When it comes to making an investment, there is always a Stocks vs real estate debate but the most common practice is to invest in the latter. It is a stable and secure option to fall back on when the need for monetary help arises. So, if you are buying a residential or commercial property, you must bear in mind the number of taxes that you will have to start paying to the central government. Property tax is one such tax that you will be paying every year. If you own a property in Chennai, you will be liable to pay property tax to the Greater Chennai Corporation (GCC). Read on to know more.
How is property tax calculated?
The GCC adopts the method of Reasonable Letting Value (RLV) to calculate property tax in Chennai. This tax is calculated based on some fixed factors and then it is divided accordingly to come up with a half-yearly sum. The property tax varies across different locations in the city. Additionally, the quality of the building and nature of its use also plays a huge role in the tax value. Here are the factors that affect your property tax.
- The basic rate of the locality – This is the pre-decided rate of the street the building is on.
- The total plinth area of the building – This is inclusive of the walls, corridors, the total square feet area, and common areas like stairs, lobby, portico, a terrace that is used by all the occupants.
- The type of usage – Whether the property is used for residential or commercial purposes.
- The age of the building
- The type of occupancy – Whether you own the property or are a tenant.
You can also calculate your property tax online on GCC’s Property tax calculator.
Where to pay the property tax
You can either pay this tax online or manually to the respective zonal officer in your area. GCC accepts online payment by methods of NEFT or RTGS. It can be paid online directly on the GCC online portal. Other methods to pay the property tax in Chennai are by visiting the revenue officer’s office or by dropping a cheque in any of India’s leading banks. Some of the banks where you can pay the property tax are HDFC Bank, Axis Bank, ICICI Bank and Canara Bank.
How to pay the property tax
Just like booking movie tickets, buying products or paying your phone bills, even paying your property tax online is safe and hassle-free now. Apart from making the payment on the portal, you can also calculate the property tax based on the guidelines given by GCC. If there are discrepancies with the tax amount that you have been asked to pay, you can get in touch with the revenue officer and register a complaint by reaching him/her at 044-25383614/25384510, with the extension 381.
When to pay property tax?
You are expected to pay property tax to the GCC on a half-yearly basis. This recurring tax must be paid by the final dates that fall on March 31st and September 30th every year. If you have missed paying your tax by the above-mentioned dates, then a late payment fee of 1 per cent of the unpaid amount will be added every month post the final due date.
Why pay property tax?
Every tax we pay has a reason behind it. The municipality uses the funds that are collected as property tax to provide necessary civic facilities and improve the city’s infrastructure. Furthermore, Chennai’s tax calculation system is one of the most user-friendly ones compared to the other metros.
Now, with the implementation of the real estate regulatory act and the GST tax reform, there is a positive impact on real estate. This is all the more a reason not to delay investing in real estate in Chennai. When it comes to residential properties, Lancor has a plethora of projects that will give you the experience of living in your dream home.