Overview
Online Payment
Property Tax Calculator
Receipt and Penalty
Formula
Exemptions
FAQs
Recent Updates
Why Vakilsearch

Chennai Property Tax Payment - An overview

Property owners in India have to pay a property tax to the local municipal corporation. Here, ‘property’ refers to all tangible real estate, such as factories, offices, apartments, homes, godowns, shops, etc.

Property tax is a requirement of the TN state government and must be paid to the Greater Chennai Corporation (GCC) every six months. The Chennai corporation was founded on 29 September 1688 and is one of the oldest municipal organisations in the country.

The Mayor, who presides over 200 council members who each represent one of the city's 200 wards, is in charge of the Corporation. The municipal institution uses the money it receives from property taxes to pay for the facilities and services that the community needs.

Chennai Property Tax Online Payment-Procedure

In Chennai, paying property tax is easy and hassle-free. Taxpayers have the option to compute the amount of tax due and make payments through the online portal that has been set up for tax payments. The procedure to pay the property tax online in Chennai is mentioned below:

Step 1: Visit the official website of chennai corporation
Step 2: Click on the ‘Online Payments’ tab and Select the ‘Property Tax Payment’ option
Step 3: Select ‘Property Tax Online Payment’ on the following page
Step 4: Next, enter the division code, bill number, sub number, and zone number. Your bill has the information.
Step 5: Select ‘Submit’.
Step 6: The required payment amount will be shown on the next page. Select the evaluation year.
Step 7: Pick a payment method.

It is crucial to add the right information in the correct fields or else the tax will not be filed aptly. Once the bill has been paid, an acknowledgment will be sent to you.

Chennai Property Tax Calculator

On its website, the Greater Chennai Corporation includes a property tax calculator tool that consumers can use to check the specifics of the calculation of demand. On the Corporation's website is a property tax calculator.

The 13-digit property ID is crucial to analyse the street rate of the property's location.

The first 2 numbers represent the zone
subsequently, the other 3 numbers represent the ward
The next 5 numbers represent the bill number
The final 3 digits represent the sub number

Other information like floor details, and residential and non-residential portions, should be provided as input in the tax calculator. You can calculate the demand after entering all the required information.

Chennai Property Tax Receipt

Follow the below steps to check the Chennai property registration tax receipt.

Visit https://chennaicorporation.gov.in/gcc/online-payment/property-tax/property-tax-receipt/
Add information like the zone number, division code, bill number, and sub number.
Get a receipt for your online property tax payment by clicking ‘Submit’.

Chennai Property Tax Payment Due Date and Penalty

The property tax in Chennai must be paid by 30 September and 31 March of each fiscal year. A 2% penalty is applied if the property tax is not paid on time.

The Formula for Chennai Property Tax online

A new property tax computation methodology has just been developed by the Chennai Corporation. Instead of using the area, as was done previously, the computation is based on the street the property is on. The appraisal also takes into account the property's worth and development costs.

*The following calculation must be used to rationalise property tax: **

Half Yearly Tax = Area of the Building x 135.40 Base Street Rate (BSR) (Factor) (135.40 is based on the land value, maintenance costs, and depreciation value)
BSR is calculated as the monthly rental value divided by 800
Rental Value divided by 12 to get monthly rental value
Annual rental value = Property value multiplied by 0.35 %
Value of the Property = Area x guideline value + construction cost + (22.5% of construction cost)+ (20% of the cost of the building)
Building area times PWD (Public wealth department) rate equals the construction cost.

Exemption/Concession From Payment of Property Tax

Exemptions

Foreign mission-occupied buildings
Properties governed by the government

Concessions

20% off of the monthly RLV for semi-permanent structures
Buildings older than four years are eligible for an annual 10% rebate, depreciation for their owner-occupied commercial portion (up to a maximum 25% rebate)
In the case of owner-occupied residential buildings, 25% of monthly RLV is provided.

Recent Updates

The Corporation has extended the deadline for paying property taxes without charging penalties for the second half of the fiscal year 2022–23 from October 15 to November 15.

The civic organisation has said that the 2% penalty for the assessment period of October 2022 to March 2023 will only be collected by the revenue department after November 15. Only ₹5.17 lakh of the ₹13 lakh assessees in the city's 15 zones have paid the tax. For assessees who made payments before the deadline of October 15, the civic body offered an incentive of ₹4.67 crore rupees.

If the tax is paid within the first 15 days of the half-year period an incentive of up to 5% is provided for the tax assessment. The highest amount of incentive restricted to ₹5000

Assesses are required to pay the tax due for these six months to tax collectors, who will then issue receipts through handheld printers after accepting a demand draft or cheque. The property tax receipts' QR codes can be used to pay the tax as well.

Why Vakilsearch?

Vakilsearch has a team of tax experts who can help in calculating your property tax and filing it without much hassle. Our In-house tax experts can provide clear advice and help you with documentation to avoid any errors. Vakilsearch provides the best tax filing solutions. Get in touch with us right away to file your property tax without delay.

Chennai Property Tax