Property Tax: Tamil Nadu govt reduce tax for property on rent from 100 to 50 per cent

Tamil Nadu government today passed a Government Order stating a reduction in Property Tax for rented properties from 100 to 50 percent.

The state government had earlier decided to hike property tax in all Municipal Corporations, Municipalities,Third Grade Municipalities, Town Panchayats propelled by the Madras High Court’s direction to decide on revising the old tax slab within a fortnight.

Authorities had earlier assured that the hike would not be more than 50 percent for residential buildings, it would be 100 percent for property on rent. This was revised today and Property Tax for rented properties was brought down to 50 per cent, which was the earlier rate.

Increasing the tax rate was done to shore up the revenue for the local bodies, which are now struggling to run day-to-day operations due to a crippling shortage of funds. For instance, in the case of the Greater Chennai Corporation, which is heavily debt-ridden, the revision comes after 20 years. A senior Corporation official said the revision of property tax has been pending for long and would immensely benefit the civic body to repay its debts within the next few years.