The
Chennai Corporation Council on recently
passed a resolution to increase the property tax for buildings housing
IT (Information Technology) firms.
Tax
Increase 50 to 200%..
The
increase in the tax rates range from 50 to 200%. The Corporation of Chennai has
identified about 345 IT companies in 10 zones in the western & southern
parts of the Chennai city.
The zones
of Tiruvottiyur, Manali, Madhavaram, Tondiarpet & Thiru.Vi.Ka. Nagar do not
have any IT firms.
The
Chennai Corporation has identified about 3.3 crore square feet of property used
for housing IT companies in the ten zones. The total property tax collected
from the owners of such buildings is Rs.10.84 crore.
The
existing average property tax rate for one square feet for such buildings is Rs.
3.29. The proposed property tax rates for the newly created category of IT
buildings approved by the Chennai Corporation council ranges from Rs.4 to
Rs.27.
Teynampet
zone will have a 200% increase from the Rs. 3 - Rs. 9 range to Rs. 9 - Rs. 27
range for IT buildings.
Sholinganallur
zone will have a 100% increase from Rs. 2 - Rs. 4 to Rs. 4 - Rs. 8 for such
buildings.
Improve
Property Tax Collection..!
The civic
body Chennai Corporation had initiated a study on IT buildings a year ago to
improve property tax collection in the city.
Mayor Mr. Saidai S. Duraisamy pointed out that
the tax rate for IT buildings was on a par with that of small retail shops.
 |
| Mayor Mr. Saidai S. Duraisamy |
Mr.
Duraisamy said, “The owners of the
buildings reap the benefits of rise in rental value of such buildings. But, the
tax rate for such buildings was not changed. The tax rate is based on the
rental value of the building. This is not a move against IT firms. The
Corporation is trying to collect the right amount of property tax from building
owners”
The
decision of the Corporation will lead to IT buildings becoming a new category
similar to hospitals, star hotels, lodging houses, cinema theatres &
marriage halls.
For More Details Please visit http://www.chennaicorporation.gov.in/
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