Introduction
Property tax is defined as a local tax or direct tax paid by the owner of the property to the municipality. The property tax is registered under Greater Chennai Corporation (GCC) in Chennai. GCC is responsible for property taxes in Chennai, including residential, commercial and industrial. This tax is an essential source of revenue for the local body and helps fund essential civic services such as, public sanitation, waste management, and library facilities.
Property tax is a crucial financial tool that supports the development and upkeep of urban infrastructure and public amenities. So, let’s understand property tax. Continue reading the content for more insights.
Steps to Pay Property Tax Chennai Online
The property tax in Chennai is paid online through the official website of Greater Chennai Corporation. Below is the step-by-step procedure to track the paying property tax online.
Step 1: Visit the official website of Greater Chennai Corporation https://chennaicorporation.gov.in/gcc/
Step 2: Click the link and it will navigate you to the online service bar tab on the top of the website.
Step 3: After clicking the online service tab, a list of bars will appear. Click the property tax bar that is second in the first row.
Step 4: The website will appear by asking you to fill in the information, such as the zone number, bill number, division code, and sub number.
Step 5: Enter all the information and click on submit.
Step 6: Choose the payment mode and proceed with the payment carefully.
Step 7: After the successful payment, download the receipt by visiting https://chennaicorporation.gov.in/gcc/
Steps to Pay Property Tax in Chennai Offline
People who don’t have access to a network connection can pay property tax offline by visiting the tax office. The hard copy documents and important details should be taken to the office while paying the property tax. Below is the step-by-step process to pay the property tax in the Chennai office.
Step 1: Visit an official tax payment center such as the Greater Chennai Corporation office, headquarters, zonal office, district offices, etc., On the other hand, people can go to any of the authorised banks, e-seva centres and tax collectors to pay property taxes.
Step 2: Collect all the necessary documents to submit offline. The documents included are valid identity proof, a bill number, and a tax assessment number.
Step 3: Make the payment and collect your instant receipt from the office for a proven record.
The tax payment can also be made through an app introduced by the Chennai municipal corporation called “Namma Chennai”.
Eligibility Criteria to Pay Chennai Property Tax?
The following are the eligibility criteria for paying property tax in Chennai.
Ownership of Property
The property on which the tax has to be paid must have ownership with proof. It can be commercial residential or industrial property. The owner must be a resident of Chennai and adhere to the Chennai city tax policies.
GCC Registered Property
To pay the property tax in Chennai, the property must be formally registered under the Greater Chennai Corporation. The property owners are instructed to submit valid proof of ownership, such as a sale deed.
Vacant or Reserved Property
The active use of the property demands certain property taxes, and the vacant property hinges on certain taxes. The vacant property, if the building is not occupied for 1 month, owners can register for remission that reduces 50% of taxes. Reserving the building could lead to an increase in taxes.
For example, there is a man named Raj who owns a property plot of 1000 sq. ft. in Besan Nagar, Chennai. There is not construction that is built and left unused. He plans to build a new building on that site in one year. He applies to Greater Corporation Chennai, submits all the credentials, and the officials approve that the property is vacant. Therefore, Raj can now pay a lower property tax rate.
Therefore, the tax is different when the property is occupied or vacant, which comes within a tax eligibility framework.
Category of Property
The eligibility of property taxes differs according to the type of property, such as commercial, industrial, or residential. Even if the land is leased government property, the leaseholders are responsible for paying the property tax.
GCC Assessment
According to the rules of GCC, the property has to be assessed and examined for the property tax. Only then will it be approved.
Therefore, the eligibility requirement for paying property tax is mostly applicable to all types of private property owners. This includes properties such as apartments, houses, offices, leased buildings, schools, hotels, and even vacant land.
Document List for Payment of Property Tax in Chennai
New Property Owner
- Encumbrance Certificate: Before proceeding with the property tax payment, the EC (Encumbrance Certificate) confirms that no legal dues are missing. It is highly recommended in Chennai to take further steps.
- Land Document: Land proof and credentials are the major requirements for initiating the property tax payment in Chennai. The land document is also called a patta document, which is mandatory.
- Sale Deed: The proof of ownership is shown by the registered sale deed. It involves the signatures of both the buyer and seller. In fact, it also holds the complete record of sale and transfer of the ownership details.
- Plan Approval: The credentials of construction and architectural plan approval are mandatory to proceed with the local tax payment. The corporation approves this document, which serves as evidence of authorised construction.
- Government ID Proof: Every legal procedure or official tax payment requires government ID proof, such as a PAN card or Aadhaar card.
Existing Property Owner
The already existing property owner can bring the previous receipt for property tax payment. That holds all the necessary details, like-
- Bill Number,
- Property ID,
- Division Code,
- Assessment Number.
How Property Tax is Calculated in Chennai
In Chennai, the property taxes are calculated under a few factors with the policies of GCC. The basic factors are tax rate, plinth area, rental value, type of construction, category of property, etc., The basic formula to calculate property tax in Chennai is,
Yearly property tax = Plinth area × monthly rent value × 12 month × tax rate
The major components of calculating property tax are the basic rate, plinth area, tax rate, and depreciation. The tax calculation differed according to the type of property, whether it was vacant, reserved, residential, or commercial. One example of calculating property tax is done below.
Example: Owning a residential building with a thousand square feet of plinth area. The monthly rental value is 17 rupees per sq. ft., and the tax rate is 8%. Let’s calculate the annual value and yearly property tax.
Yearly/Annual Value = 1000 × 17 × 12 = ₹2,04,000
Annual/Yearly property tax = 2,04,000 × 8/100 = ₹16,320
Chennai Municipal Corporation Property Tax Rates
According to the Greater Chennai Corporation,
- The local tax basic rates for domestic properties range between ₹0.60 and ₹2.40 per square foot.
- The tax rate for properties other than domestic ones ranges from ₹4 to ₹12 per square foot.
Exemption/Concession from Payment of Property Tax
A few concessions are made for property tax payments in Chennai, in places like temples, charitable institutions, government buildings, public help centres, orphanages, and more. In fact, there are significant reductions in property tax payments for public and government construction projects.
Conclusion
The property tax payment in Chennai is one of the official ones done both online and offline. The eligibility, rates, step-by-step guidance, and concessions are important to understand before proceeding with the property tax payment. To add on, the property tax is an essential source of profit in Chennai under GCC. It is applicable to all types of properties, including residential, commercial, and industrial constructions. Therefore, staying informed and active about property tax payments is necessary. If you are about to pay your taxes in Chennai, note all the instructions before proceeding.
Apoorva H P Achar