Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
In the midst of increased property taxes, revised electricity rates, and heightened water charges, prospective home builders must now prepare for a twofold increase in the expenses associated with obtaining building permits and demolition clearances. The Greater Chennai Corporation has taken the initiative to double the company tax, which is collected from businesses during their registration process, as well as the fees for building licenses. This resolution, which received unanimous approval in a recent council meeting, imposes these new charges.
It is worth noting that fees will remain unchanged for buildings with an area measuring under 100 square meters, offering some relief to smaller residential projects. For residential structures spanning from 101 to 400 square meters, the revised tax now stands at 820, up from the previous 410. Commercial buildings will face a fee of 920, doubling from the previous 460. Larger residential buildings, exceeding 401 square meters, will witness a fee increase from 1,050 to 2,100. Industrial buildings are also subject to an increase, with the fee now set at 2,300, up from the previous 1,150.
Interestingly, despite the considerable hike in fees, none of the ward councilors expressed opposition to the resolution. In an effort to alleviate the financial burden on economically disadvantaged sections of the population, the resolution stipulates that fees will not be revised if the built-up area is less than 100 square meters. Responding to allegations of bribery and the involvement of intermediaries in the booking of community halls, the corporation has implemented mandatory online registration.
Simultaneously, company taxes have seen a threefold increase from their previous values. Companies with annual investments of less than Rs 99,999 are now required to pay 300, a substantial increase from the previous 100. Companies with investments ranging from Rs 1 lakh to 2 lakhs will now pay 600, up from the previous 200. For companies with investments exceeding Rs 10 lakhs, the company tax has risen to Rs 3,000. Furthermore, the fee for obtaining permission for demolitions has doubled.
For the ground floor with a reinforced concrete roof, the fee is now Rs 220 per square meter. For subsequent floors and compound walls, the cost has escalated to Rs 140 per square meter, a significant increase from the previous Rs 70. These revisions reflect the city's efforts to streamline and augment revenue collection while also addressing issues of transparency and financial equity in property and company taxation. The goal is to ensure that the costs associated with construction and business operations in Chennai are met through a fair and sustainable framework that benefits all stakeholders.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
