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Calculation of Property Tax in Chennai and Important Facts

Property tax in Chennai is levied on buildings and vacant land with some specific exemptions. The Greater Chennai Corporation (GCC), the oldest civic body in India, is responsible for managing, regulating, and collecting property tax in the city.

Taxpayers have to pay their due taxes on a half-yearly basis as GCC divides the annual tax into half-year cycles for a financial year. The due dates for payment of Chennai property tax are 31 September and 31 March of every year. If there are any defaults, a penalty of 1% is charged every month. Therefore, it would be wise for individuals to get a detailed idea about the calculation of property tax in Chennai.

Calculation of property tax in Chennai

You can use an online calculator for property tax in Chennai or do it manually via the following steps:

  1. Let’s assume that the plinth area is 100sq ft and the basic rate per sq ft is Rs.1. First, we calculate the Monthly RLV by multiplying the plinth area with basic rate. (Monthly RLV = 100 sq ft x Rs. 1/sq ft = Rs. 100)
  2. To get the Annual Rental Value for the land, we multiply the monthly RLV by 12. (ARV = 12 x Monthly RLV = Rs.1200)
  3. Next, deduct 10% of this ARV to get the ARV for building only.(Therefore, ARV for building = Rs.1200 – Rs.120 = Rs.1080)
  4. To get the depreciated value of the building, we will deduct 10% of the previous ARV. (Depreciated building value = Rs.1080 – Rs.108 = Rs.972)
  5. Finally, we will add the value of the land by adding 10% of the above number to get the ARV of land and buildings (ARV for land and building = Rs.972 + Rs.120 = Rs.1092)

Alternatively, one can use the common factor 10.92 to calculate the annual value of all buildings. To get the ARV for a building, multiply the monthly RLV by 10.92. You can also use Chennai Corporation’s property tax calculator to pay property tax online conveniently.

A brief overview of property tax in Chennai

With an affordable tax rate and a fully developed city, many people consider Chennai ideal for investment in real estate. You can also use your house to apply for a loan against property to get funds in times of emergencies. Given below is a brief overview of its property taxation system.

Section 100 of Chennai City Municipal Corporation Act 1919 has set up a reasonable letting value (RLV) to calculate the annual renting value (ARV). This, in turn, is used to calculate Chennai Corporation’s property tax on a half-yearly basis.

The monthly RLV is computed with the basic rate per square foot for both residential and non-residential properties. However, it can vary depending on factors like location, building type, age and occupation.

The basic rate is between Rs.0.60 and Rs.2.40 per sq ft for residential properties and Rs.4 and Rs.12 per sq ft for non-residential properties.

Residents of Chennai can get tax benefits on the LAP loan, they choose to mortgage their properties for funds. These customized loans can be used for any purpose, including funding emergency medical expenses, children’s education, or wedding.

How to pay Chennai property tax online?

  • Go to Chennai Corporation’s official website and sign up by creating a user ID and furnishing various details.
  • Send an application to Chennai Corporation for property tax status.
  • After knowing the dues, click on ‘Online Civic Services’ tab on the main page.
  • Select ‘Property Tax’ and then ‘Property Tax Online Payment’.
  • Enter the property location details and click on ‘Submit’.
  • Choose the ‘pay online option’ and pay using credit cards, debit cards, or net banking.

Citizens of Chennai can get affordable financing using their real estate as collateral. They can use the funds of LAP for emergencies like medical treatment or get out of a debt trap.

Some financial institutions make the loan approval process quicker with pre-approved offers. These are provided for various financial products like home loans and loans against property. You can check your pre-approved offer here by entering your name and contact information.

Greater Chennai Corporation has made it easy to pay property tax in Chennai by providing both online and offline payment options. One can use GCC’s portal to calculate their taxes, assess their tax liability and make payments accordingly.

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