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Property tax is one of the major sources of income for the government. Every state government and corporation has the responsibility to decide these rates. In Tamil Nadu, paying your property tax, also known as ‘sotthu vari’, is a simple process as you can pay it online. For convenience, the Chennai Municipal Corporation is divided into 15 zones. The assessment and payment of Chennai Corporation property tax can be done both, online and offline. The due date for Chennai property tax payment is September 31 and March 31 every year and there is a 1% penalty every month, for defaults. In this article, we look at the step-by-step process for payment of property tax in Tamil Nadu.
How to pay property tax online in Chennai
Step 1: Log on to the Chennai Corporation’s online portal for property tax payment. Opt for ‘Online Payment’ under the ‘Online Civic Services’ section.
Step 2: Enter the required details, such as your zone number, ward number, bill number and sub number and submit these details. If this is the first time you are trying to pay the house tax Chennai online, then, you can refer to the previous bills received for all the aforementioned details.
You can also determine the details with the old or new bill number:
Step 3: Submit the details and you will be able to see a page, where the amount that needs to be paid will be mentioned. All you need to do is select the assessment period and make the payment, by choosing your preferred mode of payment. An acknowledgement will be sent to you, upon successful payment.
How to use the Chennai property tax calculator?
You can access the property tax calculator provided on the portal. You will need to enter the type of building for which you have to pay the property tax and other details such as the area, location, street, type of occupancy and the floor details. While you can use this calculator, the website mentions that this calculator is for test purposes only.
Another way to ascertain the exact amount of property tax, is by following this formula:
Assuming the following,
|Plinth Area x Basic Rate per sq ft (say 1,000 sq ft x Re 1)||Monthly rental value = Rs 1,000 per month.|
|Annual rental value = Rs 1,000 x (12 months) – 10% for land. Annual value for building only||Rs 12,000 – Rs 1,200 = Rs 10,800.|
|Less 10% depreciation for the building (repairs / maintenance)||Rs 1,080 (which is 10% of Rs 10,800).|
|Depreciated value of the building||Rs 10,800 – Rs 1,080 = Rs 9,720.|
|Add 10% of the land value||Rs 1,200 (which is 10% of Rs 12,000).|
|Annual value for land and building||Rs 9,720 + Rs 1,200 = Rs 10,920.|
You can see that 10.92 is the common factor that can be used to calculate the annual value of all buildings. Multiply the annual rental value with 10.92 to arrive at the annual value for any building.
Method of fixing annual value for land on lease or rent
The website offers the following explanation:
Monthly rental value (as per agreement between lessor and lessee) x 12 = Annual Value
No depreciation is allowed for vacant land: Rent per 2,400 sq ft (one ground) = Rs 8.00 per month.
Annual value (Rs 8.00 x 12) = Rs 96 per month.
Method of fixing annual value for the super structure only (land being separate): Annual rental value – 10% x (MRV x 12).
The half-yearly property tax for any property is calculated as a percentage of its annual rental value, as per this table:
|Annual Value||Half year tax (as a percentage of annual value)|
|General Tax||Education Tax||Total||Lib. (less)|
|Re 1 to Rs 500||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%|
- 10% library cess is calculated from the general tax of property tax.
- Tiled, thatched and other structures except those with terrace roofing, get a 20% rebate over the monthly rental value.
- Owner-occupied residential structures get a 25% rebate in monthly rental value.
- There is a 10% rebate over monthly rental value, for those commercial structures that are owned by the owner.
- A depreciation of 1% is given for every year for every building that is over four years old. However, there is a maximum limit of 25%.
Are there any extra charges for paying property tax in Chennai online?
If you are using a credit card or net banking, there are nominal charges that could vary from time to time.
What if I face problems while paying my property tax online?
You can contact the revenue department and apprise them. You can also call on 044- 25619258 for payment-related complaints.
Where can I pay the property tax if I am unable to do it online?
You can do so by visiting the walk-in counters of select banks. Chennai property tax collection through offline medium is done by Electronic Clearing Scheme (ECS).
I purchased a new flat and paid the property tax but lost the receipt. How do I find the property tax number?
Please check your property deed and other documents when you purchased the house.