Chennai Property Tax

As the owner of a property in India, you need to pay property tax online once a year. However, the property tax amount, rates and other taxation details depend on the state you own the property in. For instance, with a house or plot in Chennai, you are eligible to pay property tax Chennai determined by the local civic and municipal authorities. Property tax is a mandatory financial obligation for all property owners, failing which you will have to pay a 2% penalty on the assessed value.

Chennai Corporation Property Tax

The Chennai Municipal Corporation has 15 zonal divisions and for tax purpose, the properties here are earmarked into two categories, namely residential and non-residential. Shops, offices, malls and theatres are categorised as non-residential properties, while the rest are all clubbed under the residential category. As per the CCMC Act, all properties in Chennai are assessed together with the plot and the nearby premises they occupy. Added to this, the assessor also estimates the expected gross annual rent on the property, and it is added to the annual value for property tax Chennai.

This apart, the government specifies that any building that has been kept vacant for 30 consecutive days or more will have a chennai property tax online exemption. Irrespective of whether the property is rented or occupied by the owner and has been vacant, you can claim remittance only up to an amount not exceeding one-half of your total tax dues.

Property tax Chennai Calculations

The basic rate on your residential property in Chennai ranges between Rs. 0.60 per sq. ft. and Rs. 2.40 per sq. ft. On the other hand, for non-residential properties the rate varies from Rs. 4 to Rs. 12 per sq. ft. Keeping these rates in mind, you can manually calculate your property tax Chennai with ease. However, in case you want to do it online, you can simply head to the official Chennai Municipal Corporation online portal to use the online services and calculate your tax dues in a jiffy.

If opting for manual calculation, the basic formulae used for chennai corporation property tax.calculation is:

Plinth Area x Basic Rate per sq. ft. + Annual rental value

From the total, the depreciation value and exemptions are subtracted to arrive at your final dues.

For instance,

Plinth Area x Basic Rate per sq. ft. and say you have 1,000 sq. ft. at Re.1 per sq. ft.

Monthly rental value = Rs.1,000 per month, the annual rental value will be Rs.1,000 X 12 months – 10% for land. So, annual value for building is Rs.10,800

In case you have opted for repairs or maintenance, you can calculate another 10% depreciation for the building. On this, the annual value for land needs to be added. Assuming there are deductions for both cases, the annual value for building and land will be Rs.9,720 + Rs.1,200 = Rs.10,920.

Here, 10.92 comes out as the common for all buildings. So, all you have to do is multiply the annual rental value for any building with 10.92 to arrive at the annual value for property tax Chennai. This is the yearly chennai property tax online.

In order to calculate the half-yearly property tax in Chennai you can follow the figures listed in the table below to know the rental value percentage.

Annual Value Half year tax (as a percentage of A.V.)
  General Tax Education Tax Total Lib. (less)
Re.1.00 to Rs.500.00 3.75% 2.50% 6.25% 0.37%
Rs.501 to Rs.1,000 6.75% 2.50% 9.25% 0.67%
Rs.1,001 to Rs.5,000 7.75% 2.50% 10.25% 0.77%
Rs.5,001 and above 9.00% 2.50% 11.50% 0.90%

Steps to Pay Chennai property tax online

  • To start with, head to the official Chennai Municipal Corporation online portal and on the homepage look for the ‘Online Civic Services’ tab.
  • Click the ‘Online Civic Services’ tab to find a list of options. From here, select the ‘Property tax’ option.
  • Listed on the next page, you will see the Chennai corporation property tax status option, property tax rules, register phone number, and many other Chennai corporation property tax-related options. From here choose ‘Property Tax Online Payment’ to complete your Chennai property tax payment on the next page.
  • At this stage, you will have to fill in a form with the right details for your zone number, division code, bill number and sub number. To be sure of the details, keep a property tax bill handy and check and enter the details in the form basis the bill. This will ensure that you enter error-free information in the form, leaving no room for discrepancies.
  • Once you complete the form and hit ‘Submit’, you will be able to see the outstanding Chennai property tax amount and then you can click ‘Pay Online’ to make the payment.
  • You can use your debit/credit card or opt for UPI payments to complete your chennai property tax payment. Once the transaction is successful you will get an acknowledgement on the screen and a receipt that you can download and keep handy as proof of payment.

The Chennai Municipal Corporation makes it very easy for property owners in Chennai to pay property tax online. Make your chennai property tax payment by following a few easy steps.

Keep these tax norms and easy payment of Chennai corporation property tax in mind as a property owner in Chennai.

Keeping the important factors about Chennai corporation property tax in mind, you can now go ahead and invest in a property in Chennai to enjoy maximum tax benefits. For hassle-free loan processing and affordable rates of interest, choose Bajaj Finserv. Here you can get a high-value loan against property that comes with simple eligibility terms and conditions.

Chennai Property Tax Due Date & Rebate

You can get considerable rebates on your Chennai corporation property tax, which are as follows.

  1. 10% library cess on your General Tax.
  2. 20% rebate on the Monthly Rental Value for semi-permanent buildings.
  3. 25% rebate on the Monthly Rental Value for owner-occupied residential buildings.
  4. 10% rebate over the Monthly Rental Value for an owner-occupied commercial portion
  5. 1% depreciation is provided for each year for buildings that are over 4 years old (subject to a maximum rebate of 25%).

Keeping these concessions and the total value of property in mind, you can pay your Chennai corporation property tax twice a year by September 31st or by March 31st. The best part is you can pay your Chennai property tax online any time you want. This makes it easy for you to adhere to deadlines in order to avoid unnecessary fines.

Property Tax Chennai- FAQs

How to calculate property tax in Chennai?

You can calculate your property tax in Chennai either manually or online at the official Greater Chennai Corporation. For manual calculation, use the formula:

Plinth Area x Basic Rate per sq. ft. + Annual rental value

In Chennai, the basic rate on your residential property ranges between Rs. 0.60 per sq. ft. and Rs. 2.40 per sq. ft. For non-residential properties, the rate varies from Rs. 4 to Rs. 12 per sq. ft. When doing the manual calculation of property tax in Chennai, keep the formula in mind and subtract the depreciation value and exemptions from your total to arrive at your final dues. Count in repairs or maintenance carried out too.

If calculating this online, select ‘Property Tax Calculator’ under ‘Property Tax Payment’. Choose the zone, ward, and street name and enter details regarding the floor details, number of owners and tenants. Once done, click on ‘Calculate Demand’ to see the relevant amount to pay as property tax in Chennai.