Property tax: 5 pc incentive or 2 pc penalty, says Chennai Corporation

A government order on imposing penalty was ratified by the civic body by adopting a resolution on September 22.

The civic body collects property tax in two half-yearly tranches – the tax for the first half of the financial year (April to September) should be paid before April 15, and tax for the second half of the year (October to March) should be paid before October 15.

According to the Corporation, two per cent penalty with interest would be collected from property owners who fail to pay property tax between April 1 to April 15, and October 1 to October 15. “Also, property owners who had approached the property tax tribunal and received orders should pay the balance amount, if any, within 15 days after the order. If they fail, they should pay two per cent penalty with interest,” added the statement from the civic body.

On the other hand, to encourage property owners to pay tax within the stipulated time, the civic body has also issued orders to provide five per cent incentive (not exceeding Rs 5,000) if they pay it before April 15 and October 15.

In 2018, the State government had amended Chennai City Municipal Corporation Act, 1919, enabling the penalty and incentive system based on a proposal from the cash-starved Chennai Corporation.