Property Tax

Property Tax

Property tax in India is the tax which is imposed on assets such as land, buildings, and so on by the government, regardless of their location and uses.Property tax is the primary source of income for the Tamil Nadu government.The calculation is done at the state level, however, the panchayats and municipal corporations are responsible in Tamil Nadu.

Property Tax Rates Across Tamil Nadu:

1.Opulent areas with all the basic amenities.

2.Opulent areas with just one or two basic amenities.

3.Mid-income areas have the amenities of every basic.

4.Mid-income areas without any amenities.

5.Short-income areas with every basic amenity.

6.Short-income areas without any basic amenities.

Required Documents for Registration Form:

1.Receipt of the last tax payment

2.No Objection Certificate (NOC) via the housing society.

3.Attested copy of sale transaction deed/sale deed with individual’s name on it.

4.Duly signed and filled out.

Note:

The documents mentioned above must be submitted for verification to the Revenue Commissioner investigating the case. Once the verification is completed, it would take 15 to 30 days to register the property.

How is Property Tax in Tamil Nadu calculated?:

Property taxes are calculated based on the property's Annual Rental Value (AVR) and Budget Variance Report (BVR). Check out the below-mentioned formula for Tamil Nadu property tax calculation:

1.The total AVR is equivalent to the AVR of the covered space + the total AVR of uncovered space.

2.The AVR of uncovered space will be equivalent to 12 x (½) x BVR x uncovered area in square feet.

3.The area of the covered area can be defined by the multiplication of the relatable value, including the addition of 12.

4.The property tax of an apartment building or flat is calculated on the basis of the basement floor area. The rate varies based on where the property is located. The use of the property is also key to the calculation, as the tax rates for residential and commercial properties differ. The occupancy type and total span of the existence of the building are also additional factors for the tax calculation.

Who Collects Property Tax in Tamil Nadu?:

In Tamil Nadu, there are several municipal corporations to which residents can pay their property taxes. To make your property tax payment, you must find the jurisdiction under which your property is located. After knowing the jurisdiction, you can make an online or offline payment for Tamil Nadu property tax.

Property taxes in Tamil Nadu need to be paid on time. Are you wondering why you make tax payments? Or why is it essential to make it before the due date? Failure to make a timely payment will result in a penalty of 1% per month.