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Revenue Department:

This department is one of the pillars of the Chennai Corporation. The major source of income is derived from this Department Property Tax continues to be the main source of revenue for the Corporation of Chennai since its inception. The revenue out of Property Tax is increasing every year with the simultaneous increase in the number of properties. The Corporation is also trying to improve its tax collection within its ambit of existing powers for implementing the various welfare measures in the City of Chennai and providing basic amenities to make it a green city. Apart from this, this department deals with conduct of elections for (Parlimentary, Legislative Assembly and Local body.) This department is also attending election related works such as Summary revision, Intensive revision of electoral rolls etc. During natural calamities the Revenue Department's involvement is most dependable.

This Department is governed by The Chennai City Municipal Corporation Act 1919. Section 98 to 109 and Schedule IV of the MCMC Act deals with the rules and regulations of this department .
This department deals with the following subjects.

  • Property tax
  • Profession Tax
  • Timber Tax
  • Company Tax
  • Advertisement tax
  • Trade License
  • Miscellaneous

The total strength of the out door complement staff is as follows:

1 Revenue Officer 01
2 Addl.Revenue Officers 02
3 Asst.Revenue Officers 29
4 Assessors 85
5 Licence Inspectors 50
6 Tax Collector 276

Corporation of Chennai

Property Tax Assessment
Revenue Department

METHOD OF 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

The Council in its Resolution No.470/2008,dated 27.08.2008 has resolved to adopt the following method for arriving half yearly tax:

Half yearly tax = Plinth Area x Basic Rate x 135%

(135% = 10.92 x 12.40%)

 


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:

The Council in its Resolution No.405/2009, dated 29.10.2009 has resolved to levy property tax for the vacant land at the following rates:
.

  Minimum Maximum
Streets in Residential area Rs.0.30 Rs.50p
Main Roads and Bus Route Roads other than those which leads to arterial road Rs.0.40 Rs.75p
Arterial roads,main roads and Bus Route Roads which lead to arterial roads Rs.0.50 Rs.1.50p
 

 

Half Yearly Property Tax for any property is calculated as percentage of annual rental value as per table given below.

HALF YEAR TAX(as % of A.V)

Gen.Tax Edu.Tax Total Lib.(Less) Total
9.00% 2.50% 11.50% 0.90% 12.40%

Note:

Library cess: 10 paise per Rupee as per the G.O.No.92,Education Department,daed 23.04.2008.

Concession Allowed:

  • 25% rebate over the monthly rental value is allowed to residential and 25% for non-residential buildings for owner occupied buildings / Portions.

Example:

T.Nagar Basic Rate Rs.1.50 per Sq.feet.
Total Plinth area 1000 Sq.ft.
Usage of the Building Tenant Residential


Calculation of Property Tax:

1000 Sq.ft x Rs.1.50 per sq.ft. x 135%

Half Yearly tax is Rs.2025/-

 

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

The Council in its Resolution No.454/2009,dated 30.11.2009 has resolved to adopt uniform method for all class kalyanamandapams.

As per the Council Resolution,50 Nos.of functions is being taken uniformly for all class of kalyanamandapams for arriving annual rental value.


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 function x 50 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.