If you own a flat, building, shop or any other property in Chennai, you are liable to pay property tax to the civic body. Property tax in Chennai or ‘sotthu vari’ is paid to the Greater Chennai Corporation (GCC) on a half-yearly basis.
Seemingly, an increased number of individuals find the property tax calculations overwhelming. Furthermore, most newly shifted residents of Chennai are unaware of the particulars concerning property tax payments in Chennai. If you are one of them, consider reading through the following sections.
The Greater Chennai Corporation property tax rate differs depending upon the type of property. Having said that, the basic property tax rate in the city is as follows:
|Property Type||Tax Rate (per sq. ft.)|
|Residential||Rs. 0.60 to Rs. 2.40|
|Non-residential||Rs. 4 to Rs. 12|
Taking these rates into account, you can manually compute your property tax payable in Chennai. However, manual calculations can often lead to errors. Thus, you can also refer to the Chennai property tax calculator presented on the website of Chennai Municipal Corporation.
The calculation of property tax in Chennai is as follows:
Plinth area x Basic rate/sq. ft. + property’s annual rental value
From the total value, deduct the depreciation amount as well as exemptions to arrive at the final amount due.
Let’s assume that the plinth area and the basic rate per sq. ft. are 2,000 sq. ft. and Re. 1 per sq. ft., respectively.
Thus, the monthly rental value of the property will be = Rs. 2,000.
Similarly, the property’s annual rental value is going to be Rs. 2,000 x 12 – 10% depreciation for the land = Rs. (24,000 – 2,400) i.e. Rs. 21,600.
Now, in the case of maintenance and repairs, you will also have to calculate depreciation at the rate of 10%. The depreciated amount will be calculated based on the annual value of the land. For instance, 10% depreciation on Rs. 21,600 would be Rs. 2,160.
Thus, the depreciated value of this property will be Rs. (21,600 – 2,160) = Rs. 19,440.
To this amount, we will add the value of land, i.e., 10% of Rs. 24,000 = Rs. 2,400.
Thus, the final annual value of the property will be = Rs. (19,440 + 2,400) = Rs. 21,840.
After calculating the annual value of your property, you can refer to the following table to know the various percentages of half-yearly property tax calculation:
|Annual Property Value||Education Tax (%)||General Tax (%)||Total (%)||Library Cess (%)|
|Up to Rs. 500||2.50||3.75||6.25||0.37|
|Rs. 501 – Rs. 1,000||2.50||6.75||9.25||0.67|
|Rs. 1,000 – Rs.5,000||2.50||7.75||10.25||0.77|
|Above Rs. 5,000||2.50||9.00||11.50||0.90|
You can pay Chennai property tax online by following these easy steps:
Step 1: Open the official website of Greater Chennai Corporation
Step 2: Select ‘Property Tax Payment’
Step 3: After that, click on ‘Property Tax Online Payment’
Step 4: On the next page, provide the required information for Chennai property tax online payment. The necessary details include zone number, bill number, division code etc. After that, choose whether you have made any recent modifications to the property or not, and then click on ‘Submit’
Step 5: You can see a new page where you will see the tax amount. Simply choose the relevant assessment period. After that, make the online payment via your preferred payment mode.
Upon completing these steps, you will receive an acknowledgement.
Upon paying the Greater Chennai Corporation property tax online, it is essential for you to collect the tax receipt by following these steps:
Step 1: Visit the official GCC website, locate the Online Services tab and click on ‘Property Tax’.
Step 2: After that, click on ‘Property Tax Online Payment Receipt’
Step 3: On the next page, enter a few details, such as the zone number, division code, bill number, and click on ‘Submit’
Following this, you will get your Chennai Corporation property tax payment receipt.
The last date for Chennai property tax payment for the respective half-yearly cycle is as follows:
Note that failure to pay the tax in time will attract a penalty. Thus, to avoid the extra financial burden, ensure that you do not miss these dates.
The following table mentions the various zone numbers for property tax in Chennai:
|Zone number||Ward number||Zone name|
|I||1 to 14||Thiruvotriyur|
|II||15 to 21||Manali|
|III||22 to 33||Madhavaram|
|IV||34 to 48||Tondiarpet|
|V||49 to 63||Royapuram|
|VI||64 to 78||Thiruvikanagar|
|VII||79 to 93||Ambattur|
|VIII||94 to 108||Anna Nagar|
|IX||109 to 126||Teynampet|
|X||127 to 142||Kodambakkam|
|XI||143 to 155||Valasaravakkam|
|XII||156 to 167||Alandur|
|XIII||170 to 182||Adyar|
|XIV||168, 169, 183 to 191||Perungudi|
|XV||192 to 200||Sholinganallur|
Following this article will help you pay property tax in Chennai in a hassle-free manner. However, before proceeding with the payment, ensure to know the various concessions and exclusions allowed.
Ans: The various concessions that you might get are as follows:
Semi-permanent buildings – 20%
Owner-occupied commercial buildings – 10%%
Owner-occupied residential buildings – 25%
In addition, if your building is more than 4 years old, you can obtain 1% depreciation every year up to a maximum of 25%.
Ans: Properties that the Central Government owns are exempt from property tax in Chennai. Furthermore, properties owned by foreign missions are also not subject to property tax.
Ans: If you are not comfortable with online tax payment, you can simply visit the walk-in counters of certain banks to complete the property tax payment. Remember that this process is done through ECS (Electronic Clearing System) and is semi-online.
Ans: As per the Chennai Municipal Corporation Act, if any individual’s rented or owned building is vacant for more than 30 days in a half-year tax payment schedule, the commissioner can revoke a certain percentage of property tax.
Ans: Recently, the Tamil Nadu Government hiked property tax rates in Chennai. As per the new rule, areas below 600 sq. ft. will be subject to an increased tax rate of 50%, and areas between 600 sq. ft. and 1,200 sq. ft. will be subject to an increased tax rate of 100%.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
|Section 194IB||Section 44AA||Section 80E|
|Section 195||Section 80EEA||Section 80DD|
|Section 80CCC||Section 80GG||Section 80 G|
|Section 54F||Section 1941A||Section 10|
|Section 194Q||Section 192||Section 269SS|
|Section 80DDB||Section 44AD||Section 194C|
|Section 194A||Section 194H||Section 80D|
|Section 80C||Section 80C, 24(b), 80EE & 80EEA||Section 234A|
|Section 50C||Section 80C||Section 80EEA|
|Section 194B||Section 194J||Section 206C|
|Section 80CCG||Section 80 EEB||Section 24Q|
|Section 40b||Section 194C||Section 54EC|
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