Owners of residential properties in Chennai, are liable to pay property tax to the Greater Chennai Corporation (GCC) every year. The municipality uses the funds collected as property tax to provide important civic facilities and services.
In August 2017, the GCC had come under heavy criticism from the Madras High Court, for its failure to revise the property tax rates. It estimated that the revenue loss incurred by the GCC, due to its failure to revise the rate every four years since 2002, would amount to more than Rs 1,500 crores. If the revision of property tax was carried out according to the rules, the revision would be 25 per cent for residential buildings and 100 per cent for commercial buildings, the court said.
In July 2018, it was announced that the Chennai Corporation had decided to revise property tax rates, after almost two decades. This revision will be put into retrospective effect, from April 2018, meaning that assesses who had already paid their taxes for the April-September period, would have to pay the balance amount. The increase in tax for residential buildings, was capped at 50 per cent.
How to calculate property tax for a residential property in Chennai
The GCC adopts the system of Reasonable Letting Value (RLV), for calculating the annual rental value of a property. This is then used to calculate the half-yearly property tax applicable for properties across the city. The GCC takes the following factors into consideration, while assessing property tax:
- Plinth area
- Basic rate of the street in which the property is located
- Usage of the building (residential or non-residential)
- Nature of occupancy (owner or tenant)
- Age of the building
The fastest and most reliable way to calculate the tax payable on your property, is through the online property tax calculator that is available on the GCC’s website. Manual calculation of the tax amount is also possible, by following the detailed guidelines available on the GCC’s website. If you suspect that the amount of property tax shown to you by the online calculator could be incorrect, you can submit a complaint to the revenue officer.
Paying your property tax
You can pay your property tax online, on the Greater Chennai Corporation’s website: http://www.chennaicorporation.gov.in/online-civic-services/editPropertytaxpayment.do?do=getCombo
You can also pay your property tax manually at the office of the revenue officer, or the office of the assistant revenue or officer of the zonal offices I to XV and at any of the branches of Axis Bank, Canara Bank, City Union Bank, HDFC Bank, ICICI Bank, IDBI Bank and Indian Overseas Bank.
The last dates for payment of your property tax are March 31 and September 31, every year. In case of delayed payment, the GCC charges a one per cent penalty every month, on the unpaid amount.