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Property tax is levied on building and vacant land unless specifically exempted. The municipality that is entrusted with the task of regulating, managing and collecting property tax in Chennai is ‘The Greater Chennai Corporation’.
As per the regulation, Greater Chennai Corporation adopts reasonable letting value (RLV) to arrive at annual rental value (ARV) and this, in turn, 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.
The basic rate ranges between Rs 0.60 per sq ft and Rs 2.40 per sq ft in the case of residential properties and between Rs 4 per sq ft and Rs 12 per sq ft in the case of non-residential properties.
Chennai municipal corporation is divided into 15 zones. You can know your zone and division here.
It may be noted that Chennai property tax was last revised in the year 1998 and was due for revision every four years and should have been increased by 25% in case of residential property and 100% in case of commercial properties during every revision.
In August 2017 Madras High Court slammed Chennai municipal corporation for not revising the property tax rates since 1998 and as per the Court’s estimation, this non-revision has led to a revenue loss of over Rs 1500 crores.
The Madras HC has directed the municipal corporation to spell out the date by which property tax rates would be revised. However, presently municipal corporation officials are concentrating on rationalisation of property tax which would still increase the revenue by at least 150 crores every year and would like to take up the general revision of property tax after one year.
Half-yearly property tax is a percentage of annual value and 10% library cess on property tax. Percentage of half-yearly property tax is as follows:
|Particulars||Half-yearly property tax %|
|Annual value between Re 1 and Rs 500||3.75%|
|Annual value between Rs 501 and Rs 1000||6.75%|
|Annual value between Rs 1001 and Rs 5000||7.75%|
|Annual value above Rs 5000||9%|
The annual value of land and building
Chennai property tax computation takes into consideration the following factors in arriving at Annual value-
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 with 10.92.
The formula for arriving at ARV of superstructure only
The Due date for payment of property tax is September 31 and March 31
Penalty at 1% per month is charged in case of delayed payment
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, location of the property with complete address and contact number
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.
Property tax payment can be made either online or offline.
Cheque/demand draft shall be drawn in favour of ‘The Revenue Officer, Corporation of Chennai’ and make the payment through any of the following:
Properties owned by the Central Government and buildings occupied by foreign missions are exempt *Recently in March 2018 exemption given to private educational institutions was abolished.