What is Property Tax?
When you purchase a piece of land, an apartment, a shop, or any residential or commercial property the owner of that property is required to pay a certain amount of tax for the civic body. This is common within every city in India. The Greater Chennai Corporation (GCC) is responsible for collecting property tax from the public. This amount can be paid on a yearly or a half years basis as the civic body needs to compute the amount that needs to be levied for that financial year.
The Chennai Municipal Corporation has 15 zones under its jurisdiction and the properties in these zones are distinguished as residential and non-residential properties. Offices, shops, and malls are considered non-residential properties whereas the houses that are occupied, rented, or owned are considered residential properties.
The Chennai City Municipal Corporation Act of 1919, states that all proprieties within Chennai are assessed with the plot area and the surrounding area that is being occupied by the property. The annual rent valuation of the property is also added to the property tax.
Keep reading further to under the breakdown of property tax Chennai and how it is calculated and how one can pay their property tax.
How to Calculate Property Tax?
The Great Chennai Corporation assesses property tax based on total floor area, external and internal walls, base street rate per sq. ft. The basic rate for residential property ranges from Rs. 0.60 per sq. ft. and Rs. 2.40 per sq. ft and whereas the basic rate for non-residential property ranges between Rs. 4 and Rs. 12 per. Sq. ft. You are not required to keep a track of these rates as you can calculate the rates for your property tax online on the portal.
In case you want to manually calculate the rates here is the formula to do so:
Built-Up area x Basic Rate per sq. ft. + Yearly rental value
In case there is depreciation on the asset the same needs to be subtracted from the total derived from the formula above.
Using this formula, you will be able to derive your sum due amount.
How to Make Payments?
Payment for your property tax is extremely convenient and easy with access to offline and online portals.
Here is a step-by-step guide for an online payment method for property tax in Chennai:
- Step 1: You can visit the Greater Chennai Corporation’s website to make a payment
- Step 2: Click on ‘Online Tax Payment’ under ‘Online Civic Services’
- Step 3: By clicking on ‘Online Tax Payment,’ you’ll be redirected to an information page
- Step 4: Upon loading the next page, you will be asked to fill in your details such as Zone number, Ward number, Bill Number, Sub Number; once filled, click on ‘Next’
- Step 5: The next page will reflect your total payment dues for that assessment duration
- Step 6: Select the assessment duration and click on ‘Pay Online’
- Step 7: Select the desired method of payment such as debit card, credit card, or even UPI and make the payment
- Step 8: Download the receipt to keep as an acknowledgment
Upon doing so you will receive a confirmation message regarding the payment that you have made against your property tax bill.
In case you do not have the access to make the property tax payment online then you can even make the payment offline by drafting a Cheque or a demand draft and submitting it to your local revenue office.
When is the Last Day to Pay Your Property Tax?
The Greater Chennai Corporation (GCC) collects property tax in two half-yearly installments. The first installments are due on 31st September and the second installments on 31st March.
Failing to pay your property tax on time may incur hefty fines wherein you are required to pay 1% per delayed month on your total outstanding figure.
What Tax Benefits Can You Avail?
Owning a property is beneficial as you will get sizable tax rebates on your property tax.
- 1% depreciation on a building that is over 4 years old for each year (Maximum of 25%)
- 20% rebate on your monthly rental in case of a semi-permanent building
- 25% rebate on your monthly rental in case of owner-occupied residential building
- 10% rebate on your monthly rental in case of the owner-occupied commercial part of the building