Frequently Asked Questions

What is Property tax?

A : Property tax is a tax levied on every building in a Municipal / Town Panchayat limit together with its site and other adjacent premises occupied as appurtenance.

Who is empowered to levy a Property Tax?

A : The concerned Municipal Council is empowered to levy Property tax on directions from the Government by order published in the Official Gazette (Refer Sec 78(1) of TNDM Act, 1920)

What are the components of Property Tax?

A : a) a tax on general purpose
b) a drainage tax
c) a lighting tax
d) a Scavenging tax
e) a railway tax. But in town panchayats, only the tax on general purpose is levied.

What is the period of levy of the Property tax?

A : The Property tax is levied every half year (Ref Sec 86 of TNDM Act, 1920)

What is the mode of Assessment of Property Tax?

A : Self Assessment Mode

How can a Citizen apply for Property Tax?

A : A citizen applying for Property Tax should submit a) duly filled in Self-Assessment Form.
b) Documents of title such as sale deed / patta.
c) Agreement of Sale / Agreement of construction in case of Apartments.
d) Approved Building Plan obtained from the Concerned Town Panchayat.
e) Photograph showing the Rain Water Harvesting Structure in the building.

What are the buildings exempted from Property Tax?

A : The following buildings and lands shall be exempt from property tax:- a) Places set apart for public worship.
b) Choultries for the occupation of which no rent is charged.
c) buildings used for educational purpose including hostels attached there to, public buildings and places used for charitable purpose.
d) Such Ancient moments prescribe under Ancient moments preservation Act, 1904
e) Charitable hospitals and dispensaries
f) Such hospitals and dispensaries maintained by railway administrations.
g) Burial and burning grounds included in the book kept at the municipal Office.
h) Buildings or land belonging to municipal Council. (Ref Sec 83 of TNDM Act, 1920)

What is the procedure for Name Transfer of Property?

A : i) On application by the person to whom the property is transferred the Registered Sale Deed of the property.
ii) Copy of receipt of the property tax paid up to the previous half year.
iii) Payment of Name Transfer Fees as prescribed by the concerned Town Panchayat.

What is water charges?

A : Water charges are the charges levied for supply of domestic and non domestic water provided to any household/commercial establishment.

On what basis, the water charges are levied?

A : The water charges are levied in accordance with the by-laws framed by the respective Council of Town panchayat.

What is the frequency for payment of water charges?

A : The water charges are levied on monthly/quarterly/Half yearly/ Anual basis in Town panchayats.

What can I do to obtain the House Service connection??

A : i) One has to apply the Town Panchayat in the form prescribed which is to be obtained from the Town Panchayat concerned or download the application form from the website
ii) Filled in forms should be submitted at the Town Panchayat Office on all working days.
iii) Submission of application along with a copy of the property tax receipt paid up to date, Patta in case of Natham or ownership registered document of property.
iv) Citizen have to wait for their turn i.e. seniority.(A seniority list will be prepared after calculating the registration fee and drinking water will be provided within 7 days after payment of deposit and necessary centage charges.)
v)Initial Amount for Water Supply connections which is non refundable will be collected based on the usage of water supply connection in accordance with bye-laws of the Local Bodies.
vi) Payment of centage charges for Water Supply Connection, on intimation from the local body in writing.

Who should pay Profession tax?

A : (i) Employees working in Central of State Government Departments, Public Sector Under takings, Private Companies including Quasi Government Organisations.
(ii) Traders
(iii) Companies, Corporate bodies, Societies, Firms etc.,

What is the Time Limit for filing Half-yearly Returns?

A : a) For Employees working in Central or State Government Departments, PSU, Private Companies including Quasi Government Before 15th of September and 15the of February every year
b) Other person – Before 30th of September for the first half year and before 31st off March for the Second Half Year.

Who are exempted from levy of Profession Tax?

A : a) the members of the Armed Forces of the Union serving in any part of this State to whom the provisions of the Army Act, 1950 (Central Act XLV of 1950), the Air Force Act, 1950 (Central Act XLV of 1950) or the Navy Act, 1957 (Central Act 62 of 1957) applies
(b) the members of the Central Reserve Police Force to whom the Central Reserve Police Force Act, 1949 (Central Act XLVI of 1949) applies and serving in any part of this State
(c) Physically disabled persons with total disability in one or both the hands or legs, spastics, totally dumb or deaf persons or totally blind persons are exempted from profession tax.

What is Non Tax?

A : The income generated from the assets of the Local body like wise, Daily/Weekly Shandy, Bus stand collection, Public Toilets, Trees, Shops, Lodges, Parking Lots and etc. are the Non Taxes.

How can I apply for trade license?

A : The applicant must fill the application in Form-I along with proof of address, documents connected with the building, which could be a property tax receipt (for an own building) or rental agreement (for a rented building), affidavit declaring the nature and location of trade in a non-judicial paper attested by a Notary Public submit to executive authority of ULB’s.

When to apply for Trade license?

A : Applications are to be made to the Executive Officer not more than 90 days in case of before the place is used for such purpose, not less than 30 days in case of Town Panchayats.

How trade license is issued?

A : On receipt of application the Executive Officer shall scrutiny with reference to the suitability of the place,Possibility any danger in life or health or property are the livelihood of any nuisance being created etc., applicability of provisions of other Acts and after satisfaction shall issue demand for payment of license fee within 7 days.

How much the trade license fees?

A :Trade License fees are fixed by the council of concerned Local Bodies based on their local conditions.

How to remit the license fees?

A : License fee can be remitted offline/online in the concerned Local Body/Town Panchayats.

How and When to renew the Trade License?

A : Renewal application shall be made before 1st March of every year in Town Panchayats. Renewal applications made after February shall be liable for penalty as fixed by the respective council.

What are the documents required/documents to be enclosed for applying Trade License?

A : i) Identity Proof.
ii) Lease Deed/Legal occupancy certificate
iii) PAN/TIN.
iv) Copy of the property tax receipt for the previous half year.
v)In respect of factories/premises/work places in which steam or other is to be employed. (More than 5 HP) Copy of the permission given for the construction and installation of machineries by the council/standing committee as the case may be.

What are the procedures for the permission for establishing or installation of factory or workshop or workplace?

A : Grant of permission for the construction, establishment or installation of factory, workshop or workplace in which steam or other power is to be employed.
i) Planning Approval and Building permission from the competent authority.
ii) Such particulars as to be the power, machinery plant or premises as the municipal council may require by by-laws made in this behalf.
iii) Approval of the Inspector of Factories (Wherever applicable) appointed under the India Factories Act 1911.
iv) Opinion of the Deputy Director of Public Health in ULBS where Municipal Health Officer post is not in existence.
v)NOC from Fire and Rescue Services Department
vi)TNPCB consent to establish the industry/workplace/workshop.