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Property Tax Assessment

Revenue Department

METHOD OF PROPERTY TAX ASSESSMENT

As per section 100 of Chennai City Municipal Corporation Act 1919, concept of reasonable letting value (R.L.V.) has been adopted for arriving at annual rental value and Half yearly tax for any property in Chennai City limits. The monthly rental value (R.L.V.) is fixed with reference to Basic Rate per Sq.feet for Residential and Non-Residential properties separately. Location wise Basic Rate are furnished in the annexure:

Method of fixing Annual Value of any Property:

Example

Plinth Area X Basec Rate per Sq.ft e.g. 100 Sq.ft. x Rs.1.00 Monthly rental value (i.e) 100 P.M.
Annaul renatal value Rs.(100 x 12months) - 10% for land Annual Value for Building only Rs. 1200/- - Rs.120/- = Rs.1080/- Rs.1080/
Less 10% depriciation for the building for Repairs / Maintenance Rs. 108/-
Depriciated value of the building Rs. 1080 - 108 = Rs.972/-
Add 10% of the land Rs. 120/-
Annual Value for land and Buildings 972 + 120 = Rs. 1092/-

Simply stated, 10.92 is the common factor for calculating annual value for all buildings. To arrive at Annual value of any building, multiply monthly rental value with 10.92. Method of fixing Annual Value for Land :( taken on lease or rent) Monthly rental value ( as per agreement between lessor and leesee) x 12 = Annual Value No depreciation is allowed for land For Vacant Land: Rent per 2400 Sq.feet (One Ground) = Rs. 8.00 P.M. Annual Value (Rs.8.00 x 12) = Rs. 96.00 P.M. Method of fixing Annual value for Super Structure only: (Landowner being separate) Annual rental value - 10% x (MRV x 12) Half yearly Property Tax for any property is calculated as percentage of annual rental value as per table given below.

GRADE ANNUAL VALUE HALF YEAR TAX(as % of A.V)
    Gen.Tax Edu.Tax Total Lib.(Less) Total
I Rs.1.00 to 500.00 3.75% 2.50% 6.25% 0.37% 6.62%
II Rs.501.00 to 1000.00 6.75% 2.50% 9.25% 0.67% 9.92%
III Rs.1001.00 to 5000.00 7.75% 2.50% 10.25% 0.77% 11.02%
IV Rs.5001.00 & Above 9.00% 2.50% 11.50% 0.90% 12.40%

Note: 10% Library Cess is calculated from General Tax of Property tax. G.O.Ms.No.492, dated 19.5.1992. Council Resolution No.246/2001,dt.22.5.2001. Concession Allowed:

  • 20% rebate over monthly rental value is provided for Semi-permanent Buildings (tiled, Asbestos, Thatched except terraced roofing)
  • 25% rebate over the monthly rental value is allowed to residential and 10% for non-residential buildings for owner occupied buildings / Portions.
  • Depreciation for the age of the building is provided at 1% for each year for the buildings more than 4 years old subject to maximum rebate of 25%

Example:

Location - T.Nagar ... Basic Rate Rs.1.50 per Sq.feet.
Plinth Area ... ... G.F. 500 Sq.ft
F.F. 500 Sq.ft
Nature of Construction : ... ... G.F. Terraced
F.F. Asbestos
Usage of the Building Residential
Occupancy G.F. owner
F.F. Tenent
Age of the Building: ... 10 years

Calculation of Property Tax:

G.F. 500 Sq.ft. x Rs.1.50 Rs. 750.00
Rebate for owner occupation 25% Rs. 187.50
------------
Rs. 562.50
Age rebate 10 years (10%) (less) Rs. 56.25
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Rs. 505.25  Rs. 505.25                 (G.F.Rental Value)
F.F. 500 Sq.ft. x Rs. 1.50 = Rs. 750.00
Semi-permanent (Asbestos) 20%  less Rs. 150.00
------------
Tenant Occupation - Rs. 600.00
------------
Rs. 600.00
Age rebate 10 years (10%) Rs. 60.00
------------
Rs. 540.00   Rs. 540.00                  (I.F Rental Value)
Total Rental Value  Rs. 505.25+540.00 =1045.25
(Rounded to 1045.00)
Annual value = 1045 x10.92 Rs 11,411.00
Half year Tax= 11411 x 11.95 % = Rs.  1,363.00

Method of Assessment for Special Type of Buildings:

Sl. no Special Type of Buildings Details of Special Type Buildings
1 Nursing Home / Hospital
  • For Nursing Home portion in any buildings Annual rental value shall be arrived at 13.5% of the Total income calculated as per the tariff rate per room per year.(Total number of room x tariff rate per day x 365 days.) Annual rental value ¸ 12 is monthly rental value.
  • Rental Value for Other Commercial portions such as Pharmacy and consulting rooms tax shall be calculated like any other Commercial buildings. 
  • The monthly rental value for the Nursing Home portion and monthly rental value for other Commercial portions if any put together is total monthly rental value. Monthly rental value X 10.92 = Annual Value. 
  • Consequently half yearly tax is calculated as percentage of annual value as per table given above.
2 Star Hotels & Lodging House As per G.S. MS No.855/0f R.D.L.A. Department. Dt:19.4.1972 Government has suggested assessment of lodging houses in following manner. All lodging houses in city have been classified into following categories. 1) Posh Hotels / Lodges All Star Hotels fall in this category. 2) 'A' Class Hotels/Lodges Non Star Hotels / Lodges situated in Posh localities. 3) All other Hotels/Lodges. Posh Hotels and Lodging Houses All star Hotels in the city will be considered as posh Hotels. Annual Rental Value shall be fixed at 10% of the total room tariff per year (Total rooms x tariff per room per day x 365 days). Calculation of Half Yearly Property Tax. Step I: ARV for Lodging portion ¸ 12 + MRV for other area used as Commercial portion such as Bar, shops. Restaurant etc. Calculated as for any Commercial building = Total MRV Step II: MRV x 10.92 = Annual Value. Step III: Half yearly tax shall be calculated as percentage of annual rental value as per table give above. "A" Class Hotels and Lodging Houses Annual Rental Value shall be fixed at 20% of the total room tariff per year (Total rooms x tariff per room per day x 365 days). Calculation of Half Yearly Property Tax. Step I: ARV for Lodging portion ¸ 12 + MRV for other area used as Commercial portion such as Bar, shops. Restaurant etc. Calculated as for any Commercial building = Total MRV Step II: MRV x 10.92 = Annual Value. Step III: Half yearly tax shall be calculated as percentage of annual rental value as per table give above. "B" Class Hotels & Lodges  Annual Rental Value shall be fixed at 25% of the total room tariff per year (Total rooms x tariff per room per day x 365 days). Annual rental value ¸ 12 is monthly rental value. Calculation of Half Yearly Property Tax. Step I: ARV for Lodging portion ¸ 12 + MRV for other area used as Commercial portion such as Bar, shops. Restaurant etc. Calculated as for any Commercial building = Total MRV Step II: MRV x 10.92 = Annual Value. Step III: Half yearly tax shall be calculated as percentage of annual rental value as per table give above.
3 Cinema Theatre Cinema Theatres are classified into "A" and "B" Out of Total annual income calculated as per seating capacity of the theatre and tariff rate for each class, 40% shall be set aside towards entertainment tax. Remaining 60% shall be calculated as gross income. Out of total gross income, 53% shall be treated as annual income. For ‘A’ class theatres, 7.5% of the annual income shall be treated as annual rental value. For ‘B’ class theatres, 6.5% of the annual income shall be treated as annual rental value. Calculation of Half Yearly Property Tax. Step I: ARV of theatre portion ¸ 12 + MRV of Commercial portion = Total MRV Step II: MRV x 10.92 ¸ Annual Value Step III: Half yearly tax for the theatre shall be calculated as percentage of annual value as per table given above. Annual Rental value ¸ 12 is monthly Rental Value.
4 Kalyana Mandapam All Kalyana Mandapams are classified in to A,B, and C categories with reference to their location near Bus Stand, Railway station, Markets etc. For ‘A’ category Kalayana Mandapam total No. of Marriages to be conducted in a year shall be taken as 40. The same shall be 30 for ‘B’ and 20 for ‘C’ category Kalyana Mandapams. ARV Kalyana Mandpam Portion = 50% of Gross charges in the Kalyana Mandapam with vessels and 60% without vessels. Annual rental value ¸ 12 = Monthly rental value Gross Income: Rate charged per marriage x No. of marriages fixed annually as per category. Calculation of Half Yearly Property Tax   Step I: =ARV Kalyana Mandapam Portion ¸ 12 + MRV for other Commercial areas calculated like any other commercial building = TOTAL MRV  Step II: MRV x 10.92 = Annual Value  Step III: Half yearly Property Tax shall be calculated as percentage of Annual rental value as per table given above.

REVENUE OFFICER.