly, TACTV counters will take the application form from the assesses. It is then present in the Greater Chennai Corporation sites or at the zonal offices or headquarters.

When the individual is submitting the documents, he must submit their last receipt of tax paid and all the registration documents.

Secondly, once the officers acknowledge it, you will receive an SMS for that.

Thirdly, the assessor will inspect the application, and they will calculate the newly made properties. After this, the officer will accept the application.

Fourthly, the approval commissioner verifies the application. Then you have to submit it to the Assessment Committee.

Fifthly, then the Assessment Committee has to select the offers for the inspection randomly. They do this to verifies the accuracy of the calculation and to accept the applications post such inspection.

Lastly, the committee accepts that the assesses take the new calculation instruction (Notice 6). Also, the assesses will be notified through SMS.

Also, transfer of the property taxes, appeals concerning the property taxes, and the modification of the assets follow this rule.

Moreover, Notice 7 is the new assessment for the modification of the assets. Notice 10 is the new assessment for the transfer of property taxes.

How to Pay Property Tax Online and Offline?

You can pay the property tax in Chennai either offline or online. Check out both the ways:

Online payment

Firstly, visit www.chennaicorporation.gov.in.

Secondly, under online civic services, click on the ‘property tax online payment.’

Thirdly, put the correct location details. You can find that on the previous receipt. After that, click on submit.

Lastly, you will see ‘pay online.’ Pay with either through net banking, debit card, or credit card.

Offline payment

Demand draft or cheque should be to the ‘The Revenue Officer, Corporation of Chennai.’ Moreover, the payment should go through:

Firstly, tax collectors.

Then, it should go through any authorized banks such as HDFC, Tamil Nadu Mercantile Bank, IDBI, Kotak Mahindra Bank, Indus land bank, Canara Bank, Karur Vysya Bank, Yes Bank, City Union Bank, Indian Overseas Bank, or Lakshmi Vilas bank.

Thirdly, go to E-Seva centers that the government of Tamil Nadu sets.

Lastly, go to the Tamil Nadu Arasu Cable Television Corporation (TACTC). They are set in all the Taluk Offices in the Chennai district.

Exemption from property tax Chennai

Properties occupied by the foreign missions and Central Government are exempted.

Before private education organizations were exempted, too, but it was abolished in March 2018.

How to fix the annual value for the land on rent?

Firstly, 12 multiply with the monthly rent fixed between the lessee and lessor = annual value.

Secondly, no reduction is permitted for the vacant land. For example, per 2,400 square feet = Rs. 8 every month.

Annual value will be Rs. 8 * 12 = Rs. 96 every month.

Lastly, a method for the annual value of the land being separated is annual rent – 10% * 12 * MRV.

Percentage of the Annual Rent Value:

Firstly, if the annual value is Re. 1 – Rs. 500. Then general tax is 3.75%, educational tax 2.50%. Thus, the total is 6.25%. Lib. (less) will be 0.37%.

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Secondly, the value is between Rs. 501 – Rs. 1000. Then general tax is 6.75%, educational tax 2.50%. Thus, the total is 9.25%. Lib. (less) will be 0.67%.

Thirdly, the value is between Rs. 1001 – Rs. 5000. Then general tax is 7.75%, educational tax 2.50%. Thus, the total is 10.25%. Lib. (less) will be 0.77%.

Lastly, if the annual value is above Rs. 5000. Then general tax is 9%, educational tax 2.50%. Thus, the total is 11.50%. Lib. (less) will be 0.90%.

Concessions that are allowed on the tax

Firstly, from general taxes, 10% library cess will be calculated.

Secondly, thatched, tiled, and different structures will get a 20% refund for the monthly payment value. However, these are except the one with the terrace roofing.

Thirdly, 25% refund in monthly payment value for the residential constructions occupied by an owner.

Fourth, 10% refund in monthly payment value for the commercial constructions owned by a landlord.

Lastly, a reduction of 1% will be given each year for properties that are more than four years old. However, the maximum limit is 25%.

Reduction of penalty on the late payment

The civic body decided in 2020 to cut down on the penalty. This is mainly because of the Covid19 pandemic.

Thus, people, who have delayed it were accountable to pay 2%. But now the civic body has reduced it to 0.5%.

According to the record, till October 2020, about 1.4 lakh assesses have paid their tax. At the same time, about 10.8 lakh is still needed to be paid from October 2020 – March 2021.

Moreover, who have paid their taxes will have some benefit that will be adjusted in the next term.

Solid waste tax disposal

From the start of this year, 2021, the authorizes decided to have a charge on a garbage removal tax from the inhabitants. And citizens can pay this disposal tax with their property tax.

Although, the citizens complain about this tax as they pay similar tax already. Some citizens in the Pallavaram area also complained outside the local municipality office.

What will happen if citizens do not pay the tax?

If the citizen does not pay the tax, then the penalty will be 2%. It should be added if the tax is not paid within 15 days.

However, if you are going to change the property name, there is no due on the taxes.

How to get the property tax payment receipt in Chennai?

On the official website, click on the option ‘Online Payment Receipt.’ In the next step, you will be required to choose the zone number, division code, bill number, etc., to get the property tax receipt online.

Collection of property tax in 2020

Even though, due to Covid 19, the authorities have received more taxes than 2019. Moreover, they assume they will get Rs. 350 crores by the end of March 2021. But they have received almost 45% more than their target.

Property tax collection for the last three years:

2018 – Rs. 142 crores

2019 – Rs. 132 crores

2020 – Rs. 152 crores

Recent information about the property tax

Revenue through the tax assessed to decline. It is said that in 2021 – 2022, the property and the collection will be decreased. Moreover, this hasn’t happened in the last three years.

According to the civic body, the revenue will be Rs. 2,935 crores, whereas the expenditure will be Rs. 3,481 crores.

Common FAQs

Will there be any extra charges for paying the tax online?

There are some minimal charges that you might have to pay. However, it depends from bank to bank.

What if there an issue while paying the tax online?

Explain your situation to the revenue department. Also, you should call on 044- 25619258 for any issues related to payment.

Where to pay the tax is unable to do it online?

Some walk-in counters of the banks take the property tax. Electronic Clearing Scheme (ECS) is the one who handles all the offline payment of the tax.

What if I bought a new house and lost the receipt of the payment? How do you find the tax number of the new house?

Suppose you have lost the receipt, contact the authorities immediately. They will guide you with it.

Before purchasing the house, always check the property deed and all other documents.

Final Thoughts

It is advisable to the property tax on time. The more you delay it, the penalty you have to pay. And always visit their official website for the updated information.

Shusree Mukherjee

Writing allows me to pour my heart out in words. So, that's what I've been doing for the past 6 years. I strive to bring in a change in the world by taking tiny steps of curating the right message that needs to be conveyed.

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