PROPERTY TAX IN CHENNAI

PROPERTY TAX IN CHENNAI

A property tax or millage rate is an ad valorem tax on the value of a property, usually levied on real estate. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or geographical region or a municipality. Multiple jurisdictions may tax the same property. This tax can be contrasted to a rent tax which is based on rental income or imputed rent, and a land value tax, which is a levy on the value of land, excluding the value of buildings and other improvements.

Paying property tax in Chennai is a simple and hassle-free process. The online portal that has been set up for tax payments gives taxpayers the facility to calculate the tax to be paid and enables them to make the payments online.

Half yearly property tax is a percentage of Annual value and 10% library on property tax.

• Annual value of land and building Chennai property tax computation takes into consideration following factors in arriving at Annual value

• Plinth area * Basic rate per Sq ft = Monthly RLV – Assuming 100 as plinth area and 1 Re as basic rate monthly RLV is Rs 100

• Monthly RLV * 12 = ARV – Rs 100 *12 = Rs 1,200

• Deduct 10% from ARV attributable to value of land – Rs 1,200 – 120 = Rs 1080

• 90% of ARV less 10% depreciation on building – Rs 1080 – 108 = Rs 972

• Depreciated value of building plus 10% value that was attributable to value of land =Annual value of land and building – Rs 972 + Rs 120 = Rs 1092 To put it otherwise, 10.92 is the common factor for calculating annual value for all buildings. To arrive at Annual value of any building, multiply MRV with 10.92.

• Formula for arriving at ARV of superstructure only 10% (MRV12)

How property tax is calculated in Chennai? The half-yearly tax is calculated as 6.62% of the annual value of Rs.1.00 to Rs.500, 9.92% for properties with annual value of Rs.501 to Rs.1000, 11.02% for properties with annual value of Rs.1001 to 5000 and 12.40% for properties with annual value of Rs.5001 and above.

Assessment of Property Tax

Online assessment

• Citizens may submit an application for assessment of property tax through online citizen portal available by creating user id and password and furnishing the details such as division, name of assessee, location of property with complete address and contact number

Offline assessment

• Assessee shall submit filled application form, copy of registered documents in his/her favour, and last tax paid receipt if any at any of TACTV counters located in Greater Chennai Corporation premises or concerned zonal offices/headquarters.

• An acknowledgement will be sent to the applicant through SMS for receipt of the request.

• Application will be scrutinized by the Assessor and he/she will measure the newly constructed building and proposal will be submitted to the concerned officer.

• The proposal will be submitted to the Assessment Committee post field verification by the approval officer

• Assessment committee will randomly select the proposals for scrutiny in order to verify the correctness of the assessments and approve the proposals post such scrutiny

• The committee approves and subsequently the assessee receives the new assessment order (Notice 6). The assessees are also informed through SMS.