CHENNAI: The Chennai Collectorate has urged property owners to ensure that they submit Form 35 after splitting a property of more than two grounds in area into smaller plots for sale or other reasons.
Submission of the form is essential to changing the kind of tax to be paid, according to a press release from the Collectorate.
In Chennai, property owners with land or house above two grounds in area have to pay urban land tax. One ground is 2,400 square feet. Those with land or house of area smaller than two grounds have to pay property tax.
If an owner of land above two grounds in area sells his land entirely or in part, registration of the sale deed alone would not change the tax structure. The owner would have to get Form 35 from the Assistant Commissioner of Urban Land Tax concerned and give him a petition with a copy of the sale deed for a revised urban land tax order. After giving such a petition, the revised order would be issued for the same year as the one in which form 35 was submitted, the release said.
Until the petition in Form 35 is handed over, the original owner would be liable to pay the same amount of urban land tax as before the sale. When those liable to pay urban land tax demonstrate through the required documents that the extent of their property has fallen below two grounds, they would have to pay quit rent for up to two grounds.