Property tax Chennai

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 purposes, the properties here are earmarked into two categories, namely residential and non-residential. Shops, offices, malls, and theatres are categorized 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 in 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.

Timely payment of property tax is essential for staying compliant, but why not take it a step further? Unlock your property's financial potential with a loan against property. This secured loan provides access to substantial funds without giving up ownership, making it ideal for business growth, education, or achieving personal goals. By leveraging your property's value, you can benefit from flexible repayment options and attractive interest rates, turning your asset into a powerful financial resource. Get loan of up to Rs. 10.50 crore against your property within 72 hours* of the approval.

Required documents for paying Chennai property tax

To pay property tax in Chennai, property owners are required to submit certain documents to ensure a smooth and efficient process. Below is a list of the necessary documents:

1. Property tax assessment form: The official form issued by the Chennai Corporation for property tax assessment, containing details about the property such as its address, size, and usage.
2. Sale deed or title deed: This document serves as proof of ownership of the property. It may be needed if the property has recently changed hands or if there has been a transfer of ownership.
3. Previous property tax receipt: A copy of the most recent property tax receipt, which helps verify the payment history and any outstanding dues.
4. Property Identification Number (PID): A unique identification number assigned to the property by the local municipal authority, which is used to track tax records.
5. Building plan approval: A copy of the approved building plan issued by the Chennai Corporation, particularly for newly constructed or altered properties.
6. Occupancy certificate: For newly constructed properties, an occupancy certificate from the local authorities is often required.
7. Address proof: A government-issued address proof of the property owner, such as an Aadhaar card, Voter ID, or Passport, to verify ownership details.
8. Receipt of last paid water tax: If applicable, the receipt for the most recent water tax payment may be requested, as it links the property tax to municipal services.

These documents are essential for both online and offline property tax payments to ensure timely processing.

Having these documents organised simplifies tax payments and can also unlock financial opportunities. For instance, Bajaj Finance provides loan against property, enabling you to access substantial funds for business expansion, education, medical expenses, or debt consolidation. With competitive interest rates, flexible repayment options, this loan helps you leverage your property's value while retaining ownership. Also, enjoy lower EMIs starting from Rs. 750/lakh* and longer repayment tenures.

Eligibility criteria for Chennai property tax

The eligibility criteria for paying property tax in Chennai are based on property ownership and usage. Below are the key requirements:

1. Ownership of property: Any individual or entity owning a property within the Chennai city limits is eligible to pay property tax. This includes residential, commercial, and industrial properties.
2. Registered property: Only properties that are legally registered with the Chennai Corporation can be taxed. Owners must provide proof of ownership, such as the Sale Deed or Title Deed.
3. Occupied or vacant property: Both occupied and vacant properties are subject to property tax. The tax rate may differ based on whether the property is being used or is unoccupied.
4. Type of property: The property tax is levied based on the type of property (residential, commercial, industrial) and its usage. Different rates apply depending on the category.
5. Building and land: Property tax is calculated on both the built-up area and the land area of the property, with separate rates for each.

Eligibility criteria make sure you can pay your Chennai property tax in a way that works best for you. While the payment process may take more time, it is always good to maintain a record of your payments. These records can be vital if you choose to monetise your property through a loan against property in the future. By pledging the value of your own property, you can access large funds—all with flexible repayment options and competitive interest rates. Get a loan of up to Rs. 10.50 crore with the option of interest-only EMIs during the initial tenure

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 in 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 are 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 for Edu

Total calculated by adding general tax and education tax.

Property tax rates in Chennai

Unlock your financial potential with a loan against property

Now that you are familiar with Chennai’s property tax, it is time to consider personalised financial solutions that suit your needs. Whether you are looking to expand your business, fund education, or cover medical emergencies, a Bajaj Finserv Loan Against Property allows you to tap into your property's value. With attractive interest rates, flexible repayment plans, quick loan approval, and easy eligibility criteria, Bajaj Finance makes it simple to access the funds you need. 

Bajaj Finserv Loan Against Property

Armed with insights into Chennai’s property tax, explore financial options with Bajaj Finserv Loan Against Property. Whether it's business expansion, educational funding, or medical expenses, tap into your property's value with Bajaj Finserv Loan Against Property. Enjoy attractive loan against property interest rates, flexible repayment plans, swift approval, and an effortless online application process. Get a loan of up to Rs. 10.50 crore with the option of interest-only EMIs during the initial tenure.

Here are a few benefits of applying for a Bajaj Finserv Loan Against Property:

1. Attractive interest rates: Bajaj Finance provides competitive interest rates for cost-effective borrowing.
2. Quick approval: Experience swift loan approval and disbursal, ensuring timely access to funds.
3. Easy eligibility: The loan against property eligibility criteria are simple, making the loan acquisition process hassle-free.

*Terms and conditions apply.