The Greater Chennai Corporation is in charge of collecting property tax in Chennai. The property owners of this city are liable to pay their annual tax to this civic body. Nonetheless, paying property tax in Chennai has become easier with an online payment facility.
In the first half of the financial year 2021-22, this Corporation collected property tax worth Rs.375.59 crore. The same trend is expected in the second half of this financial year as well if the citizens clear their dues.
Steps to pay property tax in Chennai online
Following are the steps to make an online payment for Chennai Corporation property tax:
- Go to the official website of The Greater Chennai Corporation.
- Click on Online Civic Services on the right.
- Choose Property Tax from the menu on the following page.
- On redirecting the next page, click on Property Tax Online Payment.
- On the following page, enter zone number, bill number, sub number, and ward number in respective places.
- Click on the Submit tab to see the outstanding amount payable.
- Choose the period for tax payment and navigate to Pay Online tab.
- Select the payment amount and choose the payment method and click on Submit.
- On successful payment, you will get SMS notification on your registered mobile number. You should check the Chennai corporation property tax status after payment to avoid any discrepancies later.
After payment, it is also crucial to download the e-receipt against the Chennai property tax payment. This acts as proof of property ownership. It is also one of the vital documents needed to apply for a loan against property.
Besides Chennai property tax online payment process, individuals should also know that delayed or non-payment attracts 2% simple annual interest on the due amount.
On the contrary, individuals can pay property tax in Chennai online at the right time and enjoy incentives or rebates of up to 5%. However, individuals who fail to pay for property tax online can opt for an offline payment option.
Why It is Important?
In either instance, it is necessary for individuals to pay property tax in Chennai on time to obtain an encumbrance certificate from the sub-register of their respective estate. This certificate states that a property does not entail any legal or financial obligation. Hence, this is one of the things individuals need to know before applying for a loan against property.
Selected financial institutions also extend pre-approved offers that simplify and expedite loan processing. These are also available on various financial products like a loan against property, home loans, etc. All you have to do is enter your name and contact number to check your pre-approved offer online.
Property tax in Chennai: An overview
The Greater Chennai Corporation follows the Reasonable Letting Value (RLV) method to derive the Annual Rental Value (ARV). In simple words, while calculating the property tax liability, the civic body considers the following factors:
- Plaint area
- Building’s age
- Type of occupancy (self-occupied or let out)
- Usage of property (residential or commercial, or industrial)
- Rate of street on which the building is situated
However, certain properties are exempted from paying property tax. It also includes concessions.
The details are given below:
- Semi-permanent buildings enjoy a 20% rebate on RLV.
- Self-occupied residential properties are eligible to claim a rebate of 25% on RLV.
- 10% rebate on RLV is applicable on self-occupied commercial part of a property.
- For property more than 4 years old, also enjoy 1% annual depreciation. However, there is a cap of 25% rebate under this scheme.
Moreover, before calculating the tax, individuals should assess the current property value. It also helps them in future while selling it or applying for a loan against property.
Hence, timely payment of property tax in Chennai not only guarantees property ownership but also makes eligible for a substantial loan against property. With this fund, individuals can address various financial needs without any restrictions.
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