Anybody United Nations agency owns property, whether or not it’s an ad building, house or land needs to pay a capital levy or house tax to the govt. this is often an area tax and to not be confused with the tax that is paid to the central or federal, or service tax that is paid on services or merchandise.
Property tax is levied by the government and is delegated to the native bodies like the town firms or municipalities to specify the valuation technique, the levy band and also the procedure for assortment. This tax needs to be paid annually by the owner of the property. The assets is calculated on the annual rental worth (ARV) or on a rating supported the neck of the woods.
Reasonable property worth
The Chennai Corporation uses the idea of cheap property worth (RLV) to calculate the ARV and also the 0.5 yearly capital levy, below Section a hundred of the Chennai town Municipal Corporation Act 1919. this is often relevant to any or all properties in Chennai. The RLV is additionally referred to as the monthly rental worth. There area unit completely different rates for industrial and residential properties.
The factors within the assessment of capital levy
a) footstall space
b) the essential rate of the neck of the woods
c) Building use- residential or industrial
d) Owner occupied or rented
e) Building age
Locations and Rates
The Chennai Corporation in 1993-94 divided the town into 172 residential locations and 274 non residential locations. thus residential locations and non residential locations have completely different rates. the essential rate ranges from a minimum of government agency zero.60 per area unit to government agency two.40 per area unit for residential and government agency four per area unit to government agency twelve per area unit for non residential locations.
How to calculate capital levy
While calculative capital levy, the primary issue to try and do is to make the annual worth of the property. this could be done by calculative the monthly rental worth. this is often the formula in step with the Chennai Corporation website: – footstall space x Basic Rate per area unit = Monthly rental worth. The second step is to get the annual rental worth. this could be obtained thus: – Monthly rental worth x12 minus 100 percent.
Documents needed
The documents that ought to be enclosed area unit the deed with approved arrange copy and a replica of the last paid tax receipt. within the case of chartered land, a no objection certificate from the owner of the land for assessment ought to be boxed-in.
Owner Rebate
Properties that don’t seem to be rented and occupied by the owner are going to be given a rebate. there’s conjointly a rebate on the age of the building.
Properties in hand by the Central Government area unit exempt from paying capital levy. Buildings occupied by foreign missions conjointly relish a tax exemption. There area unit completely different assessment slabs for special kind of buildings like (a) nursing home/hospital (b) star hotel/lodges (c) cinema theatre (d) kalyana mandapam
Property tax is additionally among some service taxes like water tax, emptying tax and sanitation or conservancy tax.
