An important task to be addressed once you become the proud owner of your dream home is to do the needful for property tax assessment. Local civic bodies like the municipality, corporation, provide important services for the residents of a locality, like ensuring cleanliness in the area, water supply, drainage, maintenance of local roads, and other civic facilities, and funding for these activities is achieved through the property tax paid by the residents of the locality.
So it is essential that you pay your property tax on time, it is collected on a half-yearly basis. Here, we would try to understand the basics of the property tax and also answer some of the commonly asked questions in this regard.
How is property tax calculated in Chennai
Sothu vari or property tax is calculated by the Greater Chennai Corporation (GCC) based on property’s annual value, which takes into consideration parameters like basic rate (the property’s monthly rental rate per square foot, usually depends on the locality), depreciation, nature of structure, occupancy, and the tax slab.
Step 1 – BR (Basic rate) * Plinth area of the property = Monthly Rental Value (MRV)
Step 2 – Annual Rental Value (ARV) = MRV * 12
Step 3 – ARV for only the building = Total ARV – 10% ARV for land
Step 4 – Various discounts are applicable based on the nature of occupancy (owner occupied, rented), usage (commercial/residential), age of property and after deducting all these the depreciated value of the building is arrived at.
DBV (Depreciated Building Value) = ARV for building – total discount
Step 5 : Total ARV (Building + Land) = DBV + Land value (10% total ARV)
This may seem a little complicated and confusing, to make it easy, just multiply the monthly rental value by the common factor (10.92), which has been derived after a common computation, and you will arrive at the ARV of your property.
ARV for building = Monthly rental value x 10.92
The half-yearly property tax is calculated as a specific percentage of this annual value. There are different half-yearly property tax percentages for different slabs of ARV.
Is there an easy way to find out the property tax applicable for the property?
Property tax calculator, a tool present on the website of Chennai Municipal Corporation would be of great help in this regard (http://coc-staging.egovernments.org:9980/ptis/citizen/citizenCalc.action). It will help calculate the property tax value once you provide the necessary information of your property such as the building type, location, street, apartment floor, type of occupancy, etc.
How to initiate assessment for property tax?
You can download the self-declaration form for property tax from the Corporation’s website (www.chennaicorporation.gov.in), you can also obtain the application form from the relevant zonal office.
You can choose any one of the methods , online or offline, for the submission of relevant document for assessment of property tax
Visit the online citizen portal (www.chennaicorporation.gov.in), and provide your details like user name, mobile number and email address, you will obtain user credentials. After obtaining it you can furnish the required details and relevant documents online. This would include basic details like the division, name of the assessee and the property information such as the location, and address details.
For offline requisition
You can submit a request for property assessment at any of the TACTV counters in GCC premises or at the zonal office. Copies of all the relevant property documents should also be furnished along with it. The zonal office will provide a signed receipt/ acknowledgement, and the application details will be entered in the system. You will also receive an acknowledgement through SMS for receipt of the request
What is the procedure for assessment ?
An Assessor will scrutinize the request, will inspect the property, verify the details provided, measure the property and submit the details to the Assistant Revenue Officer and it will be sent to the property tax committee. The committee checks the details and verifies the correctness of the assessment after which it approves the assessment. Once this is done the new assessment order (Notice 6) is issued to the assessee. Assessee also receives the information through SMS.
How to pay property tax online?
You can pay property tax online through the provision in the Chennai corporation website (https://chennaicorporation.gov.in/gcc/online-payment/). The webpage is self-explanatory and on entering the relevant details you can make the online payment.
How to pay offline?
You can make payment through cheque or demand draft addressed to ‘The Revenue Officer, Corporation of Chennai’. This can be submitted to authorized banks, tax collectors, e-seva centers and Tamil Nadu Arasu Cable Television Corporation (TACTC) in Taluk Offices.
How to check the status of property tax?
To check the Chennai corporation property tax status, click on (https://chennaicorporation.gov.in/gcc/online-services/online-payment/property-tax/property-tax-payment-status/). Enter the relevant details like the zone no, division code, bill no and sub no and press on submit to know the status.
What is the last date for payment of property tax every year?
The due date for property tax payment is September 31 and March 31 every year. Assesses are imposed a 1% penalty every month for late payments.
The above mentioned details address the major questions that arise in the minds of the home owners. The easily navigable website of the GCC also offers comprehensive information and one can also get help online and through whatsapp chat through the portal. As a new home owner bask in the joy of home ownership and remember to pay your property tax on time to enjoy a hassle free experience.