Property Tax in Chennai: Meaning, Tax Rates & Tax Rate Calculator

Income Tax

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.

Property Tax Rates in Chennai

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:

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.

Property Tax Calculation in Chennai 

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.

For example,

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:

Also Read: Section 24 of Income Tax Act – Tax Benefit on Home Loans

How to Pay Property Tax in Chennai Online?

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.

How to Receive Chennai Property Tax Receipt?

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.

Last Date for Paying Property Tax in Chennai

The last date for Chennai property tax payment for the respective half-yearly cycle is as follows:

• First cycle – September 31
• Second cycle – March 31

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.

Also Read: GHMC Property Tax in Hyderabad: Calculation, Payment, Due Dates, Penalty & Exemptions

List of Zones under Greater Chennai Corporation

The following table mentions the various zone numbers for property tax in Chennai:

Final Word

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.

FAQs on Property Tax in Chennai 

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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.