SBI Term Loan: RLLR: 8.15 | 7.25% - 8.45%
Canara Bank: RLLR: 8 | 7.15% - 10%
ICICI Bank: RLLR: -- | 8.5% - 9.65%
Punjab & Sind Bank: RLLR: 7.3 | 7.3% - 10.7%
Bank of Baroda: RLLR: 7.9 | 7.2% - 8.95%
Federal Bank: RLLR: -- | 8.75% - 10%
IndusInd Bank: RLLR: -- | 7.5% - 9.75%
Bank of Maharashtra: RLLR: 8.05 | 7.1% - 9.15%
Yes Bank: RLLR: -- | 7.4% - 10.54%
Karur Vysya Bank: RLLR: 8.8 | 8.5% - 10.65%

Andhra Pradesh announces 50% interest waiver on property tax arrears

#Taxation & Finance News#India#Andhra Pradesh
Last Updated : 23rd Mar, 2026
Synopsis

The Andhra Pradesh government has introduced a 50% waiver on interest for pending property tax dues to encourage faster recovery and provide relief to taxpayers. The scheme applies to residential properties and vacant lands across urban local bodies, provided dues are cleared before March 31, 2026. Taxpayers must pay the full principal amount along with half of the interest to avail the benefit. The move follows similar past initiatives that helped improve collections, with authorities expecting better compliance and a reduction in long-pending arrears through this limited-time relief.

The Andhra Pradesh government has rolled out a one-time relief scheme offering a 50% waiver on interest charged on pending property tax dues. The benefit is available to property owners who clear their outstanding dues within the given deadline of March 31, 2026.


The scheme covers residential properties as well as vacant lands falling under urban local bodies. To avail the waiver, taxpayers are required to pay the full principal tax amount along with 50% of the accumulated interest. The remaining interest amount will be waived under this initiative.

Officials have indicated that the decision is aimed at reducing the burden on taxpayers who have accumulated dues over time, while also improving overall tax recovery. Property tax arrears have been a concern for local bodies, with a significant portion remaining unpaid due to rising interest liabilities.

Municipal authorities have been instructed to actively promote the scheme and ensure that taxpayers are informed about the benefit. Payment facilities have been made available through both online and offline modes to make the process easier and more accessible.

This is a continuation of similar measures introduced in the past. A comparable interest waiver scheme implemented earlier had resulted in improved collections, as many property owners opted to clear dues when given partial relief on interest. The earlier initiative covered arrears up to the financial year 2024-25 and saw a positive response across several municipalities.

The government has continued with this approach as it helps in faster recovery of dues without reducing the principal tax component. Officials believe that such time-bound schemes encourage voluntary compliance, especially among those who had delayed payments due to accumulated penalties.

There have also been instances where stakeholders and taxpayers had requested extensions or similar relief measures in previous schemes, particularly close to financial year-end periods. Taking these factors into account, the current waiver has been structured to provide a clear window for settlement while ensuring steady revenue inflow for local bodies.

Have something to say? Post your comment