Property tax is levied on buildings and vacant land unless specifically exempted. The municipality entrusted with regulating, managing and collecting property tax in Chennai is ‘The Greater Chennai Corporation’.
As per the regulation, Greater Chennai Corporation adopts reasonable letting value (RLV) to arrive at annual rental value (ARV), which is used to compute half-yearly tax for any property in Chennai City corporation limits. The monthly RLV is computed with reference to the basic rate per sq. feet fixed by the corporation for residential and non-residential properties depending upon the location of the property.
Chennai Municipal Corporation Property Tax Rates
Type of Property | Rates (per square feet) |
Residential | Rs.0.60 – Rs.2.40 |
Non-Residential | Rs.4 – Rs.12 |
How to Pay Property Tax Chennai Online
Step 1: Visit the official page at https://chennaicorporation.gov.in/gcc/online-payment/property-tax/property-tax-online-payment/
Step 2: Next, enter the Zone Number, Bill Number, Division Code, and Sub Number
Step 3: Click on ‘Pay Tax‘.
Step 4: The amount that must be paid will be displayed. Choose the ‘Assessment Year‘
Step 5: Choose the ‘Mode of Payment‘ and ‘Pay’.
You will receive an acknowledgment once the bill has been paid.
Online Property Tax Receipt- Chennai Corporation
- Visti https://chennaicorporation.gov.in/gcc/online-payment/property-tax/property-tax-receipt/
- Enter details such as Zone no, division code, Bill no and Sub no.
- Click “SUBMIT” to get property tax online payment receipt.
Tax Calculation
| Plinth Area x Basic Rate per Sq. Ft. (assuming that Plinth Area=100 Sq. Ft. and Basic Rate per Sq. Ft.= INR 1.00) | Monthly Rental Value = INR 100 per month |
| Annual Rental Value = INR 100 x (12 months) – 10% for Land. Annual value just for the building. | INR 1,200 – INR 120 = INR 1,080 |
| 10% depreciation for the building including repairs and maintenance | Rs.108 (10% of INR 1,080) |
| Depreciated Value of the building | INR 1,080 – INR 108 = INR 972 |
| 10% for the value of the land | INR 120 (10% of INR 1,200) |
| Annual Value for the land and building | INR 972 + INR 120 = INR 1,092 |
In simpler words, 10.92 is a common factor when Annual Value for a building is calculated. To find the Annual Value of a building, simply multiply the 10.92 with the Monthly Rental Value of the building. The following table indicates the half-yearly property tax for any property.
| Annual Value | Half year tax (as a percentage of Annual Value) | |||
|---|---|---|---|---|
| General Tax | Education Tax | Total | Library Cess | |
| INR 1.00 to INR 500 | 3.75% | 2.50% | 6.25% | 0.37% |
| INR 501 to INR 1,000 | 6.75% | 2.50% | 9.25% | 0.67% |
| INR 1,001 to INR 5,000 | 7.75% | 2.50% | 10.25% | 0.77% |
| INR 5,001 and above | 9.00% | 2.50% | 11.50% | 0.90% |
NOTE:
- 20% rebate over the Monthly Rental Value is offered for semi-permanent buildings that are tiled, thatched, and so on. The only exception is for buildings with terrace roofing.
- 10% Library Cess is calculated as 10% of the General Tax of the Property Tax.
- 25% rebate over the Monthly Rental Value is offered for owner-occupied residential buildings.
- 1% depreciation is also offered annually for buildings more than 4 years old. The maximum rebate offered under this situation is 25%.
- 10% rebate over the Monthly Rental Value is offered for owner-occupied commercial properties.
FAQs
Exemptions and Concessions?
The Corporation of Greater Chennai is the municipality body that deals with the regulation and the collection of property tax in the city of Chennai. Property Tax is laid on every building, regardless of being vacant lands and buildings, unless specifically exempted from paying taxes. Most properties owned by the Central Government and premises occupied by any foreign mission, such as an embassy, are exempted from paying any taxes. However, as of 2018, the exemptions that previously existed for private education institutions were taken down. In terms of concessions, the following are permitted with respect to property tax in Chennai.
- 20% rebate on the monthly Reasonable Letting Value for semi-permanent buildings.
- 25% rebate on the monthly Reasonable Letting Value for owner-occupied residential buildings.
- 10% rebate on the monthly Reasonable Letting Value for owner-occupied commercial portions of the building.
- 1% depreciation is also offered annually for buildings more than 4 years old. The maximum rebate offered under this situation is 25%
Due Dates and Penalty?
The due date for the payment of property taxes in the city of Chennai is the 31st of March and the 31st of September, every year. The penalty for delayed payment of property taxes is 1% of the total tax amount to be paid. This would increase by 1% for every month past the due date.