Everything about property tax in Chennai – 2020

In Chennai, you can pay your property tax or ‘sotthu vari’ online and offline. The due date for payment of the tax is September 31 and March 31 every year. Read on, to know the process

How to pay property tax online in Chennai

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.

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 that is Rs 10,800 – Rs 1,080 = Rs 9,720.

Add 10% of the land value that is 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:

Also note:

  • 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%.

 

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