As a citizen of India, you must contribute towards the development of the country by paying taxes legitimately but on the other hand it is also your right to learn thoroughly about the same before you pay the same.
Own a house or planning to own one in Chennai? If yes, then you might be aware that property tax varies from state to state in India. And so, you need to know the amount of property tax that you will be liable to pay each year once you own a house. Since you have landed up here, you won’t really have to put in lots of effort in collecting the information of property tax in Chennai as I have covered it all for you.
Let’s begin with-
Introduction to Property Tax in Chennai
As a property owner, you will be obliged to pay your property tax to the Greater Chennai Corporation (GCC), this municipality is entrusted with the regulation, management and collection of property tax in Chennai.The tax collected by the GCC from city property owners is used to fund basic public services such as road construction, local infrastructure improvements, school construction, and various other civic services.
For convenience, the Chennai Municipal Corporation is further divided into 15 zones namely-
Name of the Zone
168, 169, 183-191
Residential and Non-Residential Property in Chennai
- Individual houses, flats and apartments that have not been rented out for commercial/ business purposes, are treated as residential for tax purposes.
- Shops, offices, malls, movie theatres and party or marriage halls, are considered non-residential.
Tax Calculation- Property Tax in Chennai
Greater Chennai Corporation uses the Reasonable Letting Value (RLV) method, also known as Monthly Rental Value for property tax calculation in Chennai.
To calculate the property tax for your property in Chennai, the very first thing that you’re supposed to do is to arrive at the Annual Value of the property. And to arrive at the Annual value of the property, you will have to calculate the monthly rental value. The formula for the same is as follows;
Monthly Rental Value = Plinth Area x Basic Rate per sq. ft.
- The Basic Rate per Square feet will be based on the location of your property location. The property taxes vary from locality to locality in Chennai. The Zone, Ward, and street locational values of your residence determine the base rate per square feet of your property tax.
However, the basic rates are as follows
Basic Rates (Rs.) Per Sq.Ft
- For the Plinth Area, the total built-up area of your house like carpet area, walls, if living in apartments, a percentage of the commonly shared spaces like parking, stairs etc. will be considered for computing the same
Once you get your hands on the monthly rental value, it is then easy to calculate the Annual Rental Value. The formula for the same is as follows- Annual Rental Value = Monthly Rental Value x 12 – 10%
Tax Calculator- Property Tax in Chennai
- If you wish to make quick calculations of your property tax, then the simplest and most accurate method for property tax calculation is through the online property tax calculator.
- You will be required to fill in details such as Type of Building, Area, Location, Street, Type of Occupancy and the number of floors. Once you are done filling out the asked details, click on the submit button
- You will have the payable property tax amount displayed on your screen
Property Tax Payment in Chennai - Online
- Visit the official website https://chennaicorporation.gov.in/
- Click on the ‘Online Civic Services’ option available in the right-hand bar
- Click on ‘Property Tax’ and then on the ‘Property Tax Online Payment’
- Enter your property location details along with the Property Bill No. which can be found on the property receipt of last year. Click on ‘Submit’
- By choosing ‘pay online’ option, pay either by using Credit Card, Debit Card or through Net Banking at a zero transaction fee property Tax
Payment in Chennai – Offline
- If you prefer offline modes for paying your property tax then the Cheque/ Demand Draft shall be drawn in the favor of ‘The Revenue Officer, Corporation of Chennai’
- You can make the payments through any of the following methods- Tax collectors, Authorized banks, E-seva centers and Tamil Nadu Arasu Cable Television Corporation (TACTC) in the Taluk Offices
Here’s the list of authorized banks in Chennai eligible for receiving property tax payments-
- Indian Overseas Bank
- Indian Bank
- Punjab National Bank
- City Union bank
- Karur Vysya bank
- Canara bankTamilnadu
- Mercantile Bank
- Kotak Mahindra Bank
- Lakshmi Vilas Bank
- State Bank of India
- Yes Bank
- Indusland Bank
Due date and Penalty- Property Tax in Chennai
- The due date for the payment of property tax in Chennai is the 31st of March and the 31st of September of every year.
- The penalty for delayed payment of property taxes is 1% of the total tax amount to be paid. This would increase by 1% for every month past the due date.
Exemptions- Property Tax in Chennai
- Central government-owned properties
- Buildings occupied by foreign missions
Concessions- Property Tax in Chennai
- If you own a semi-permanent house, you are eligible for a 20% rebate on monthly RLV value.
- 25% rebate on monthly RLV is applicable for owner-occupied residential properties and 10% rebate in case of owner-occupied commercial portion of the property.
- 1% depreciation is provided each year for buildings more than 4 years old (subject to a maximum of 25%)
Frequently Asked Questions
1. Are there any extra charges for paying property tax in Chennai online?
If you are using a credit card or net banking, there are nominal charges that could vary from time to time.
2. What if I face problems while paying my property tax online?
You can contact the revenue department and apprise them. You can also call on 044- 25619258 for payment-related complaints.
3. Where can I pay the property tax if I am unable to do it online?
You can do so by visiting the walk-in counters of select banks. Chennai property tax collection through offline medium is done by Electronic Clearing Scheme (ECS).