Chennai Corporation expects ₹130-crore revenue boost through GIS review

Besides implementing the GIS survey findings, Chennai Corporation saw nearly a ₹50 crore jump in overall tax collection during the incentive period, October 1 to 30

The Greater Chennai Corporation (GCC) expects to generate an additional ₹136.75 crore in annual revenue, apart from its regular collection, by correcting tax errors in property, professional, company taxes and trade licenses identified via the Geographic Information System (GIS) initiative.

An official in the Revenue Department said that inspections of commercial properties under the GIS initiative will continue across the city, but not those of residential buildings at the moment, as per orders from the higher authorities. Residential spaces will be inspected later, he added.

Besides implementing the GIS survey findings, Chennai Corporation saw nearly a ₹50 crore jump in overall tax collection during the incentive period, October 1 to 30. In October of FY 2023-24, the Corporation collected ₹329 crore, whereas in FY 2024-25, ₹372 crore was collected, the official said.

Through regular inspections, the GCC has identified thousands of unmatched (those missing from the GCC’s property records) or under-assessed (registered but taxed or paying below their actual value) properties and businesses, which may add to the civic body’s kitty.

The additional demand comprises ₹96.52 crore from property tax, ₹36.98 crore from professional tax, and ₹3.25 crore from trade license and company tax, as of September 28, according to data from the Corporation. Additional demand is a taxing gap where, for instance, a property paying ₹1,000 may now be assessed at ₹1,500, generating an excess demand of ₹500.

According to information, as of September 28, the GCC’s system identified 12,52,775 under-assessed property tax bills, of which 59,302 pertained to commercial properties and 2,24,868, residential. Only 10,216 of these residential bills have been verified, while the remaining 2,14,652 await further assessment, as of September 28, according to the data.

The data revealed that for professional tax, the GIS system flagged 2,22,626 bills requiring assessment, with only 1,75,933 verified so far. This leaves 46,693 cases pending review.

Similarly, trade licenses and company tax records identified 2,20,995 bills, out of which 83,771 were verified, with a remaining balance of 1,37,224 pending verification, the data indicated.

The move to reassess began this year. It comes a decade after its last review, and two years after the Corporation completed the GIS survey of commercial properties within its limits.

Published - November 06, 2024 05:05 pm IST