Jun 12, 2023Investments

Step-by-Step Guide to Paying Property Tax in Chennai | Godrej Properties

by Godrej Properties Limited

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Property tax is a major source of revenue utilized in a city's upkeep. In 2022-23, the Greater Chennai Corporation (GCC) doubled its property tax collection to Rs 1,408.9 Crore thanks to its diligent property taxpayers. As a property owner in Chennai, you are surely interested in understanding how to fulfil this responsibility. Below is an overview of how to pay property tax online in Chennai.

Property Tax in Chennai

What is Property Tax?

Property tax is an important income utilised to maintain and improve a city’s infrastructure, and public and civic services. Chennai boasts numerous beautiful monuments, parks, and museums maintained with the revenue earned from such taxes. Locally, property tax is also called ‘Sothu Vari’ and is paid twice a year.

Property Tax Rates in Chennai

The GCC levies different property tax rates based on the property’s use.

  • Residential - Rs. 0.60-Rs. 2.40 per sq. ft.
  • Non-Residential - Rs. 4-Rs. 12 per sq. ft.

How to Find Property Tax Bill Number in Chennai?

Use GCC’s online portal to find out your property tax bill number. Under ‘Property Tax’, click on ‘New Bill No. Search’. Enter relevant details such as Zone No., Division Code, Bill No., and Sub No. to obtain your information.

Formula for Chennai Property Tax Computation

Chennai Corporation property tax computation involves a half-yearly tax based on a percentage of the annual value and a 10% library cess. Here's a breakdown of the half-yearly property tax percentages:

  • Annual value between Re 1 and Rs 500: 3.75%
  • Annual value between Rs 501 and Rs 1000: 6.75%
  • Annual value between Rs 1001 and Rs 5000: 7.75%
  • Annual value above Rs 5000: 9%

To calculate the annual value of land and buildings, the following formula is used:

  • Plinth area * Basic rate per Sq ft = Monthly RLV (Rental Lease Value) - Assuming 1000 as the plinth area and 1 Rs as the basic rate, the monthly RLV is Rs 1000.
  • Monthly RLV * 12 = ARV (Assessed Rental Value) - Rs 1000 * 12 = Rs 1,2000.
  • Deduct 10% from ARV attributable to the land value, resulting in Rs 1,0800.
  • Calculate 90% of ARV less 10% depreciation on the building, which is Rs 9720.
  • Add the depreciated value of the building to the 10% value attributable to the land, resulting in the annual value of land and building, which is Rs 1,0920.

Steps for Payment of Chennai Property Tax (Online and Offline)

Property tax payments methods  in Chennai can be made conveniently online or offline.

Online Payment

Offline Payment

Offline payments can be made via cheque or demand draft in favour of 'The Revenue Officer, Corporation of Chennai.' You can use the following methods:

  • Tax collectors
  • Authorised banks (cash payments accepted), including Indian Overseas Bank, City Union Bank, Karur Vysya Bank, HDFC, IDBI, Canara Bank, Tamilnadu Mercantile Bank, Kotak Mahindra Bank, Lakshmi Vilas Bank, Yes Bank, and IndusInd Bank
  • E-Seva centres (Common Service Centers) established by the Tamil Nadu Government
  • Tamil Nadu Arasu Cable Television Corporation (TACTC), located in all Taluk Offices of Chennai District
  • Finally, paying property tax is your civic duty as a property owner. Chennai’s property tax payment online portal empowers its citizens to pay property tax online.

Exemption/Concession from Payment of Property Tax

Exemption

Properties owned by the Central Government and buildings occupied by foreign missions are exempt. However, it's important to note that recent changes in March 2018 abolished the exemption previously granted to private educational institutions.

Concessions

  • Semi-permanent buildings are eligible for a 20% rebate on monthly RLV.
  • Owner-occupied residential buildings enjoy a 25% rebate on monthly RLV, while the owner-occupied commercial portion of a building receives a 10% rebate.
  • Buildings over 4 years old are entitled to a 1% depreciation yearly, with a maximum rebate limit of 25%.

 

Frequently Asked Questions

1. Is there a penalty for late property tax payments online in Chennai?

Ans: Chennai charges a 2% penalty for property tax paid after the due date, which is September 31 and March 31 of each financial year.

2. How can I check my property tax status in Chennai?

Ans: Visit the GCC portal and click on ‘Property Tax Status/Paytax’. Enter the necessary details to obtain Chennai property tax status.

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