Being a homeowner is a huge step and a huge responsibility
as well, and paying property tax is one of those responsibilities. It can be a
bit intimidating if you are just starting out or you are thinking of buying a
property and have a limited idea about property tax of your city, here are a
few pointers that will help you with better understanding. There is a different
rate of Property tax for different states. In Chennai, property tax is
calculated by estimating the annual rental value of the property by multiplying
the plinth area of the property with the base price of the locality and
multiplied further by 10.92, the common factor.
The key factors that are accounted for while calculating
property tax in Chennai are:
The total built-up area of your building, including the
square feet area, walls, corridors and other common facilities that are shared
by others like the lobby and stairs.
The tax rates depend broadly on the area or location of your
property, the amenities and the facilities available around you and your
property. There is a basic fixed rate of tax for your locality or street.
The tax rate also depends on the usage of the property; it
will be separate if used for commercial or residential purposes. It also
depends on whether the owner lives in the property or has rented it out.
The age of the building also is the key factor while
calculation of property tax.
The
property tax for the city of Chennai is directed to Greater Chennai Corporation
(GCC) and the tax is calculated for each year. And it can be paid annually or
half-yearly. The process of paying the tax can be either done manually or
online, depending on your convenience. Also, property taxes can be deducted on
your annual tax returns if you are a property owner.
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