Property tax is levied on buildings and vacant land unless specifically exempted. The Greater Chennai Corporation is entrusted with regulating, managing and collecting property tax in Chennai.

As per the regulation, Greater Chennai Corporation adopts reasonable letting value (RLV) to arrive at annual rental value (ARV), which is used to compute half-yearly tax for any property in Chennai City corporation limits. The monthly RLV is computed with reference to the basic rate per sq. feet fixed by the corporation for residential and non-residential properties depending upon the location of the property.

Chennai Municipal Corporation Property Tax Rates

For finding the revised rates for your area please refer to the pdf provided on the Chennai Municipal Corporation website. 

Chennai Property Tax Computation

• Tax Rates - Half-yearly property tax is a percentage of annual value and a 10% library cess on property tax. The percentage of half-yearly property tax is as follows:

• Plinth Area - It refers to the built up area of the of the property.
• Monthly Rental Value = Plinth area * Basic Street Rate per Sq ft.
• Annual Rental Value = Monthly rental value *12
• Building Value - The portion of ARV which is attributable to building alone is called building value.
• Depreciation - Wear and tear on building value could be claimed as depreciation every year.
• Annual Value = Building value minus depreciation on building.
• Land Value = The value that pertains to land only.

Illustration

Assuming 100 as plinth area and 1 Rs as basic rate. Monthly RLV is Rs 100. 

• ARV = Monthly RLV * 12  – Rs 100 *12 = Rs 1,200.
• Deduct 10% from ARV attributable to value of land – Rs 1,200 – 120 = Rs 1080.
• 90% of ARV less 10% depreciation on building – Rs 1080 – 108 = Rs 972.
• Depreciated value of building plus 10% value that was attributable to the value of land = Annual value of land and building – Rs 972 + Rs 120 = Rs 1092.

To put it otherwise, 10.92 is the common factor for calculating an annual value for all buildings. To arrive at the Annual value of any building, multiply MRV by 10.92.

The formula for arriving at ARV of superstructure only

• Method of computing Annual value is different in case of a special type of buildings such as 
  • Nursing home/hospital 
  • Star hotels and lodging houses
  • Cinema theatre 
  • Kalyana mandapam (wedding hall).

Due Date and Penalty 

The due date for payment of property tax is September 30 and March 31

A penalty at 1% per month is charged in case of delayed payment after a 15 days grace period.

Assessment of Property Tax

Online Assessment
Citizens may submit an application for assessment of property tax through an online citizen portal available by creating a user ID and password and furnishing the details such as division, name of the assessee, and location of the property with complete address and contact number.

Offline Assessment

• The assessee shall submit a filled application form, copy of registered documents in his/her favour, and last tax paid receipt if any at any of TACTV counters located in Greater Chennai Corporation premises or concerned zonal offices/headquarters.
• An acknowledgement will be sent to the applicant through SMS for receipt of the request.
• The application will be scrutinised by the Assessor and he/she will measure the newly constructed building and a proposal will be submitted to the concerned officer.
• The proposal will be submitted to the Assessment Committee post-field verification by the approval officer.
• An assessment committee will randomly select the proposals for scrutiny in order to verify the correctness of the assessments and approve the proposals post such scrutiny.
• The committee approves and subsequently, the assessee receives the new assessment order(Notice 6). The assessments are also informed through SMS.

The above procedure can be followed even in case of modification of building, appeal with respect to property tax and transfer of property tax. New assessment order (Notice 7) will be issued in case of modification of property, Notice 10 in case of appeal and Notice 9 will be issued in case of transfer of property tax.

Steps for Payment of Chennai Property Tax

Property tax payments can be made either online or offline. 

Online Payment

Step 1: Visit the official page at https://chennaicorporation.gov.in/gcc/online-payment/property-tax/property-tax-online-payment/

Step 2: Next, enter the zone number, division code, bill number, and sub number. The details can be found on your bill.

Step 3: Click on 'Pay Tax'.

Step 4: On the next page, the amount that must be paid will be displayed. Choose the assessment year.

Step 5: Choose the mode of payment.

You will receive an acknowledgement once the bill has been paid.

Offline Payment 

Cheque/demand draft shall be drawn in favour of ‘The Revenue Officer, Corporation of Chennai’ and make the payment through any of the following:

• Tax collectors
• Authorised banks (cash is also acceptable) i.e., Indian Overseas Bank, City Union Bank, Karur Vysya Bank, HDFC, IDBI, Canara bank, Tamilnadu Mercantile Bank, Kotak Mahindra Bank, Lakshmi Vilas Bank, Yes Bank and Indusland bank
• E-Seva centres (Common Service Centres) set up by Tamilnadu Government. Here is the List of CSC
• Tamil Nadu Arasu Cable Television Corporation (TACTC) established in all Taluk Offices of Chennai District

The payment for the property tax can also be made through “Namma Chennai” app of Chennai Municipal Corporation.

Exemption/Concession from Payment of Property Tax

Exemption 
Properties owned by the Central Government and buildings occupied by foreign missions are exempt.

Concessions

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

Chennai Property Tax Calculator

The procedure to use the property tax calculator is mentioned below:

• Visit https://erp.chennaicorporation.gov.in/ptis/citizen/citizenCalc.action
• Next, you will need to enter Floor Details, Residential Portion and Non-Residential portion details.
• Click on 'Calculate Demand', after that you are able to see details of the computation of the Demand.

The online calculator can be used only for test purposes.

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