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Property Tax In Chennai

In India, property tax is an amount paid by property owners to the municipal corporation of their area. Property here includes all tangible real estate property, like factory building, office building, flats, residential house godowns, shops, etc.

Individuals who own real estate in Chennai are required to pay property tax to civic body, the Greater Chennai Corporation (GCC), on a half-yearly basis. Established on 29th September 1688, the Greater Chennai Corporation is the oldest municipal institution in the country. The Corporation is headed by the Mayor, who presides over 200 councillors, with each representing one of the 200 wards of the city. The funds collected by the municipal institution in the form of property taxes are used to provide necessary civic facilities and services.

Formula for Chennai Property Tax Computation

The Greater Chennai Corporation has recently devised a new formula for computation of property tax. The calculation is as per the street that the property is in, and not the area - which was how it was earlier done. The assessment also factors in the cost of construction and property value.

Property tax has to be rationalized as per the below formula: *

Half Yearly Tax = Base Street Rate (BSR) x Area of the Building x 135.40 (Factor)

(135.40 is based on the depreciation value, maintenance and land value)

Calculation of BSR = Monthly Rental Value / 800

Monthly Rental Value = Annual Rental Value / 12

Annual Rental Value = Value of the Property x 0.35%

Value of the Property = (Area x Guideline Value) + (Cost of Construction) + (22.5% of Cost of Construction) + (20% of Building Cost)

Cost of Construction = Building Area x PWD Rate

Note:

  • For AF Block, Anna Nagar, the Base Street Rate is presently 1. Considering that the GO has stated that property tax can be raised up to 50%, the revised BSR will be 1.5%.

  • The base rate for added area shall be increased by 10%.

Steps for Payment of Chennai Property Tax

Property tax can be paid to the Corporation either through the online or offline mode. Should an individual choose the offline mode, he or she can write a cheque or demand draft in favour of “The Revenue Officer, Corporation of Chennai”. This can be delivered via tax collectors, authorized banks (like HDFC, IDBI, Canara Bank, Lakshmi Vilas Bank, Yes bank, Indian Overseas Bank, the City Union Bank, Karur Vysya Bank, Tamilnad Mercantile Bank, Kotak Mahindra Bank and IndusInd Bank) or E-seva centres. In the online mode, users have the option of making tax payment through the website of the Greater Chennai Corporation using debit card, credit card and even via net banking. For online payments, there is nil transaction fee.

In case one opts for the online payment route, the following steps need to be followed:

  • Go to the official website of Greater Chennai Corporation and select Online Civic Services tab.

  • Click on Property Tax option and then select Property Tax Online Payment.

  • Enter Zone No., Ward No., Bill No. and Sub No. and press Submit to make the payment.

Chennai Property Tax Calculator

The Greater Chennai Corporation has made available Property Tax Calculator facility on its website that allows users to check the details of the Calculation of Demand. Property Tax Calculator can be found on the Corporation’s homepage. To view the Street Rate where the property is situated, the Property ID is required. The Property ID is a 13-digit unique number, where the first two figures represent the Zone, then the next three figures represent the Ward, the five digits following it represent the Bill Number and the last three digits represent the Sub Number.

The contents of the tax calculator are Floor Details, Residential Portion (I - Owner - Permanent and Semi Permanent and ii - Tenant - Permanent and Semi Permanent) and Non-Residential Portion (i - Owner - Permanent and Semi Permanent and ii - Tenant - Permanent and Semi Permanent). Users have the option of adding floors. Once all the necessary details are entered, click on Calculate Demand.

Exemption/Concession from Payment of Property Tax

Exemptions -

  • Central government-owned properties
  • Buildings occupied by foreign missions

Concessions -

  • For semi-permanent buildings, 20% rebate on monthly RLV
  • For owner-occupied residential buildings, 25% rebate on monthly RLV
  • For owner-occupied commercial portion of the building, 10% rebate
  • % depreciation is provided on an annual basis for buildings older than 4 years (maximum rebate of 25%)

Frequently Asked Questions

Can I pay property taxes in instalments?

At present, there is no such provision for paying tax in instalments.

How many wards are there in Chennai Corporation?

There are presently 200 wards, of which 26 have been reserved for scheduled castes and tribes, while 58 are reserved for women.

Can I pay property tax online in Chennai?

Yes, property tax can be paid online. To make the payment via the internet, the following steps need to be followed:

  • Go to the official website of Greater Chennai Corporation and select Online Civic Services tab.

  • Click on Property Tax option and then select Property Tax Online Payment.

  • Enter Zone No., Ward No., Bill No. and Sub No. and press Submit to make the payment.

What are the forms that need to be attached while applying to evaluate property tax?

Prior to paying property tax, it is necessary to compute the property for its value and the liable tax amount. An entity has to submit a copy of the previous paid tax receipt as well as the title deed with approved plan copy while applying to evaluate property tax. Should it be a leased land, a no-objection certificate from the landowner needs to be attached for assessment.

What is the formula for calculating property tax in Chennai?

The formula for computing property tax in Chennai is as follows:

Half Yearly Tax = Base Street Rate (BSR) x Area of the Building x 135.40 (Factor)

(135.40 is based on the depreciation value, maintenance and land value)

Calculation of BSR = Monthly Rental Value / 800

Monthly Rental Value = Annual Rental Value / 12

Annual Rental Value = Value of the Property x 0.35%

Value of the Property = (Area x Guideline Value) + (Cost of Construction) + (22.5% of Cost of Construction) + (20% of Building Cost)

Cost of Construction = Building Area x PWD Rate

Note:

  • For AF Block, Anna Nagar, the Base Street Rate is presently 1. Considering that the GO has stated that property tax can be raised up to 50%, the revised BSR will be 1.5%.

  • The base rate for added area shall be increased by 10%

Are property taxes paid monthly?

Property tax is levied in Chennai on a half-yearly basis.

Who is exempted from payment of property tax?

Property tax does not have to be paid for central government-owned properties and buildings occupied by foreign missions.

What is the consequence of delayed payment of property tax?

The due dates for payment of property tax are generally March 31 and September 31 every year. In the event that payment has been delayed, the Greater Chennai Corporation charges a 1% penalty each month on the sum not paid.

How can property tax be paid in Chennai?

Property tax can be paid to the Greater Chennai Corporation either through the online or offline route. If an individual wants to pay via the offline mode, he or she can write a cheque or demand draft in favour of “The Revenue Officer, Corporation of Chennai”.

This can be delivered through tax collectors, authorized banks (like HDFC, IDBI, Canara Bank, Lakshmi Vilas Bank, Yes bank,
IOB, CUB, KVB, TMB, Kotak Mahindra Bank and IndusInd Bank) or E-seva centres. In the online route, individuals have the option of making tax payment through the website of the Greater Chennai Corporation using debit card, credit card and even via net banking.

What are the concessions available in case of property tax in Chennai?

The concessions that can be availed are as follows:

  • For semi-permanent buildings (like asbestos, tiled, thatched roof etc.), 20% rebate on monthly RLV

  • For owner-occupied residential buildings, 25% rebate on monthly RLV

  • For owner-occupied commercial portion of the building, 10% rebate

  • 1% depreciation is provided on an annual basis for buildings older than 4 years (maximum rebate of 25%)

What is a Property ID?

Property ID is a unique 13-digit number. The first two digits in the Property ID represent the Zone, while the next three numbers represent the Ward. The five digits following it represent the Bill Number and the last three digits represent the Sub Number.

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