The Greater Chennai Corporation has put its property tax reassessment exercise on hold with immediate effect following several petitions seeking its withdrawal in recent days, as reported in The New Indian Express.
In a statement issued on Thursday, 13 August 2026, the civic body said property tax would revert to the amount that was applicable before the reassessment. For property owners who have already paid the revised tax demand, the excess amount will be adjusted against their property tax dues for subsequent half-years as advance tax, the corporation said.
The corporation had undertaken the reassessment without increasing the existing property tax rates. The exercise was aimed at identifying properties that it believed were under-assessed and revising their tax demands accordingly.
As part of the exercise, the civic body issued 3.49 lakh notices to property tax assessees with revised demands.
Corporation officials told The New Indian Express that 28,382 assessees had accepted the reassessment as of Thursday. The exercise had also resulted in the corporation collecting an additional Rs 11.10 crore in property tax.
The reassessment was undertaken at a time when the Chennai civic body was facing a fund crunch. Officials had hoped that correcting tax demands for properties that were considered under-assessed would help increase the corporation’s revenue.
However, the move faced opposition from property owners, with several petitions submitted to the corporation in recent days seeking that the reassessment be withdrawn.
Following the petitions, the corporation has now suspended the exercise with immediate effect and restored property tax to the levels prevailing before the reassessment.
For those who have already paid the revised demand, the corporation has clarified that the additional amount will not be lost. Instead, it will be carried forward and adjusted against property tax payable in the following half-years as advance tax.
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