Chennai’s residential market already looks promising with a thriving economy, a large influx of corporates, and increasing job opportunities. The city has residential properties like Flats in Madhananthapuram that cater to all financial statuses making it an intelligent choice for homebuyers. Here is a checklist to get you right about the property taxes if you’re buying a property from the top builders in Chennai.
What exactly is a property tax?
Property tax is a local tax imposed on the owner of a real estate property by local government bodies such as the Panchayat or the Municipal Corporation on an annual or semi-annual basis. This is known as the house tax and is assessed by the local governing body based on the property’s size, the building’s area, construction, location, and so on.
Flats in Madhananthapuram also include taxes on resources such as lighting, water, and drainage.
How is property tax calculated?
The Greater Corporation of Chennai is in charge of collecting property taxes in the city. It uses the concept of Reasonable Letting Value (RLV) to calculate property taxes, and the annual rent is calculated using the basic rate per square foot. The corporation determines this basic rate.
Monthly RLV = Plinth area multiplied by Basic Rate per square foot
Annual Value = Monthly Rental Value x 10.92, where 10.92 is the corporation’s fixed standard value used to calculate the annual value of the building.
The Greater Chennai Corporation’s website includes an online property tax calculator to help you calculate your property taxes. Your property tax like for the Flats in Madhananthapuram can be easily computed by filling in details such as the type of ownership, the name of the street, the ward number, and so on.
Your Property Tax Assessment
Property taxes can be calculated both offline and online. To assess your tax offline, follow these steps:
Submit the application form, your registered documents, and, if applicable, the most recent property tax receipt to a Tamilnadu Arasu Cable TV (TACTV) counter*.
You will receive an SMS acknowledging your request.
The Assessor evaluates your application and measures your building. They then submit the tax assessment proposal.
The proposal is handed over to the Assessment Committee after the approval officer has completed the field verification.
The Assessment Committee has approved the proposal.
You will receive your assessment notice & an SMS of approval.
Online Evaluation
You can submit your tax assessment application online using the online citizen portal. You must create a user ID and password and enter information such as the property’s location, your name, door number, contact number, and complete address. The Greater Chennai Corporation makes it simple for residents to pay their property taxes online.
Conclusion
Property tax does not apply to Central Government buildings or foreign mission buildings. Though private schools and colleges were previously exempt, this was lifted in March 2018. Failure to pay tax results in a penalty of 5% to 20%. Property tax is a significant source of revenue for local governments to maintain public services, making property tax payments a moral obligation for citizens who are buying the flats for sale in Madhananthapuram.
